Bias in Initial Cost Estimates: How Low Estimates Can Increase the Cost of Acquiring Weapon Systems,

Abstract

A small sample of weapon systems was investigated to determine whether a definite cause-and-effect relationship could be established between low initial cost estimates and subsequent cost increases. This report describes the result of that investigation and offers a few observations on how DoD might adapt defense procurement procedures to deal with problems arising from low estimates. The observations are intended to be suggestive, not definitive.

Document Details

Document Type
Technical Report
Publication Date
Jul 01, 1974
Accession Number
AD0787395

Entities

People

  • Joseph P. Large

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Cost Estimates
  • Costs
  • Observation
  • Procurement
  • Weapon Systems
  • Weapons

Readers

  • Defense Acquisition Program Management
  • Regression Analysis.
  • Systems Analysis and Design