CLB 023

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iCatalog Home CLB 023 Software Cost Estimating
(Last Modified:07-Oct-2014)



The Software Cost Estimating module provides an overview of the Software Cost Estimating (SCE) process and highlights key issues. The module comprises the five steps of preparation and review of a software cost estimate: Develop Scope and Approach, Collect and Analyze Data, Develop Estimate Methodology, Consider Risk and Uncertainty and Document and Present the Estimate; also presented are those questions managers should ask at each step to ensure a realistic and defendable estimate.
This module consists of the five steps that are typically involved in Software Cost Estimating. To ensure cost estimation is realistic and defendable, we include questions that managers should ask within each step. Steps and associated objectives are:

Step 1: Define the System and Cost Drivers
  • Identify the purpose and use of a software cost estimate
  • Interpret a Cost Analysis Requirements Description (CARD)
  • Identify cost estimating ground rules and assumptions
  • Ensure that the estimate is based upon the program's Cost Element Structure (CES) and/or Work Breakdown Structure (WBS)
  • Compare different contract types as they impact cost

    Step 2: Collect and Analyze Data
  • Recognize how to identify, collect, analyze, and normalize data

    Step 3: Select a Model
  • Compare and contrast parametric, analogous, and engineering estimate models
  • Identify the constraints that determine the methodology, necessary Cost Estimating Relationships (CERs), and models used in a cost estimate
  • Determine when off-the-shelf cost models are appropriate for use

    Step 4: Develop and Test the Estimate
  • Review the software cost estimate
  • Analyze the final cost estimate for reasonableness and completeness
  • Identify requirement variables with a degree of uncertainty
  • Analyze the range of the values for the variables (probability distribution)
  • Analyze the calculations for their impact on cost, based on the ranges
  • Determine the validity of a confidence interval

    Step 5: Document and Defend the Estimate
  • Identify the criteria and procedures associated with presenting and defending the cost estimate and analysis
  • Describe economic analysis
  • Identify the required supporting documentation for a cost estimate
  • Target Attendees
    The module should prove useful to Cost Estimators, Program Managers, and Systems Engineers.
    Predecessor Course(s) (Acceptable as a substitute for this course until the acceptance date specified below.)
    Predecessor Predecessor Course Title PDS Code Accepted Until
    None None None None
    Course Length
    Approximately 5 hours to complete
    Additional Course Information
    Delivery Mode Continuous Learning
    Equivalent Courses N/A
    ACE Recommended Credits N/A
    PDS Code ZBM
    DAU Public (material/prework) N/A
    Continuing Education Units   0
    Continuous Learning Points  5
    Reservist Retirement Points  1
    Historical Allocations Mouse Over for Past CEU/CLPs
  • (Click Here) for the technical requirements for this course.
  • You have 60 days to complete this course.
  • This course contains an end of module test that must be passed with a 100% score.
  • After passing your exam, please be sure to complete the required Module Survey from the Table of Contents. You will not be graduated from the module until you have completed the Survey. If you experience any difficulty in completing the Survey, please contact the DAU Help Desk to ensure that you receive proper credit.