Cost Resolution Values Survey

National Security and Critical Technology Assessments of the US Industrial Base

PDF-Survey-Template-060513

Defense Industrial Base Assessment-Cost Metrics Survey

OMB: 0694-0119

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OMB Control Number: 0694-0119
Expiration Date: September 30, 2014

DEFENSE INDUSTRIAL BASE ASSESSMENT:
Diminishing Manufacturing Sources and Material Shortages
Cost Resolution Values Survey

SCOPE OF ASSESSMENT
The Bureau of Industry and Security (BIS), Office of Technology Evaluation is conducting a specialized survey in support of a Diminishing
Manufacturing Sources and Material Shortages (DMSMS) Cost Resolution Values assessment. An earlier Cost Resolution Values survey was
conducted in 2008. The Defense community and industry have recently developed renewed solution categories. This survey will be used to: 1)
validate the solution categories being used, and 2) determine the cost of each solution category used.
BIS, in cooperation with the DMSMS Working Group, is requesting your participation in this important survey. The overall goal of this project is to
survey government and industry to provide accurate data so that the DMSMS Guidebook, SD-22, can be updated to meet the cost avoidance and
should-cost reporting needs of program managers and DMSMS Management Teams (DMTs) throughout the Defense community.
RESPONSE TO THIS SURVEY IS REQUIRED BY LAW
A response to this survey is required by law (50 U.S.C. app. Sec. 2155). Failure to respond can result in a maximum fine of $10,000, imprisonment of
up to one year, or both. Information furnished herewith is deemed confidential and will not be published or disclosed except in accordance with
Section 705 of the Defense Production Act of 1950, as amended (50 U.S.C App. Sec. 2155). Section 705 prohibits the publication or disclosure of this
information unless the President determines that its withholding is contrary to the national defense. Information will not be shared with any nongovernment entity, other than in aggregate form. The information will be protected pursuant to the appropriate exemptions from disclosure under
the Freedom of Information Act (FOIA), should it be the subject of a FOIA request.
Not withstanding any other provision of law, no person is required to respond to nor shall a person be subject to a penalty for failure to comply with
a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid
OMB Control Number.
BURDEN ESTIMATE AND REQUEST FOR COMMENT
Public reporting burden for this collection of information is estimated to average 15 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send
comments regarding this burden estimate or any other aspect of this collection of information to BIS Information Collection Officer, Room 6883,
Bureau of Industry and Security, U.S. Department of Commerce, Washington, D.C. 20230, and to the Office of Management and Budget, Paperwork
Reduction Project (OMB Control No. 0694-0119), Washington, D.C. 20503.
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Section II

BACKGROUND INFORMATION

Your company/organization should provide detailed costs for DMSMS solutions that you have implemented. Please provide solution cost data for
the last two years, if available.
Purpose: The purpose of the DMSMS Resolution Cost Survey is to define and break down the costs to implement DMSMS solutions in sufficient
detail to allow DOD to:
• Estimate solution costs for emerging DMSMS issues
• Develop budgets and POM information for resolving DMSMS issues in the future
• Provide a basis for evaluating quotes for resolving DMSMS issues
• Allow programs to provide accurate estimates of DMSMS cost avoidance.
The objective is to generate a comprehensive, standardized inventory of cost solutions for the core warfighting tools DMSMS Cost Factors Team
supports. The standardized inventory will provide both the government and product manufacturers a common understanding of costs.
The cost factors used by this survey have been carefully selected to provide the detail needed for proper analysis. They are intended to include the
total cost of the solution implemented.
Diminishing Manufacturing Sources and Material Shortages (DMSMS) issues result from the loss, or impending loss, of manufacturers or suppliers of
items, raw materials, or software. DMSMS resolutions are selected based on the most cost effective, mitigation approach before there are any
operational impacts. DOD has defined a set of DMSMS solution types that can be applied to all DMSMS issues whether for raw material, hardware, or
software. These standardized solutions allow DMSMS practitioners to use a common language when discussing issues. Properly capturing the
associated costs to implement those solutions will allow accurate cost estimates for future DMSMS mitigation projects. Since no two projects are
exactly alike, resolutions costs will vary. However, if attention is made to detail on similar resolution cost breakouts, a range of costs should appear,
which will help us define the average resolution costs.
For more information concerning the DMSMS programs and the nonrecurring engineering cost metrics, please see the following resources:
- The DMSMS Knowledge Sharing Portal: http://www.dmsms.org
- DOD DMSMS Guidebook v2.1: http://www.dmsms.org/file.jsp?storename=ov_6_.pdf
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Section III

