Do the reductions to the baseline TOC cost have to be specific, or can an IPT lead simply place an objective (like 5% reduction) to the baseline?
We believe the reductions need to be specific, based on the cumulative net cost avoidance/savings associated with a program’s CAIV or CWR initiatives (per encl (1) of AIR-1.0’s policy memo dated 31 Jul 98 on implementation of TOC baselines). The goals should be achievable based on executable initiatives. The exception would be an early development program like JSF that needs to work the cost and operational trades process. For an early development program percentage reductions would probably be more appropriate. 8. A majority of the additional costs we are capturing with the TOC effort are not controlled by the Program Manager, and the Program Manager is being asked to sign up to goals and thresholds including these costs. Most of the initiatives we are capturing will aim to reduce either acquisition or O&S costs that would have been captured under our standard O&S estimate. In a few weeks, we should be able to quantify for you the percent of costs for the V-22 that the program manager
