<p> Systems Engineering Cost Estimation: System-of-Systems</p><p>By Jon K. Ilseng</p><p>21st International Forum on COCOMO and Software Cost Modeling</p><p>November 7-9, 2006</p><p>1 ABSTRACT</p><p>Systems Engineering is an interdisciplinary approach and involves integrating various engineering disciplines. Systems Engineering involves the use of all diverse engineering disciplines in a very structured, disciplined approach. The Systems Engineering process involves using proven and new technologies. Part of the Systems Engineering process involves estimating the program dollar costs for Systems Engineering tasks for the entire life of the program. </p><p>How one estimates the Systems Engineering costs for a system, subsystem, module, product, component varies. It depends on how you define a system, subsystem, module, product or component. Each of these could be interpreted as a “system level of interest”. Currently, the</p><p>Systems Engineering costs are being estimated for all these “system levels of interest”. The primary level where Systems Engineering costs are normally estimated is at the system level, or the “system-of-interest”. There are many Systems Engineering cost estimation techniques for a</p><p>“system-of-interest” and they are as follows:</p><p>1. Heuristic and rule of thumb1;</p><p>2. Expert opinion;2</p><p>3. Case studies;3</p><p>4. Top down and design-to-cost;4</p><p>5. Bottoms up and activity based;5</p><p>1 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model 2 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model 3 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model 4 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model 4 5 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model</p><p>2 6. Parametric cost estimation methods;6</p><p>The Systems Engineering cost estimation technique most currently used, and regarded as the most accurate, is the parametric cost estimation method. The Raytheon Intelligence and</p><p>Information Systems (IIS) Business Unit Garland, Texas site developed a proprietary parametric cost estimation method cost estimation called SECOST. SECOST is an enabling framework that uses the open parametric Constructive Systems Engineering Cost Model (COSYSMO).</p><p>Currently, SECOST is used to prepare Systems Engineering cost estimates for a “system-of- interest”. The Raytheon IIS Garland, Texas site and the five Network Centric Systems Business</p><p>Units sites are currently using SECOST as “second opinion” bids. A “system-of-interest” is defined by its architectural structure or levels of responsibility. A “system-of-interest” could be a very low frequency antenna on an United States (U.S.) Navy destroyer, a tail warning system on an U.S. Air Force bomber aircraft, or a joint tactical radio used by the U.S. Army. It all depends how one defines the “system-of-interest”.</p><p>Within the U.S. Department of Defense, there are many programs that are classified as</p><p>“system-of-systems”. A “system-of-systems” is defined as “the mix of existing and new systems into a system of systems capability greater than the sum of the capabilities of the constituent parts.”7 Estimating the Systems Engineering costs for a “system-of-systems” is a little more complex than estimating the costs for a “system-of-interest”. What if the SECOST Tool was used to estimate the Systems Engineering costs for a “system-of-systems”? What are the difficulties and complexities? How would a Raytheon Systems Engineer use the SECOST Tool to estimate these Systems Engineering costs? This paper explains how the SECOST Tool would be used to estimate these costs for a “system-of-systems”. </p><p>6 Ricardo Valerdi dissertation, August 2005, The Constructive Systems Engineering Cost Model</p><p>7 http://akss.dau.mil/dag/Guidebook/IG_c4.2.6.asp</p><p>3 4</p>