Software Should-Cost Analysis with Parametric Estimation Tools

Abstract

In Department of Defense (DoD) acquisition contracts, there are often concerns of security and competitive advantage making it difficult to find comparable performance data that may be useful in evaluating contractor proposals. In order for programs to make such comparative evaluations, a should-cost analysis may be conducted. This analysis can be compared to a benchmarking process provided that a benchmark database is available. Parametric estimation tools provide this type of data. This paper shows how SEER-SEM was applied as part of the should-cost effort on the F-22 program. The Office of the Secretary of Defense recognized the resulting $32 million savings in the presentation on Better Buying Power II.