Sources of weapon system cost growth: analysis of 35 major defense acquisition programs
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Bibliographische Detailangaben
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Santa Monica, CA Rand Corp. c2008
Schlagworte:
Online-Zugang:FAW01
FAW02
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Beschreibung:Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002
Includes bibliographical references (p. 89-90)
Introduction -- Study approach -- Cost growth selected programs -- Summary and recommendations -- Appendix A: Cost growth of individual programs -- Appendix B: Weighted cost growth -- Appendix C: Trigger events -- Appendix D: OSD guidance and definitions of the SAR cost-variance categories
Previous studies have shown that the Department of Defense (DoD) and the military departments have historically underestimated the cost of new weapon systems. Quantifying cost growth is important, but the larger issue is why cost growth occurs. To address that issue, this analysis uses data from Selected Acquisition Reports to examine 35 mature, but not necessarily complete, major defense acquisition programs similar to the type and complexity of those typically managed by the Air Force. The programs are first examined as a complete set, then Air Force and non-Air Force programs are analyzed separately to determine whether the causes of cost growth in the two groups differ. Four major sources of cost growth were identified: (1) errors in estimation and scheduling, (2) decisions made by the government, (3) financial matters, and (4) miscellaneous sources. Total (development plus procurement) cost growth, when measured as simple averages among the program set, is dominated by decisions, which account for more than two-thirds of the growth. Most decisions-related cost growth involves quantity changes (22 percent), requirements growth (13 percent), and schedule changes (9 percent). Cost estimation (10 percent) is the only large contributor in the errors category. Less than 4 percent of the overall cost growth is due to financial and miscellaneous causes. Because decisions involving changes in requirements, quantities, and production schedules dominate cost growth, program managers, service leadership, and Congress should look for ways to reduce changes in these areas
Beschreibung:1 Online-Ressource (xxv, 90 p.)
ISBN:0833042890
0833045245
9780833042897
9780833045249

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