Blind Validation Study of PRICE TruePlanning and SEER-H
Two of the primary parametric costing tools used to estimate the development and production cost of future spacecraft hardware are PRICE TruePlanning by PRICE Systems, and System Estimation and Evaluation of Resources-Hardware (SEER-H) by Galorath. These are standard tools used by NASA and industry to estimate the cost of new aerospace hardware. This study is an independent verification of the accuracy of these tools and was originally published in 2018. The purpose of this presentation is to circulate the findings of that study among the NASA cost community. Both PRICE Systems and Galorath have completed internal validation studies of their parametric cost estimating tools; however, they only provided the results of the studies and did not detail the exact methods used to perform the validation. In the present study, cost estimators used PRICE TruePlanning and SEER-H to estimate the cost of twelve different past NASA science missions. The estimators were prevented from knowing the actual cost of the missions in an effort to minimize cognitive biases. In the present study, SEER-H had an average error of 23%, median error of -0.3%, with a standard deviation of 43%. PRICE had an average error of 52%, median error of 50%, and standard deviation of 45%. Nine of the twelve mission's actual costs fell within the 80% confidence interval of SEER's probabilistic estimates; however, none of the missions fell within PRICE’s confidence intervals. There were several factors independent of PRICE and SEER-H which may have affected the accuracy of the results in the present study including: uncertainty in the technical data used for the estimates, the methods used to estimate uncertainty in spacecraft component mass and numbers of prototypes, and the experience of the estimators.