Controlling Costs: The 6-3-5 Method

Report Number: SYM-AM-16-066

Series: Acquisition Management

Category: Cost Management

Report Series: Symposium Proceedings

Authors: Bruce Nagy, Morgan Ames

Title: Controlling Costs: The 6-3-5 Method

Published: 2016-05-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2016/SYM-AM-16-066.pdf

Keywords: 6-3-5 Method, costs

Abstract:

This paper discusses a critical gap in the U.S. Navy acquisition process. This gap is caused by the absence of workforce alignment metrics and metadata algorithms in two areas: (1) As applied to determining estimated cost per work breakdown element as part of the bid analysis process; and (2) after the award is granted, as part of the task management functions to ensure expectations associated with the original estimate can be reliably fulfilled. In this paper, the integration of workforce alignment metrics that are processed by a statistically-based, metadata-driven algorithm is referred to as the 6-3-5 Method. The 6-3-5 Method was specifically engineered using results from numerous case studies from NAVSEA- and NATO-based programs focused on creating adequate cost control measures in support of the acquisition process. Based on these case studies, it is shown that the Department of the Navy