Publications

This report is the product of the System Analysis and Studies (SAS) Task Group SAS-054 review of NATO and Partner nations’ cost forecasting methods and models. The Task Group’s core objectives were to understand NATO and Partner nations’ methods and models for life cycle costing, and to promulgate best practice within the NATO Phased Armaments Programming System (NAPS). The SAS-054 report provides a comprehensive view on the application and use of life cycle costing from an early conceptual phase in the product life cycle through to the disposal phase. It provides illustrations on the types of life cycle cost studies that can be conducted and examples to demonstrate the benefits of such analysis. The treatment of uncertainty and risk within the context of developing the life cycle cost estimate is also explained within the report. The report concludes with a number of recommendations to improve the use and understanding of life cycle costing in the decision making process.