Enclosure (1) to COMDTINST 1520.2
Fundamentals of Cost Analysis
Fundamentals of Cost Analysis enables entry-level DoD personnel to prepare weapon system life cycle
cost estimates. The course covers DoD policies governing these estimates and the techniques used in
their preparation. Topics include a statistics review, regression analysis, learning curves, risk analysis,
software cost estimating, exploratory data analysis, validation, inflation, design-to-cost, cost and
operational effectiveness analysis, and economic analysis. Techniques presented in class are applied to
case studies. The Automated Cost Estimating Integrated Tools (ACEIT) software is introduced.
Prerequisites: ACQ 101.
Recommended: One year acquisition experience. Competence in algebra is essential; familiarity with
IBM compatible personal computers and a course in statistics are recommended.
Length: 15 Class Days
BCE 204
Intermediate Cost Analysis
Intermediate Cost Analysis is designed for the DoD acquisition cost analyst, although the techniques
instructed have much broader application. The course emphasizes the application and analysis of cost
analysis techniques used to predict the future resources required for the acquisition and support of DoD
weapon systems. Topics are divided into the disciplines of cost modeling and cost estimating. Topics
covered include: cost modeling process, data sources, data normalization, regression analysis and
diagnostics, nonparametric estimating, advanced cost improvement curves, fiscal spreading, and risk
analysis. Practical exercises and case computational aspects of these exercises and studies will be
performed primarily on the Automated Cost Estimating Integrated Tools (ACEIT) software as introduced
in BCE 101. Prerequisites: BCE 101.
Recommended: Two years of acquisition experience, or currently assigned
to a cost analysis position, and successful completion of ACQ 201.
Competence with algebra and statistics is essential.
Length: 15 Class Days
BCE 206
Cost/Risk Analysis
Cost/Risk Analysis prepares cost analysts to model the cost risk associated with a major Defense
acquisition program. Topics covered include basic probability concepts, subjective probability
assessment, goodness-of-fit testing, and basic simulation concepts. Practical exercises, a small-group
workshop, and a capstone article review reinforce techniques taught.
Prerequisites: BCE 101.
Recommended: ACQ 201.
Length: 4 1/2 Class Days
BCE 207
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