Abstract : This quarterly status report contains the results of the Cost Estimation Study, conducted for the Naval Center for Cost Analysis (under the auspices of the Office of Naval Research) during the period of performance 12 January 1987 to 04 April 1987. The effort described in this quarterly status report focuses upon the following three areas addressed in Task III: (1) The collection of current AVIONICS data and subsequent derivation of preliminary CER (Cost Estimating Relationship) prototypes for ultimately calibrating the SASET model parameters. This includes the generation of SASET productivity factors and complexity multipliers; and (2) The categorization and organization of functional sizing data for formulating a suitable AVIONICS data base. This AVIONICS data base will be utilized in the SASET model in generating cost and schedule outputs; and (3) The calibration of the SASET model AVIONICS data base to ensure verification and validation of all SASET model parameters. In this respect, a total review of SASET requirements has begun. The intent is to update the SASET REQUIREMENTS document within the next quarterly reporting period.