Theory And Practice Of Cost Estimating For Major Acquisitions

Abstract

Realistic cost estimating is indispensable to decision making by both the Congress and the military services' management during the process of acquiring a new weapon system. Previous General Accounting Office (GAO) reports have shown that estimates of the cost to develop and produce a weapon system are frequently understated. Data available on 47 weapon systems show cost increases of $15.6 billion from early development estimates. The Department of Defense attributed 43 percent of this amount, or $6.7 billion, to estimating changes. GAO attempted to identify those factors in the cost-estimating function that were causing the problem and to offer suggestions as to how the problem might be solved or abated.

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Document Details

Document Type
Technical Report
Publication Date
Jul 24, 1972
Accession Number
AD1181808

Entities

People

  • Elmer B. Staats

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Defense
  • Air Force
  • Aircrafts
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Databases
  • Defense Systems
  • Department Of Defense
  • Engineering
  • Governments
  • Intercontinental Ballistic Missiles
  • Procurement
  • United States
  • Weapon Systems
  • Weapons

Readers

  • Educational Psychology
  • Life Cycle Cost Analysis
  • Public Financial Management and Budgeting