Cost as An Independent Variable (CAIV) Training

Over time, it is common for programs to experience both budget and schedule “creep” due to the desire of customers and contractors to improve performance. CAI/SISCo's Cost As an Independent Variable seminar discusses how the CAIV process helps manage these risks, ensuring that key requirements are met in a manner that is cost-effective for the customer and profitable for the contractor. Key topics include:

• Cost As an Independent Variable – a functional definition
• How CAIV fits into the overall business development process
• The role of CAIV in the Risk Management process
• How to implement effective CAIV processes
• CAIV as a corporate Best Practice

Approach

Cost As an Independent Variable is presented as a 3-segment, half-day seminar.

• Segment 1: Setting the Stage
• Segment 2: Executing CAIV
• Segment 3: Managing CAIV

The seminar is targeted at senior opportunity capture personnel and is led by an experienced PTW and CAIV practitioner.

Segment 1 provides an introduction to the Cost As an Independent Variable process in the Federal (mostly DoD) marketplace. CAIV is defined and compared to other costing techniques. Significant policies are reviewed, appropriate and inappropriate uses for CAIV are discussed, and roles and responsibilities are presented. The segment concludes with a discussion on the role of CAIV within the larger risk management process. Approximately 1 hour of class time is spent on Segment 1.

Segment 2 defines the key concepts of CAIV, including:

• Goal setting and cost targeting in the requirements process
• Cost modeling
• How and when CAIV is used by Integrated Product Teams
• The role of Trade Studies in CAIV

The emphasis in this segment is on the use of the CAIV process by customers in developing realistic requirements, and by contractors in developing a resulting solution. We will spend approximately 1.5 hours of class time on Segment 2.

In Segment 3, we illustrate how CAIV is used as a management tool in a post-award environment. Key topics covered include:

• Tracking and Reporting
• Use of subcontractor flow downs to achieve desired cost goals
• CAIV best practices
• Succeeding with CAIV

We will spend approximately 1 hour of class time on Segment 3.

A question and answer session will conclude the seminar. Students receive hard copy handouts of all slides plus a CD containing soft copies of the slides and the models that are used to solve class problems.

(This course may be combined with our Earned Value Management and the Evolving Acquisition Environment seminar to create a full-day session. This combination is offered at a significant discount over the cost of each course purchased separately. Contact CAI/SISCo for details).

To request a proposal or more information about our training services,
please e-mail David Collins or call him at (888) 840-5959.