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Operating and Support (O&S) Cost Management Guidebook

Updated 3/10/2016

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Operating and Support (O&S) Cost Management Guidebook
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According to the ASD(L&MR), “this guidebook highlights the criticality of early O&S cost management through product design and the Product Support Strategy (PSS). The guidebook helps users focus their requirements, design and product support planning activities to identify and pursue early procedural means to mitigate O&S costs and specific tools to reduce O&S costs. Additionally, the guidebook provides a set of tools for effectively communicating O&S cost assumptions, comparisons, and risks to support acquisition decisions and program reviews….This guidebook is for program, business, engineering, requirements and life cycle logistics management professionals. It provides an approach to O&S cost management with an emphasis on early design trades that influence O&S costs. The Program Manager (PM) and his/her supporting staff, including the Product Support Manager (PSM), Business Financial Manager (BFM), and Chief Engineer, will benefit most from this guidance. Additionally, Component acquisition, resource and requirements officials will benefit during the pre-program phase, as they set the conditions for effective and affordable life cycle product support. This guidebook complements existing guidance for the PM and PSM in the task of planning and executing affordable product support.”

This guidebook is complemented by:

This guidebook directly influences the:

This DoD Operating and Support (O&S) Cost Management Guidebook is not to be confused with the DoD Operating and Support (O&S) Cost Estimating Guide. They are separate and distinct documents, issued by different DoD organizations, and intended to complement one another. To clarify: 

Finally, this guidebook is intended to be regularly updated. Users are encouraged to submit recommended changes and other feedback by selecting the Feedback tab at the bottom of this screen.


This document is part of an Integrated Product Support Guidebook Suite and serves as an important resource for defense acquisition workforce members to use in crafting and successfully executing life cycle product support and sustainment strategies.