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The following Y2K material has been kept available by MITRE for historical purposes only and has not been updated unless noted.


Cost Estimation for Year 2000 Efforts

There is no universal, standard approach that can be used to cost the Year 2000 correction efforts.



Year 2000 correction efforts can generally be categorized into the four steps above. Each system may only require the execution of some of the steps, depending on the nature of the system's Year 2000 problems and the specifics of the system's life-cycle and operational situation. Additionally, some system Year 2000 "fixes" may include hardware replacements and upgrades.

For systems requiring all of the steps, the cost will still be a function of several factors including: the types of Year 2000 problems facing the system, the chosen solutions, the efficiency of the maintenance workforce making the corrections, the languages in the system, the type of application, and the level and complexity of testing required. To get an understanding of how the Year 2000 problems will impact military systems, we analyzed a range of applications from across the services. They included Ground and Airborne Radar Systems, Communications Processing Systems, Command and Control (C2) Planning Systems, and Logistics Support Systems. For these types of systems our analysis showed a range of cost, calculated as a function of the executable lines of code, as follows:

  • Ground and Airborne Radar Systems ($2.02 - $8.52)
  • Communications Processing Systems ($1.23 - $5.54)
  • C2 Planning Systems ($1.22 - $1.84)
  • Logistics Support Systems ($1.02 - $1.39)

However, these costs may not be what real systems experience. For example, if a system is under maintenance with scheduled releases and upgrades, the Year 2000 changes can be rolled into the ongoing changes for testing and fielding purposes, thus avoiding separate Year 2000 activities for these two steps. This is especially significant for systems which require test ranges and test vehicles or that require secure operation and have high availability requirements, since the testing and fielding steps for these systems are extremely expensive and complex.

There is typically more to Y2K remediation than merely finding and fixing errors in software code. In addition to cross-cutting management planning and engineering reviews, it will also be necessary to test all aspects of systems operations throughout the enterprise, not just software, in order to be sufficiently confident that all other major system elements, including COTS components, embedded chips, and interfaces to other systems, are free from Y2K infection.

Even under the fortunate circumstances where very few Y2K software bugs are actually found (i.e., see a very low "dollars per line code"), certain enterprise level costs from management reviews, planning, analysis, engineering assessments, expanded scope of testing, unique installation problems, and documentation should also be added to the software-level costs to arrive at the total cost of Y2K. Additional costs for contingency and backup measures also need to be included in the total cost of dealing with Y2K. Y2K remediation activities may go significantly beyond the labors of the software programming group. In fact, significant Y2K remediation costs could possibly still be incurred in situations where there very little or no software.

For More Information

For more specific details on costing see the Cost Estimate Details. For further costing information, take a look at the February 1997 briefing entitled A Framework for Estimating the Cost of Fixing the Year 2000 Problem and the 2 April briefing and paper entitled Analyzing the Costs of System-of-Systems Year 2000 Problem Resolution on our Briefings page.

See the MITRE Assessment Briefing and Executive Summary for a fuller presentation on the Y2K story.

Page last updated: January 27, 1999   |   Top of page

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