TABLE OF CONTENTS

Cover Page

Important Information

III

Table of Contents

Definitions

General Instructions

1.a-b

Organization/Company Information

Product/Solution Overview

Approved Part

Life of Need Buy

Repair, Refurbishment or Reclamation

Extension of Production or Support

Simple Substitute

Complex Substitute

Development of a New Item

Redesign- NHA

Redesign - Complex/System Replacement

Other DMSMS Solution

Certification
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Section III

Definitions
Term

Approved Part
Assembly
Aviation Environment
Benign or Non-Tactical
Environment

Definition
The obsolescence issue is resolved by the use of items already approved on the drawing and still in production.
Any grouping of parts that result in final unit that is considered a distinct item.

The part or equipment is used in or on aircraft.
Equipment is not expected to be in a tactical environment. Equipment that is deployed in a tactical environment but not
tactical in nature and not tested to the same standards as tactical equipment.
A replacement item that has different specifications, but requires no modification of the source product or the NHA, is
Complex Substitute
researched and validated.
A base unit part that may be used as part of an assembly.
Component
Computer Programs/
The costs for procuring and updating computer programs and documentation for use in the field/fleet. Does not include the
costs for tech manuals and other non-software documentation.
Documentation Costs
A replacement product is developed that meets the requirements of the original product without affecting the NHA.
Development of a New Item Nonrecurring engineering or other development-related activities will likely be required. The new product may be an
emulation, a reverse-engineered product, or a product developed as a replacement using a different manufacturer but the
or Source
original manufacturing designs and processes.
Equipment that generates electricity, transfers or controls electricity, or which uses electricity as its prime energy source
Electrical
(excluding electronics, see below). Examples: Motors, Switchboard, Transformers, etc.
Components, assemblies, or equipment that are built using electronic components and/or circuit cards. Electronic controllers
Electronics
used by this equipment are properly categorized here.
The one-time costs of research, design, and engineering work related to the solution selected (NRE). Ranges from
Engineering, Engineering
evaluation of a substitute to the development of a new design. Also included: prototype development, white paper
Data Revision Costs
development, drawing changes, ECP development/review, or reliability/maintainability analysis.
The supplier is incentivized to continue providing the obsolete items. This may involve long-term agreements to procure
Extension of Production or
specific quantities of parts. One-time costs may be associated with setting up this solution. Those costs should be included in
Support
any cost and cost avoidance calculations.
The part or equipment is used in a ground environment. (Example: Tanks, Artillery, etc.)
Ground Environment
The costs for short-term measures that need to take place prior to full implementation of the solution. This could be contract
maintenance or supply support until the solution is fully supported by organic systems. Life of Need (Bridge Buy) costs to
Interim Support Costs
extend product life until a redesign can be implemented may be included here.

Installation Costs

The costs to deploy the new equipment to the field/fleet. Only applicable if the new solution must be retrofitted into the
field/fleet as a direct result of the original obsolescence. Does not include replacement by attrition. Examples: software media
distribution, gathering data, scheduling installations, contractor or government Installations, or travel.

Life of Need Buy

A sufficient quantity of the item is purchased to sustain the product until its next technology refresh or the discontinuance of
the host assembly. Because this solution uses an approved item, no testing or drawing changes are required. The source of
supply can be residual stock from the original manufacturer, shelf stock from distributers, sponsor-owned material, etc. Costs
for packaging, storage, and transportation should be considered in the BCA for selecting solutions.

Mechanical

Software

Parts, assemblies, or equipment that are neither electrical nor electronic in nature.
The one-time costs to determine if a new item is suitable for use in the application. Costs could range from simple to complex
depending on the solution selected, type of equipment, and operating environment. Examples include developing/modifying
test procedures or equipment, functional testing, or unit environmental testing.
The substance or substances out of which a thing is or can be made.
A major assembly redesign affects assemblies beyond the obsolete item’s NHA and may require that higher-level
assemblies, software, and interfaces be changed.
The affected item’s NHA must be modified. Only the NHA is affected, and the new design will not affect anything at a higher
level in the system.
The obsolescence issue is resolved by instituting a repair or refurbishment program for the existing item or assembly,
whether a depot repair, a repair contract with the original manufacturer, or support from a third party.
The part or equipment is used on surface ships, boats, etc.
The item is replaced with an existing item that meets all requirements without modification to either the item or its NHA and
requires only minimal qualification. Associated costs are largely administrative.
The programs or other code used by computers of other electronic components or assemblies.

