Design-to-Cost Goal

Management concept wherein rigorous cost goals are established during development, and the control of systems costs (acquisition, operating, and support) to these goals is achieved by practical tradeoffs between operational capability, performance, costs, and schedule. Cost, as a key design parameter, is addressed on a continuing basis and as an inherent part of the development and production process. A DTC goal should be in the form of average unit flyaway cost. Also, DTC parameters for operation and support will be selected--parameters that are design-controllable, significantly affect O&S costs, and
can be measured during test and evaluation. Parameters may be expressed in dollars or by other measurable factors, e.g., manpower, reliability, or maintainability. Firm goals and thresholds will be established no later than entry into EMD (Milestone II). This is an in-house goal, almost contractual in nature, between the PM (Service) and the SECDEF. Allocations from this goal will become the contractual DTC goals for contractors supporting the program.

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