Transformation in Federal Cost Estimating

AMC Transforms Cost Estimating at PEO,
Successfully Implementing ACEIT for First Time!

AMC’s Financial Management Practice has successfully transformed the way PEO DHMS conducts cost estimations for its billion-dollar portfolio. Program Executive Office Defense Health Management Systems manages all DOD/DHA programs tied to the implementation of electronic health records.  AMC’s Cost Estimation experts successfully implemented the Automated Cost Estimating Integrated Tools (ACEIT) platform to streamline cost estimation tasks, enhance the defensibility of estimates, and promote improved data-driven-decisions by budgetary and acquisition decision makers.  AMC’s experienced CCEA-certified cost estimators and seasoned financial consulting experts created a new normal for how cost estimating is approached and integrated with other stakeholders in the PEO, namely Financial Planning and Analysis (FP&A) analysts, program managers, budgeteers, and contracting specialists. 

AMC’s mission remains our commitment to being a Trusted Partner to the PEO, delivering exceptional advisory services. Our Cost Estimating and FM Consulting SMEs take this mission very seriously, as our goal remains to “transform the PEO into a world class technology organization.” This means introducing best practices from both commercial and federal FM spaces, delivering high quality advisory support, supplying reliable data analysis, creating defensible cost estimates, conducting high-end risk analyses, and ensuring our customers secure the funding they need to successfully deliver their end products and capabilities. 

Below, we underscore the challenges identified at the project’s inception, highlight the integrated solutions Team AMC has implemented to date, and express some of the impact indicators that have taken shape thus far.

Problems Identified: 

  • The PEO’s cost estimation efforts initially lacked standardization across programs, failed to integrate data effectively, contained overly manual processes, and were unsuccessful in achieving the collaboration necessary to meet its goals.  These deficiencies led to inadequate risk management for both finance and acquisition decision makers. 
  • Cost estimations across multiple programs lacked standard documentation, utilized disparate computing methods, and were less defensible to DOD and Congressional inquiries. 
  • The PEO was directed via audit to implement ACEIT across its programs, but had not been able to deploy the software successfully to either its government or contractor personnel.  
  • Microsoft Excel exhibited limitations in reporting, data aggregation of multiple estimates, and regression analysis. 

Solutions Being Implemented: 

  • AMC’s FM and cost estimating SMEs analyzed the cost estimation environment, its processes and operations, and desired outputs to understand the current state of how cost estimates were being formulated.  
  • As a result of this analysis, our experts worked with stakeholders to create more consistent financial data inputs.  
  • Our FP&A analysts and cost estimating experts utilized ACEIT reporting modules to enhance the documentation and overall reliability of cost estimates.  
  • We leveraged a seamless consolidation for Program and Portfolio views of costing information for Program Objective Memorandum (POM) development. 
  • Our SME’s performed enhanced regression analysis through Monte Carlo simulations in a single file, enhancing data inputs and tracking. 
  • We improved reporting to government decision makers via risk charts, delta reports, risk allocation, tornado charts, and cost drivers. 

Outcomes Observed (ongoing): 

  • Improved efficiency in the cost estimating processes across three major programs.  
  • Enhanced consistency and structure in cost analysis, gaining the desired consensus between stakeholders.  
  • Supported and completed well-documented, dependable, risk-adjusted, and defendable cost estimates for a $1B+ annual portfolio.
  • Improved alignment between two critical offices with the mission of being a trusted partner in delivering superior consulting and advisory services.  
  • Lauded contribution to PEO, securing funding for multiple portfolios, enabling successful delivery of dozens of end products and capabilities.  
  • Successfully integrated ACEIT and migrated legacy cost estimates in under six months, implementing the tool to efficiently assemble cost estimates and create more defensible budgets. 

AMC Awarded DHA MP2BET Support Services Contract 

AMC is thrilled to announce that it has been awarded the prestigious DHA MP2BET Support Services contract. This contract marks a significant milestone for AMC as it further solidifies its position as a leading provider of innovative and comprehensive support services within the defense health sector.

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Transformation in Federal Cost Estimating

Andrew Morgan Consulting enables CFOs in organizational transformation by providing a comprehensive range of FM solutions. Our capabilities address key challenges in the fast-paced marketplace, offering optimized value, quick implementation, and iterative improvement.

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