The purpose of the CCDR system is to serve as the primary cost database for most DoD cost estimating efforts. DoD components use the data collected in the CCDR system to:
- Prepare program cost estimates for major system acquisition programs
- Develop independent Government cost estimates in support of cost and price analyses and to estimate future contract costs; and
- Develop estimates to support long range planning efforts.
Detailed guidance related to CCDRs is contained in DoD Manual 5000.4-M-1, the Contractor Cost Data Reporting (CCDR) Manual.
Specific reporting requirements are based on a contract's designated acquisition program. There are four categories of programs.
- Category I - all major defense acquisition programs that are estimated to require an eventual total research, development, test, and evaluation (RDT&E) expenditure of more than $365 million, or an eventual total procurement expenditure of more than $2.2 billion in constant fiscal year 2000 dollars. Note, these are not annual amounts or contract values. These are total program outlays. Also, the Government can designate other programs as Category I based on "special interest".
- Category IA - all major automated information systems that are estimated by the DoD component head to require program costs (all appropriations) in any single year in excess of $32 million, total program costs in excess of $126 million, as well as other programs designated as Category IA due to special interest.
- Category II - all major systems not meeting the criteria for Category I, but estimated to require an eventual total expenditure for RDT&E of more than $140 million, or an eventual total procurement expenditure of more than $660 million in constant fiscal year 2000 dollars and other programs designated as Category II due to special interest.
- Category III applies to programs not meeting the criteria for Categories I, IA, or II.
For contracts falling into Category I and IA, CCDRs are required when the contract (or subcontract) value exceeds $50 million in constant fiscal year 2002 dollars, regardless of contract type. CCDR reporting is not required for contracts priced below $20 million in constant fiscal year 2002 dollars. The CCDR requirement on high-risk or high-technically-interest contracts priced between $20 and $50 million in constant fiscal year 2002 dollars is left to the discretion of the Government.
Contracts under Categories II and III acquisition programs, meeting the Category contract dollar thresholds for CCDR reporting, also require CCDR reporting. However, specific program reporting requirements are left to the discretion of the military services. The level of detail and frequency of reporting for Category II and III programs is normally less stringent than the level of detail and frequency required for Category I programs.