Working with Defence and across industry more broadly will enable us to develop a robust and complete cost development, cost estimation and cost assurance method.
In every cost estimation activity, we ensure that the products we develop (or assure) for Defence adhere to the following principles:
Furthermore, our cost estimations are fully annotated with sources, assumptions, confidence levels, and other relevant qualifications.
Our cost estimation and analysis techniques vary from a top-down approach or decomposition of engineering estimates, a bottom-up approach such as build-up of actual/historic costs, assessment of price data, or a mixed approach such as analogy/comparison of previous estimates and expert opinion.
We are often asked to 'go beyond' traditional cost estimation to identify opportunities to achieve cost efficiencies.
In doing so, we determine the most appropriate approach to use, including reasons for selection and possible risks where an alternative approach may have been applied. This will ensure that Defence can have confidence in the product and assessment produced.
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