DEPARTMENT OF THE AIR FORCE AFSPACECOM HOI 173-1
Headquarters Air Force Space Command
Peterson Air Force Base, Colorado 80914-5001 21 April 1989

Cost Analysis

PREPARING AND COORDINATING COST ESTIMATES AND ANALYSES

This headquarters operating instruction (HOI) defines the role of the Director-
ate of Cost Analysis (ACC) according to AFR 173-1, The Air Force Cost Analysis
Program, and tells how to prepare and coordinate cost analyses within the Head-
quarters. It applies to all Headquarters functional areas,

1. Policy. The cost analysis program provides decision makers with cost
estimates, analyses, and similar cost studies to help plan and control resources
for proposed and approved programs. The Director of Cost Analysis coordinates
on all cost estimates developed by functional areas (such as Manpower, Logis-
tics, Engineering & Services, Plans, Operations, etcetera) which exceed $500,000
in investment costs or $100,000 in annual recurring costs. For this operating
instruction, cost estimates, are defined as program cost estimates and studies,
life-cycle cost estimates, independent cost estimates and analyses, cost
avoidance studies, base closure cost estimates, operations and maintenance cost
estimates, manpower cost estimates, program decision packages, or any similar
studies. The Deputy Chief of Staff for Engineering and Services (DE) is respon-
sible for estimates on standard engineering documents. AFR 173-15, Economic
Analysis and Program Evaluation for Resource Management, tells how to prepare
economic analyses.

2. Responsibilities:

a. Directorate of Cost Analysis (ACC):

(1) Coordinates on all official cost estimates (defined in paragraph 1)
before releasing to agencies outside AFSPACECOM.

(2) Prepares operating & support (O&S) cost analyses of AFSPACECOM pro-
grams, upon request.

(3) Reviews program decision packages (PDP) of all AFSPACECOM programs
for validity, accuracy, and sufficiency of cost data.

(4) Provides reliable and timely cost information and factors to AF-
SPACECOM program element monitors (PEMS) for costing PDPS.

(5) Helps other functional areas, as needed, to develop cost estimates
and analyses.

(6) Develops cost factors for preparing cost analyses.

(7) Researches and validates data from historical records. May request
staff agencies to assist.
_________________
Supersedes S HOI 173-1, 2 May 1986. (For summary of changes see page 2.)
No. of Printed Pages: 2
OPR: ACCC (Capt D. Aguilar)
Approved by: Col D. Herrington
Editor: P. Catson
Distribution: F

2 S HOI 173-1 21 April 1989

(8) Supports acquisitions command in the development of O&S cost esti-
mates for independent cost analyses, independent cost estimates, etcetera, as
directed by the Air Staff.

b. Headquarters AFSPACECOM Staff Offices:
(1) Notify the Director of Cost Analysis when cost analysis support is
required.

(2) Coordinate with the Director of Cost Analysis on all cost estimates
(defined in paragraph 1) released to agencies outside AFSPACECOM, including re-
lated briefings and correspondence.

(3) Furnish one copy of each cost estimate (defined in paragraph 1) to
the Director of Cost Analysis. This is not required when cost product is
classified higher than SECRET.

(4) Support the Directorate of Cost Analysis, as needed, in the devel-
opment of cost factors.

3. Procedures:

a. When working groups are established for projects requiring cost analy-
sis, the office of primary responsibility (OPR) includes the Director of Cost
Analysis as a member,

b. When a Headquarters staff office requires cost analysis support, the OPR
sends the Director of Cost Analysis a written request. The point of contact
provides the overall objective, scope, ground rules and assumptions, con-
straints, force structure, alternatives, and any other data pertinent to the
analysis. The Directorate of Cost Analysis prepares the cost analysis.

c. When cost data is released outside AFSPACECOM, or is part of a document
requiring Command decision, the OPR coordinates with the Director of Cost Analy-
sis. Before releasing cost data related to any phase of AFSPACECOM's missions
or programs, data is fully coordinated and released in writing only.

d. Cost estimates are not released outside the Department of Defense unless
authorized by the Deputy Chief of Staff, Comptroller.

OFFICIAL DONALD J. KUTYNA
Lieutenant General, USAF
Commander

G. A. STANSELL
Colonel, USAF
Director of Information Management

SUMMARY OF CHANGES
Changes all references from the Director of Cost and Management Analysis (ACM)
to the Director of Cost Analysis (ACC). Provides more specific guidance on pre-
paring and coordinating cost products.