Is Weapon System Cost Growth Increasing

Author : Obaid Younossi
Publisher : Rand Corporation
Page : 142 pages
File Size : 54,5 Mb
Release : 2007
Category : Business & Economics
ISBN : 9780833041357

Get Book

Is Weapon System Cost Growth Increasing? by Obaid Younossi Pdf

In recent decades, there have been numerous attempts to rein in the cost growth of U.S. Department of Defense (DoD) acquisition programs. Cost growth is the ratio of the cost estimate reported in a program's final Selected Acquisition Report (SAR) and the cost-estimate baseline reported in a prior SAR issued at a particular milestone. Drawing on prior RAND research, new analyses of completed and ongoing weapon system programs, and data drawn from SARs, this study addresses the following questions: What is the cost growth of DoD weapon systems? What has been the trend of cost growth over the past three decades? To address the magnitude of cost growth, it examines cost growth in completed programs; to evaluate the cost growth trend over time, it provides additional analysis of a selection of ongoing programs. This sample of ongoing programs permits a look at growth trends in the more recent past. Changes in the mix of system types over time and dollar-weighted analysis were also considered because earlier studies have suggested that cost growth varies by program type and the cost of the program. The findings suggest that development cost growth over the past three decades has remained high and without any significant improvement.

Author : Anonim
Publisher : Unknown
Page : 0 pages
File Size : 54,9 Mb
Release : 2007
Category : Electronic
ISBN : OCLC:1050641884

Get Book

Is Weapon System Cost Growth Increasing? A Quantitative Assessment of Completed and Ongoing Programs by Anonim Pdf

Cost growth in DoD acquisition programs has been a long-standing concern of senior policymakers and members of Congress. In recent decades, there have been numerous attempts to rein in this growth. Some changes involve reforms to the acquisition process, while others entail legislation. The RAND Corporation has a long history of studying cost growth in defense acquisition, with research reaching back to the 1950s.

Author : Mark V. Arena
Publisher : Rand Corporation
Page : 74 pages
File Size : 47,5 Mb
Release : 2006
Category : History
ISBN : 9780833039255

Get Book

Historical Cost Growth of Completed Weapon System Programs by Mark V. Arena Pdf

This report is one of a series from a RAND Project AIR FORCE project, "The Cost of Future Military Aircraft: Historical Cost Estimating Relationships and Cost Reduction Initiatives." The purpose of the project is to improve the tools used to estimate the costs of future weapon systems. It focuses on how recent technical, management, and government policy changes affect cost. This report focuses on the accuracy of cost estimates. For our analysis, we used a very specific sample of Selected Acquisition Report (SAR) data, namely only programs that are complete or are nearly so. The analysis indicates a systematic bias toward underestimating the costs and substantial uncertainty in estimating the final cost of a weapon system. In contrast to the previous literature, the cost growth was higher than previously observed. We also found few correlations with cost growth, but observed that programs with longer duration had greater cost growth and electronics programs tended to have lower cost growth. Although there were some differences in the mean cost growth factors among the military departments, the differences were not statistically significant. While newer programs appear to have lower cost growth, this trend appears to be due to factors other than acquisition policies.

Author : Neil M. Singer
Publisher : Unknown
Page : 42 pages
File Size : 42,5 Mb
Release : 1983
Category : United States
ISBN : UOM:39015005364511

Get Book

Cost Growth in Weapon Systems by Neil M. Singer Pdf

Author : Anonim
Publisher : Unknown
Page : 97 pages
File Size : 49,9 Mb
Release : 1993
Category : Electronic
ISBN : OCLC:227813403

Get Book

An Analysis of Weapon System Cost Growth by Anonim Pdf

Cost growth in weapon system development, one result of the inherent risk of developing advanced systems, has been a prevalent problem for many years. A systematic bias in cost estimates can undermine the basis of resource allocation decisions, an important problem in a tight budget environment. Currently DoD is in this situation. This exploratory research attempts to gain new insight into this old acquisition issue. In particular, our objectives were to quantify the magnitude of cost growth in weapon systems, and identify factors affecting cost growth. A better understanding of the scope of the cost growth problem would provide decisionmakers with an improved basis for mitigating cost growth. Insight into the drivers of cost growth might suggest policy alternatives appropriate to the goal of mitigating cost growth. This research uses a database composed of 197 major weapon systems reporting through the Selected Acquisition Report (SAR) process as of December 1990 to address these issues. While we have quantified the magnitude of weapon system cost growth along a number of dimensions, we could not definitively account for the observed cost growth patterns. Thus, no silver bullet policy option is available for mitigating cost growth.

