AR 11-18 — The Cost And Economic Analysis Program
AR 11-18 governs the Department of the Army Cost and Economic Analysis Program and its support for Army decision making.
- Publication number: AR 11-18
- Title: THE COST AND ECONOMIC ANALYSIS PROGRAM
- Date: 08/29/2019
- Proponent: ASA (FM&C)
- Status: ACTIVE
View AR 11-18 on armypubs.army.mil
AR 11-18 addresses cost and economic analyses, the Planning, Programming, Budgeting, and Execution System, and cost-benefit analysis. It assigns duties to Army officials and requires cost-benefit analyses for specified resource decisions.
Topics covered
- Cost and economic analyses
- Cost-benefit analysis requirements
- Planning, Programming, Budgeting, and Execution System
- Army Cost Review Board
- Army cost position
- Independent cost estimates
Questions and answers
When does a cost-benefit analysis apply to an unfunded requirement or new program proposal?
When an unfunded requirement or a new or expanded program proposal is submitted to the SECARMY, Chief of Staff of the Army, Under Secretary of the Army, or Vice Chief of Staff of the Army. (paragraph 3)
When is a cost-benefit analysis appropriate for an ACOM, ASCC, or DRU decision?
A general guideline is that a C BA is appropriate for any decision involving $10 million or more in any one fiscal year. (paragraph 3)
What must the Army provide to manage resources for Army programs and activities?
The Army will provide timely and sufficient cost and economic analyses to support the effective allocation and management of resources for Army programs, materiel systems, automated information systems, facility acquisitions, installation services, capital budget investments, production base support, construction projects, forces, and activities. (paragraph 2)
What do program executive officers and program managers have to provide for acquisition and PPBES processes?
Provide program and cost data (to include a CARD) and contract data (to include cost performance reports), and provide validated cost and economic analyses and other cost comparisons to support the acquisition and PPBES processes. (paragraph 4)
What must commanders of ACOMs, ASCCs, and DRUs establish and maintain?
Establish and maintain sufficient cost and economic analysis expertise to support acquisition and resource allocation processes, and review and validate cost and economic analyses and other cost comparisons for currency, reasonableness, completeness, and compliance with DOD and Army guidance. (paragraph 3)