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PRICE Systems was founded in 1975 as a business within the RCA Corporation. It is generally acknowledged as the earliest developer of parametric cost estimation
software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...
. PRICE Systems’ cost estimating software was first developed in the 1970s when David Shore, a vice president in RCA's Government Group discovered that Frank Freiman, in the purchasing department, was able to predict the cost of military new systems with considerable accuracy before design was completed and a parts breakdown was available for cost estimation. Mr. Shore teamed Freiman with William Rapp, who transferred Freiman's relationships to software that could be run on a computer. This was used in a proposal RCA made to the USAF. When questioned by the Air Force, a presentation was made to them by Shore, Freiman and Rapp. The USAF demanded that RCA make this capability available to the entire industry as a condition for accepting its use. Shore established a new group to be headed by Freiman to develop and run an organization which Freiman named Programmed Review of Information for Costing and Evaluation (PRICE). PRICE related the basic costs of
engineering Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...
and production to parameters that included a specification profile of units to be built, amount of work to be performed, the allowed
schedule A schedule (, ) or a timetable, as a basic time-management tool, consists of a list of times at which possible tasks, events, or actions are intended to take place, or of a sequence of events in the chronological order in which such thing ...
and
resources ''Resource'' refers to all the materials available in our environment which are Technology, technologically accessible, Economics, economically feasible and Culture, culturally Sustainability, sustainable and help us to satisfy our needs and want ...
available. It relied on the use of parametric relationships obtained through curve-fitting procedures that had been performed on a historical repository of significant cost data. Originally a division of RCA and later a
strategic business unit A strategic business unit (SBU) in business strategic management, is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though ...
of
Lockheed Martin The Lockheed Martin Corporation is an American Arms industry, defense and aerospace manufacturer with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta on March 15, 1995. It is headquartered in North ...
, PRICE Systems is considered the pioneer in the science of parametric modeling because the PRICE parametric models were the first generally available computerized cost estimation software. PRICE became an independent, privately held company in 1998. Anthony DeMarco is the President and Managing Member of PRICE Systems L.L.C.


Chronology

The company's key dates are as follows: *1969 RCA's Frank Freiman invents parametric cost modeling for estimating acquisition and development of hardware systems *1973 Frank Freiman founds PRICE Systems as part of RCA *1986 GE acquires RCA; RCA PRICE Systems becomes GE PRICE Systems *1992
Martin Marietta The Martin Marietta Corporation was an American company founded in 1961 through the merger of Glenn L. Martin Company and American-Marietta Corporation. In 1995, it merged with Lockheed Corporation to form Lockheed Martin. History Martin Marie ...
acquires
GE Aerospace General Electric Company, doing business as GE Aerospace, is an American aircraft engine supplier that is headquartered in Evendale, Ohio, outside Cincinnati. It is the legal successor to the original General Electric Company founded in 1892, w ...
; GE PRICE Systems becomes Martin Marietta PRICE Systems *1995
Lockheed Corporation The Lockheed Corporation was an American aerospace manufacturer. Lockheed was founded in 1926 and merged in 1995 with Martin Marietta to form Lockheed Martin. Its founder, Allan Lockheed, had earlier founded the similarly named but otherwise-u ...
merges with Martin Marietta to form Lockheed Martin; PRICE Systems becomes a division of Lockheed Martin *1998
Management buyout A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual. Management- and/or leveraged buyouts became noted phenomena of 19 ...
from Lockheed Martin; PRICE Systems LLC formed as independent company


Technology

In 1976 PRICE introduced its Hardware Life-Cycle Cost Model. This was followed in 1977 by a
Software Development Software development is the process of designing and Implementation, implementing a software solution to Computer user satisfaction, satisfy a User (computing), user. The process is more encompassing than Computer programming, programming, wri ...
Cost Model, one of the oldest and most widely used software parametric models for large-scale software development projects. In 1983 the company launched its first application for microcircuit cost modelling. ;TruePlanning In 2003 PRICE released TruePlanning, a proprietary parametric model that estimates the scope, cost, effort, and schedule for software projects. Parametric estimating models are mathematical models containing cost estimating relationships (CERs) developed through
data collection Data collection or data gathering is the process of gathering and measuring information on targeted variables in an established system, which then enables one to answer relevant questions and evaluate outcomes. Data collection is a research com ...
and regression analysis. The TruePlanning Software model provides activity-based parametric models to aid in the estimation of new software development, integrations of
Commercial Off-the-Shelf Commercial-off-the-shelf or commercially available off-the-shelf (COTS) products are packaged or canned (ready-made) hardware or software, which are adapted aftermarket to the needs of the purchasing organization, rather than the commissioning of ...
(COTS) Software and life cycle
maintenance The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure and supporting utilities in industrial, business, and residential installa ...
costs. Today, TruePlanning is used to estimate the costs, schedule, effort, and benefits for: * Hardware Life Cycle programs (mechanical and electronic) * Software projects * IT Projects *
System of Systems The term system of systems refers to a collection of task-oriented or dedicated systems that pool their resources and capabilities together to create a new, more complex system which offers more functionality and performance than simply the sum of ...
configurations


Customers

Customers include DOD Program Office,
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,
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NA,
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,
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,
NASA The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the federal government of the United States, US federal government responsible for the United States ...
, US Naval Air Systems Command (NAVAIR),
Penn State #Redirect Pennsylvania State University The Pennsylvania State University (Penn State or PSU) is a Public university, public Commonwealth System of Higher Education, state-related Land-grant university, land-grant research university with ca ...
Applied Research Laboratories (ARL),
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and
United Technologies Corporation United Technologies Corporation (UTC) was an American multinational corporation, multinational list of conglomerates, conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous are ...
.Price Systems L.L.C
Customers Overview
, PRICE Systems, 2008.


References

{{DEFAULTSORT:Price Systems RCA brands Software engineering costs Cost analysis software