Author : Anonim
Publisher : Unknown
Page : 0 pages
File Size : 53,7 Mb
Release : 1993
Category : Electronic
ISBN : OCLC:227813403

Get Book

An Analysis of Weapon System Cost Growth by Anonim Pdf

Cost growth in weapon system development, one result of the inherent risk of developing advanced systems, has been a prevalent problem for many years. A systematic bias in cost estimates can undermine the basis of resource allocation decisions, an important problem in a tight budget environment. Currently DoD is in this situation. This exploratory research attempts to gain new insight into this old acquisition issue. In particular, our objectives were to quantify the magnitude of cost growth in weapon systems, and identify factors affecting cost growth. A better understanding of the scope of the cost growth problem would provide decisionmakers with an improved basis for mitigating cost growth. Insight into the drivers of cost growth might suggest policy alternatives appropriate to the goal of mitigating cost growth. This research uses a database composed of 197 major weapon systems reporting through the Selected Acquisition Report (SAR) process as of December 1990 to address these issues. While we have quantified the magnitude of weapon system cost growth along a number of dimensions, we could not definitively account for the observed cost growth patterns. Thus, no silver bullet policy option is available for mitigating cost growth.

Author : Joseph George Bolten
Publisher : Rand Corporation
Page : 117 pages
File Size : 50,7 Mb
Release : 2008
Category : History
ISBN : 9780833042897

Get Book

Sources of Weapon System Cost Growth by Joseph George Bolten Pdf

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.

Author : United States. General Accounting Office
Publisher : Unknown
Page : 76 pages
File Size : 51,8 Mb
Release : 1973
Category : United States
ISBN : IND:30000090184866

Get Book

Cost Growth in Major Weapon Systems [in The] Department of Defense by United States. General Accounting Office Pdf

Author : United States. General Accounting Office
Publisher : Unknown
Page : 36 pages
File Size : 49,5 Mb
Release : 1975
Category : United States
ISBN : UIUC:30112119935895

Get Book

Application of Design-to-cost Concept to Major Weapon System Acquisitions by United States. General Accounting Office Pdf

Author : National Academies of Sciences, Engineering, and Medicine,Division on Engineering and Physical Sciences,Air Force Studies Board,Committee on USAF Sustainment Planning Early in the Development Life Cycle
Publisher : National Academies Press
Page : 99 pages
File Size : 43,5 Mb
Release : 2020-07-16
Category : Technology & Engineering
ISBN : 9780309675857

Get Book

Weapons System Sustainment Planning Early in the Development Life Cycle by National Academies of Sciences, Engineering, and Medicine,Division on Engineering and Physical Sciences,Air Force Studies Board,Committee on USAF Sustainment Planning Early in the Development Life Cycle Pdf

According to the Government Accountability Office, sustainment of weapon systems accounts for approximately 70 percent of the total life-cycle costs. When sustainment is not considered early in the development process or as an integral part of the systems engineering design, it can negatively affect the ability of the Air Force to maintain and improve the weapon system once it enters service. At the request of the Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics, Weapons Systems Sustainment Planning Early in the Development Life Cycle identifies at what point or phase of the development of a weapons system sustainment planning should be integrated into the program; examines and provides recommendations regarding how sustainment planning should be evaluated throughout the development process; investigates and describes the current challenges with sustainment planning and determines what changes have occurred throughout the acquisition process that may have eroded sustainment planning; and identifies opportunities for acquisitions offices to gain greater access to sustainment expertise.

