Operational Cost Methodology

Problem

  • Technical Operations Service Units lacked a standardized way of calculating operational costs of the 40,000 NAS facilities/systems.

Approach

  • Identified data elements for direct and indirect costs
  • Used authentic data sources (DELPHI Payroll, NDC, FSEP, and Program Office Cuff records)
  • Attributed facility costs using location ID and Facility type available from above data sources
  • Developed a standard repeatable approach that could be applied to all Facility types
  • Validated cost methodology with ATO-Finance and pilot facility representatives
  • Extracted data from data sources and apply approved methodology
  • Performed audit check to ensure fair and equitable allocation of costs
  • Baselined Operations Cost Methodology process

Result

  • Methodology to produce standardized costing reports available by Directorate, facility, task or circuit for direct and indirect cost.
  • Methodology reviewed and approved by ATO Finance.
  • Methodology used for several responses to congressional inquirie
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