What is the CEAO (Cost Estimating and Assessment Office)?
The CEAO has been established to provide JSC programs, projects, and
directorates with cost estimating and assessment capability to insure costs
for programs, projects and other activities are defined and understood by
management throughout all life cycle phases.
Where is the CEAO office located?
The CEAO is organizationally located in the Office of the Chief Financial
Officer (CFO) at JSC. The Manager, CEAO, is a direct report to the CFO.
Under what division does the CEAO fall?
The CEAO is a division within the Office of the Chief Financial Officer.
How many people on the team?
There are currently 14 full-time employees in the CEAO. Occasionally the
office will also include a co-op student or intern.
What is the (brief) history of the office?
Since the ‘70’s JSC has always had a small but active cost estimating
office that provided the center with the capability to perform cost analyses
and assessments of on-going and future programs and projects. However,
during the ‘90’s the Center was not able to backfill cost estimating
positions as retirements and reassignments occurred due to the overall
hiring constraints experienced by NASA during this timeframe. Recently,
however, the Agency has recognized that a strong cost estimating capability
is important, especially at the Code M Centers, and has provided billets to
JSC to restaff and revitalize this function. Therefore, the CEAO was
established within the Office of the CFO in the spring of 2002. First, two
individuals who had previous cost estimating experience (one from the
Systems Management Office and one from the Engineering Business Management
Office) were reassigned to this newly created office. Then, additional cost
analysts were hired during the spring and summer of 2002 to bring the office
up to its current strength.
What can the CEAO do for me/ my project?
In general, the CEAO provides independent cost assessments and analyses.
Some of the products might include cost estimates for future programs,
“should cost” estimates, independent cost estimates, cost-effectiveness
analyses, cost-risk analyses, cost sensitivities, specialized cost models,
comparisons to historical cost data, and cost assessments of on-going
programs.
Will the CEAO kill my project?
No, the CEAO has no authority to “kill” a project based on the results of
its analyses and assessments. The information and analyses that we provide
are to be used by you, the manager, to assist in your understanding of your
project’s costs.
How do I know if my project needs a cost assessment?
If your project is following a predefined process, such as the process
described in NPG 7120.5, NASA Program and Project Management Processes and
Requirements, the process itself will define the need, timing, and scope of
the cost assessment. In other cases, you may be asked by NASA management to
perform a cost estimate or an estimate may be required to respond to
recommendations by an outside group reviewing NASA activities. Of course you
are always welcome to request a cost estimate for your own purposes, such as
an independent estimate to compare with contractor inputs or to compare with
the POP budget that has been established for your project.
Am I obligated to call the CEAO for my new project or current project?
No, there is no requirement that you use our office to generate the cost
estimates for your program. However, you are encouraged to do so we may be
able to bring additional credibility to your project by providing an
independent estimate. Also, if your project is scheduled for an external
review, such as a non-advocate review, it is quite likely that the review
team will expect that an independent estimate will have already been
performed and will want to see it.
How does the CEAO fit into the NASA mission and vision?
The CEAO supports the programs and projects that accomplish the NASA
mission and vision. The CEAO ensures that program and project costs are well
defined so that appropriate decisions can be made about how to allocate NASA
resources.
Are there CEAO’s at each NASA center? Is this an agency-wide initiative?
Each NASA Center has some in-house capability to perform independent cost
estimating and assessments. However, the size, office title, and the
organizational location of the cost group varies by Center.
What is the Cost Analysis Steering Group?
The CASG is NASA-wide group of cost experts representing each NASA
Center, the IPAO, and Headquarters, Code B. The CASG meets about 4 times a
year to exchange “best practices”, work on career development and training
issues, and to coordinate and promote consistent cost and schedule
estimating processes, policies, procedures, approaches, and methodologies
across the Agency. The CASG also advises Code B on the distribution of
funding for cost model research.
What is the IPAO?
The IPAO is the Independent Program Assessment Office. It is organized
according to its two functions, systems engineering and cost estimating. The
IPAO is located at LaRC but reports to NASA HQ. The IPAO is responsible for
technical and programmatic assessment of NASA programs and projects. In
particular, the IPAO leads the Non-Advocate Reviews and Independent Annual
Reviews of programs and projects that fall under the purview of NPG 7120.5
NASA Program and Project Management Processes and Requirements. The cost
estimating part of the IPAO reports to the Chief of the Cost Estimating
Office in Code B NASA Headquarters. The Systems Engineering part of the IPAO
reports to the Chief Engineer, NASA Headquarters.
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