Understanding and Implementing Cost Per Day of Availability (C/DA)
Calculating Cost Per Day of Availability: A Transformative Metric for Defense Sustainment
With the recent release of DoD Instruction 3110.05, Cost Per Day of Availability (C/DA) now joins Operational Availability (Ao) and Material Availability (Am) as critical metrics in defense sustainment. Guided by the Assistant Secretary of Defense for Sustainment, C/DA goes beyond assessing effectiveness alone; it offers a new lens on cost-efficiency in maintaining mission-ready assets.
Why C/DA Matters in Today’s Defense Landscape:
• Efficiency Measurement: C/DA provides transparency into the true cost of keeping assets available for missions, supporting data-driven and impactful decision-making.
• Strategic Planning Alignment: C/DA enables the DoD and defense partners to align budgets with availability goals, integrating performance and cost targets for a more balanced approach.
• Future-Focused Advantage: With C/DA gaining traction as a key performance indicator (KPI) in defense contracts, early adoption provides a competitive edge in sustainment planning.
A Transformative Efficiency Metric for Defense Sustainment
The DoD's release of Instruction 3110.05 on April 24, 2024, introduces C/DA as an efficiency metric to assess sustainment efforts. This addition complements Operational Availability (Ao) and Material Availability (Am), delivering a holistic approach to asset readiness and cost management for the Primary Mission Asset Inventory (PMAI).
Key Components of C/DA:
1. Calculation: Derived by dividing Total Maintenance Cost by Days of Availability, highlighting the cost per available day.
2. Asset Categories: Differentiates between Total Asset Inventory (TAI) and PMAI, focusing specifically on assets actively assigned to missions.
3. Application Example: For a fleet with 90% operational availability, C/DA of $230.33 per day provides a targeted metric for budgeting and sustainment.
Implementing C/DA with Opus Suite
Opus Suite offers a comprehensive framework to implement C/DA within sustainment strategies:
1. OPUS10: Optimizes logistics and maintenance strategies to meet Ao and Am targets, essential for calculating C/DA.
2. SIMLOX: Simulates operational scenarios to validate Ao over time, enhancing readiness and availability metrics.
3. CATLOC: Tracks detailed maintenance costs, facilitating accurate C/DA calculations by aligning cost with availability.
Challenges and Considerations
• Definitional Ambiguity: Precise definitions for terms such as “Day” and PMAI are essential to ensure consistent C/DA calculations.
• Comprehensive Costing: Unaccounted costs like storage and transportation can impact C/DA, necessitating clear cost categorization.
• Forecasting: Opus Suite enables scenario forecasting to support early acquisition processes and project long-term sustainment requirements.
Implications for the Defense Industry
The adoption of C/DA as a KPI in defense contracts will impact OEM agreements and sustainment partnerships, creating a need for transparency in cost and availability metrics. By aligning with C/DA standards, defense partners can achieve cost-effective, mission-ready solutions.
Conclusion and Next Steps
C/DA offers a comprehensive efficiency metric, enhancing defense sustainment by balancing readiness with cost-effectiveness. Organizations can integrate C/DA into their strategy with Opus Suite for streamlined sustainment planning.
• Get Started with Opus Suite for C/DA: Existing users can leverage CATLOC and SIMLOX to incorporate C/DA metrics seamlessly.
• Engage with the DoD: Defense stakeholders should clarify definitions within DoDI 3110.05 to ensure uniform application across mission types.
