In performing the
cost estimate, both top-down and
bottom-up approaches were taken. |
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For the top-down
approach, we began by reviewing the cost to procure similar ships using data
gathered from several Government and Industry sources. We then accounted for changes based on
differing components, displacements or design requirements and thus were able
to arrive at a rough estimate of procurement cost. |
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In using the
bottom-up approach, we arrived at a cost per compartment by using weighting
factors between individual compartment displacements and cost that were
derived from last years cost estimation process. |
|
Both methods yielded
a final cost estimate that were within 10% of each other. For brevity, only the top-down method will
be discussed in the following slides |