Cost Overrun Optimism: Fact or Fiction

Abstract

The purpose of this study was to determine if the overruns at completion projected by contractor and government personnel are unrealistically optimistic. Research has established that, once a contract is 15 percent complete, the final cost overrun will exceed the cost overrun to date (W. Abba,personal communication, 1992; Christensen, 1989; Heise, 1991; Wilson,1991). Thus, a projected overrun at completion is defined as unrealistically optimistic if it is less than the present cost overrun.

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Document Details

Document Type
Technical Report
Publication Date
Feb 29, 2016
Accession Number
AD1007905

Entities

People

  • David D. Christensen

Organizations

  • Defense Acquisition University

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Air Force Facilities
  • Analysis Of Variance
  • Contractors
  • Contracts
  • Control Systems
  • Cost Overruns
  • Databases
  • Department Of Defense
  • Governments
  • Information Science
  • Military Acquisition
  • Procurement
  • Test And Evaluation
  • Weapon Systems

Readers

  • Educational Psychology
  • Life Cycle Cost Analysis