Software Development/
Modification Costs

The one-time costs for any and all NRE type software development or modification to the selected solution. This could range
from firmware revisions on a circuit card to the procurement of services to develop customized software.

Qualification of New Items
Costs
Raw Material
Redesign - Complex/
System Replacement
Redesign - NHA
Repair, Refurbishment, or
Reclamation
Shipboard Environment
Simple Substitute

Space Environment
Startup Costs
Supply/Provisioning of Data
Costs
Support/Test Equipment
Costs
Technical Manuals Costs

The part or equipment will be used in space. (Example: Satellites, Launch Systems, etc.)
The one-time costs associated with getting production started or restarted. Examples include contract costs associated with
production startup, costs to start an organic depot, or procurement of production rights or intellectual property.
The costs associated with updating records and data with the new solution information. Examples include level of repair
analysis, provisioning, procurement documentation, supply support, or developing maintenance plans.
The costs for modifying and/or buying support and test equipment for the new solution. Does not include the cost of
equipment purchased for both development and sustainment.
The costs for updating technical manuals to reflect the new solution including documentation development and distribution.

The one-time costs for equipment needed to design, test, evaluate, and qualify the new item for the solution. Items procured
that are used both during evaluation and sustainment should be included in this category. Does not include design,
engineering, and development work to prepare this equipment (engineering cost type).
Training/Training Equipment The costs for purchasing new or updating existing training devices, training materials, and training to accommodate the
solution.
Costs
The part or equipment will be used in submarines or other submerged equipment.
Undersea Environment

Tooling, Equipment, or
Software Costs

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Section IV
General Instructions
Your company is required to complete this survey using an Excel template, which can be downloaded from the BIS website at
http://www.bis.doc.gov/DMSMS. At your request, BIS staff will e-mail the Excel survey template directly to your company. For your convenience, a PDF
A.
version of the survey is available on the BIS website to aid internal data collection. PLEASE DO NOT submit the PDF version of your company’s response
to BIS.
Questions related to this questionnaire should be directed to:
Matt Sigmund, Trade and Industry Analyst, (202) 482-0634
LaTiesha Cooper, Trade and Industry Analyst, (202) 482-5415
Alex Adamczyk, Trade and Industry Analyst, (202) 482-7980
B.
[email protected]
For information on OTE’s defense industrial base surveys, please contact:
Brad Botwin, Director, Industrial Studies, at [email protected]
C.

Upon completion, review and certification of the survey, transmit the survey via e-mail to:
[email protected].
For letter correspondence to the Office of Technology Evaluation (OTE), please write to:

Brad Botwin, Director, Industrial Studies
Office of Technology Evaluation, Room 1093
Bureau of Industry and Security
D.
U.S. Department of Commerce
1401 Constitution Avenue, NW
Washington, DC 20230
Please do not submit completed surveys to this address; all surveys must be submitted electronically.
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Section 1.a
Company/Organization Name*
Street Address*
City*
State*
Zip Code*
Phone Number*
Fax Number
Website
Name*

Next Page
Company/Organization Information

Point(s) of Contact for this Survey's Completion
Title*
Phone Number*
State*

Comments:
* Indicates a required field
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Email Address*

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Section 1.b

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Company/Organization Respondent Type
Please choose the Respondent Type that best describes your company/organization*

Comments:
* Indicates a required field
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Section 2

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DMSMS Solutions

In Sections 3 through 12 your organization will be asked to identify and describe your DMSMS activity according to your
chosen SOLUTIONS OVER THAT PAST TWO YEARS. Ten categories have been identified:
Section 3:

Approved Parts

Section 4:

Life of Need Buy

Section 5:

Repair, Refurbishment or Reclamation

Section 6:

Extension of Production or Support

Section 7:

Simple Substitute

Section 8:

Complex Substitute

Section 9:

Development of a New Item or Source

Section 10:

Redesign - NHA

Section 11:

Redesign Complex/System Replacement

Section 12:

Other DMSMS Solution

Your organization will also be asked to provide information regarding the characteristics of each solution:

Part Type
What kind of part does DMSMS problem
concern? Options include:
Assembly
Component
Raw Material
Software

Part Commodity

Operating Environment

Does the part qualify as Electrical,
Electronics or Mechanical?

Please identify the environment the DMSMS
product/solution functions in. Options include:
Aviation
Benign or Non-Tactical
Ground
Shipboard
Space
Undersea

If a solution has been used for multiple projects, solution costs should be averaged.
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Section 3

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Approved Part

Approved Part
Definition:

The obsolescence issue is resolved by the use of items already approved on the drawing and still in production.

