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The Impact of Independent Cost Analyses on DOD Acquisition Management

The Impact of Independent Cost Analyses on DOD Acquisition Management PDF Author: John Eugene Wrobel (Jr)
Publisher:
ISBN:
Category :
Languages : en
Pages : 45

Book Description
The purpose of this study was to review the impact of the DOD policy requiring Independent Cost Analyses (ICA). The study consisted of interviews with selected acquisition and cost analysis managers as well as a review of the current literature, including US General Accounting Office reports. Increased system costs have been attributed to poor cost estimating. Since the inception of ICAs, cost growth has been reduced. This reduction would seem to result from the increased emphasis on cost estimates directly related to the high visibility given to the ICA. The study concludes the program manager can use the ICA to offset stresses inimical to his program, and notwithstanding the continued need for better estimating, major improvements in cost control will now have to come from other areas of management.

The Impact of Independent Cost Analyses on DOD Acquisition Management

The Impact of Independent Cost Analyses on DOD Acquisition Management PDF Author: John Eugene Wrobel (Jr)
Publisher:
ISBN:
Category :
Languages : en
Pages : 45

Book Description
The purpose of this study was to review the impact of the DOD policy requiring Independent Cost Analyses (ICA). The study consisted of interviews with selected acquisition and cost analysis managers as well as a review of the current literature, including US General Accounting Office reports. Increased system costs have been attributed to poor cost estimating. Since the inception of ICAs, cost growth has been reduced. This reduction would seem to result from the increased emphasis on cost estimates directly related to the high visibility given to the ICA. The study concludes the program manager can use the ICA to offset stresses inimical to his program, and notwithstanding the continued need for better estimating, major improvements in cost control will now have to come from other areas of management.

A Review of the 'Should Cost' Process and Management Issues of the Process

A Review of the 'Should Cost' Process and Management Issues of the Process PDF Author: Robert Leon Williams
Publisher:
ISBN:
Category :
Languages : en
Pages : 94

Book Description
Should Cost Analysis has become a popular 'catch-phase' with people involved with Dod major systems acquisitions in the 1980's. This analysis technique is generally recognized as an effective tool for the Government to achieve cost reasonableness with negotiated contracts. In an attempt to enable acquisition managers to challenge contractor's cost, Congress has legislated the use of Should Cost analysis on major weapons systems. This thesis examines the Should Cost concept, capabilities of this technique, the Should Cost legislation, and presents several key management issues of Should Cost analysis. The research was conducted through a literature search, supplemented by interviews with DoD ans industry officials. Keywords: Cost estimating. (Theses).

Defense Acquisitions

Defense Acquisitions PDF Author: Michael J. Sullivan
Publisher: DIANE Publishing
ISBN: 1437914128
Category : Technology & Engineering
Languages : en
Pages : 25

Book Description
This review includes the feasibility and advisability of: (1) estab. a process in which the commanders of combatant commands provide input on the capabilities needed to accomplish their missions over 15 years or more; (2) estab. a materiel solutions process for addressing identified gaps in critical warfighting capabilities; (3) revising the acquisition process by estab. shorter, more frequent acquisition program milestones; (4) requiring the milestone decision authority to specify the period of time that will be required to deliver an initial operational capability; (5) estab. a new office to provide independent cost and performance est.; (6) requiring certifications of program status; and (7) modifying the role played by the Chiefs of Staff of the Armed Forces. Illus.

Management of the Department of Defense: Cost estimating and cost reporting in DOD weapon programs

Management of the Department of Defense: Cost estimating and cost reporting in DOD weapon programs PDF Author: United States. Congress. Senate. Committee on Governmental Affairs
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 160

Book Description


Cost Estimating in Support of Contract Negotiations

Cost Estimating in Support of Contract Negotiations PDF Author: United States. Congress. Senate. Committee on Armed Services. Subcommittee on Defense Acquisition Policy
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 104

Book Description


Expanding Operating and Support Cost Analysis for Major Programs During the DoD Acquisition Process

Expanding Operating and Support Cost Analysis for Major Programs During the DoD Acquisition Process PDF Author: Michael Boito
Publisher:
ISBN: 9781977400895
Category : Political Science
Languages : en
Pages : 0

Book Description
"Prepared for the Office of the Secretary of Defense."

The Acquisition Cost-estimating Workforce

The Acquisition Cost-estimating Workforce PDF Author: Georges Vernez
Publisher: RAND Corporation
ISBN: 9780833047649
Category : Business & Economics
Languages : en
Pages : 0

Book Description
To help fulfill a congressional mandate that cost estimates for major defense acquisition programs be performed by properly qualified members of the armed forces or full-time employees of the Department of Defense, RAND researchers conducted a census of the cost-estimating staff in the Air Force's four product centers and three logistics centers. They also held focus groups with a sample of cost estimators. This report presents the results.

Annual Department of Defense Bibliography of Logistics Studies and Related Documents

Annual Department of Defense Bibliography of Logistics Studies and Related Documents PDF Author: United States. Defense Logistics Studies Information Exchange
Publisher:
ISBN:
Category : Military research
Languages : en
Pages : 1140

Book Description


Sources of Weapon System Cost Growth

Sources of Weapon System Cost Growth PDF Author: Joseph George Bolten
Publisher: Rand Corporation
ISBN: 0833042890
Category : History
Languages : en
Pages : 117

Book Description
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.

Military Cost-Benefit Analysis

Military Cost-Benefit Analysis PDF Author: Francois Melese
Publisher: Routledge
ISBN: 131753171X
Category : Business & Economics
Languages : en
Pages : 325

Book Description
This is the first comprehensive book on Military Cost-Benefit Analysis and provides novel approaches to structuring cost-benefit and affordability analysis amidst an uncertain defense environment and cloudy fiscal prospects. Lifting the veil on military Cost-Benefit Analysis, this volume offers several new practical tools designed to guide defense investments (and divestments), combined with a selection of real-world applications. The widespread employment of Cost-Benefit Analysis offers a unique opportunity to transform legacy defense forces into efficient, effective, and accountable 21st century organizations. A synthesis of economics, statistics and decision theory, CBA is currently used in a wide range of defense applications in countries around the world: i) to shape national security strategy, ii) to set acquisition policy, and iii) to inform critical investments in people, equipment, infrastructure, services and supplies. As sovereign debt challenges squeeze national budgets, and emerging threats disrupt traditional notions of security, this volume offers valuable tools to navigate the political landscape, meet calls for fiscal accountability, and boost the effectiveness of defense investments to help guarantee future peace and stability. A valuable resource for scholars, practitioners, novices and experts, this book offers a comprehensive overview of Military Cost-Benefit Analysis and will appeal to anyone interested or involved in improving national security, and will also be of general interest to those responsible for major government programs, projects or policies.