Author : Paul G. Hough,Rand Corporation
Publisher : Unknown
Page : 84 pages
File Size : 47,9 Mb
Release : 1992
Category : United States
ISBN : IND:30000025992789

Get Book

Pitfalls in Calculating Cost Growth from Selected Acquisition Reports by Paul G. Hough,Rand Corporation Pdf

Cost growth is a highly visible phenomenon in the procurement of major weapon systems. In general, cost growth is the ratio of a weapon system's current estimate of cost to that of some earlier estimate. Thus, even given the same current estimate, different measures of cost growth are possible, depending on which prior estimate is selected as the baseline. Most studies of cost growth, however, select the cost estimate made at the time of program entry into full-scale development (the development estimate) as the baseline. Both the current estimate and the development estimate are normally taken from the Selected Acquisition Report (SAR), a legally mandated summary report on the status of major acquisition programs. This Note identifies and explains the type of cost data found in the SAR and reviews the history of the SAR with respect to cost reporting. In spite of changes that have improved the quality and comprehensiveness of the data in the SAR, it still presents difficulties for measuring cost growth. Among the most notable problems are failure of some programs to use a consistent baseline cost estimate, exclusion of some significant elements of cost, exclusion of certain classes of major programs, and constantly changing preparation guidelines. Nevertheless, the author concludes that SAR data are suitable for identifying broad-based trends and temporal patterns across a range of programs.

Author : Michael J. Sullivan
Publisher : DIANE Publishing
Page : 47 pages
File Size : 54,8 Mb
Release : 2008-10
Category : Technology & Engineering
ISBN : 9781437907650

Get Book

Defense Acquisitions by Michael J. Sullivan Pdf

The DoD expects the cost to develop and procure the major weapon systems in its portfolio to total $1.6 trill. With increased competition for funding within DoD and across the fed. gov¿t., effectively managing these acquisitions is critical. Yet DoD programs often experience poor outcomes -- like increased costs and delayed fielding of needed capabilities. In 2006, a report was issued on DoD¿s processes for identifying needs and allocating resources for its weapon system programs. In 2007, it was reported that DoD consistently commits to more programs than it can support. This report assesses DoD¿s funding approach, identifies factors that influence the effectiveness of this approach, and identifies practices that could help improve DoD¿s approach.

Author : United States. General Accounting Office
Publisher : Unknown
Page : 152 pages
File Size : 41,9 Mb
Release : 1988
Category : Weapons systems
ISBN : STANFORD:36105127374457

Get Book

Weapons Cost by United States. General Accounting Office Pdf

Author : United States. Government Accountability Office
Publisher : DIANE Publishing
Page : 73 pages
File Size : 47,8 Mb
Release : 2010
Category : Defense spending
ISBN : 9781437936544

Get Book

Defense Management: DOD Needs Better Information and Guidance to More Effectively Manage and Reduce Operating and Support Costs of Major Weapon Systems by United States. Government Accountability Office Pdf

Report examining growth in operating and support (O&S) costs of major DOD weapons systems, and identifying measures to improve DOD ability to manage and reduce O&S costs of weapons systems over their life cycle.

Author : Michael J. Sullivan
Publisher : DIANE Publishing
Page : 19 pages
File Size : 48,9 Mb
Release : 2010
Category : Technology & Engineering
ISBN : 9781437914412

Get Book

Defense Acquisitions: DoD Must Prioritize Its Weapon System Acquisitions and Balance Them with Available Resources by Michael J. Sullivan Pdf

Since FY 2000, the DoD has significantly increased the number of major defense acquisition programs and its overall investment in them. However, acquisition outcomes have not improved. In most cases, the programs failed to deliver capabilities when promised -- often forcing warfighters to spend additional funds on maintaining legacy systems. This testimony describes the systemic problems that have contributed to poor cost and schedule outcomes in DoD¿s acquisition of major weapon systems; recent actions DoD has taken to address these problems; and steps that Congress and DoD need to take to improve the future performance of DoD¿s major weapon programs. Illustrations.