If this product/solution was not used, please select "Not Applicable" to the right and proceed to
the next section.
Indicate which Armed Forces Services you provide this product/solution to. (Select all that apply)
A

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Identify your product/solution's application characteristics. If multiple parts, commodities or environments were used, please indicate all
types for which information is being provided.
Part Type 1
Commodity 1
Environment 1
B
Part Type 2
Commodity 2
Environment 2
Part Type 3
Commodity 3
Environment 3
You may provide answers that cover more than one DMSMS issue by providing the average costs for the section below.
C

Number of Incidents:

Reported Costs Are:

Indicate the average duration time for resolution (in weeks):
Please enter the costs associated with each applicable category to the best of your knowledge.
Refer to the DMSMS Survey Definitions for examples of each category.
Solution Engineering and Design
Solution Implementation

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

Total Solution Costs:
Comments: Please provide some additional details about the product the DMSMS issue affected and the solution used. (This will allow us
to better understand the nature of your solution).
E

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Section 4

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Life of Need Buy
A sufficient quantity of the item is purchased to sustain the product until its next technology refresh or the
discontinuance of the host assembly. Because this solution uses an approved item, no testing or drawing changes
Life of Need Buy
are required. The source of supply can be residual stock from the original manufacturer, shelf stock from
Definition:
distributers, sponsor-owned material, etc. Costs for packaging, storage, and transportation should be considered
in the BCA for selecting solutions.
If this product/solution was not used, please select "Not Applicable" to the right and proceed to
the next section.
Indicate which Armed Forces Services you provide this product/solution to. (Select all that apply)
A

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Repair, Refurbishment, or Reclamation
Section 5
Repair, Refurbishment, or
The obsolescence issue is resolved by instituting a repair or refurbishment program for the existing item or
Reclamation
assembly, whether a depot repair, a repair contract with the original manufacturer, or support from a third party.
Definition:
If this product/solution was not used, please select "Not Applicable" to the right and proceed to
the next section.
Indicate which Armed Forces Services you provide this product/solution to. (Select all that apply)
A

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Extension of Production or Support
Section 6
Extension of Production or The supplier is incentivized to continue providing the obsolete items. This may involve long-term agreements to
Support
procure specific quantities of parts. One-time costs may be associated with setting up this solution. Those costs
Definition:
should be included in any cost and cost avoidance calculations.
If this product/solution was not used, please select "Not Applicable" to the right and proceed to
the next section.
Indicate which Armed Forces Services you provide this product/solution to. (Select all that apply)
A

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Section 7

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Simple Substitute

Simple Substitute
Definition:

The item is replaced with an existing item that meets all requirements without modification to either the item or
its NHA and requires only minimal qualification. Associated costs are largely administrative.

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Section 8

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Complex Substitute

Complex Substitute
Definition:

A replacement item that has different specifications, but requires no modification of the source product or the
NHA, is researched and validated.

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Qualification of New Items
Software Development or Modification

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Section 9

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Development of a New Item or Source

Development of a New
Item or Source
Definition:

A replacement product is developed that meets the requirements of the original product without affecting the
NHA. Nonrecurring engineering or other development-related activities will likely be required. The new product
may be an emulation, a reverse-engineered product, or a product developed as a replacement using a different
manufacturer but the original manufacturing designs and processes.

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Section 10

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Redesign - NHA

Redesign - NHA
Definition:

The affected item’s NHA must be modified. Only the NHA is affected, and the new design will not affect anything
at a higher level in the system.

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Redesign - Complex/System Replacement
Section 11
Redesign - Complex/
A major assembly redesign affects assemblies beyond the obsolete item’s NHA and may require that higher-level
System Replacement
assemblies, software, and interfaces be changed.
Definition:
If this product/solution was not used, please select "Not Applicable" to the right and proceed to
the next section.
Indicate which Armed Forces Services you provide this product/solution to. (Select all that apply)
A

Army

Navy

Air Force

Marines

Other Department of
Defense

Other
(List in Comments)

Number of Incidents:

Reported Costs Are:

Startup Costs
Tooling/Equipment/Software

Computer Programs/Documentation
Interim Support
Supply/ Provisioning Data
Support/Test Equipment
Technical Manuals
Training/Training Equipment
Installation Costs

Total Engineering and Design Costs

Total Implementation Costs

Engineering/Engineering Data Revision
Qualification of New Items
D

Software Development or Modification

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Section 12

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Other DMSMS Solution

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