The Air Force Cost Estimating Process: The Agencies Involved and Estimating Techniques Used.

Abstract

The Department of Defense is faced with the task of acquiring new weapon systems. These acquisitions have been characterized by a history of cost growth, while disparities exist among the cost estimates that are made by different organizations. The AF Business Research Management Center believes that few individuals have an overall, detailed perception of how the various cost estimates interrelate and this belief was substantiated by the research. An extensive literature review was accomplished. A model of the Cost Estimating Process as it appears in published sources was developed, including specific estimating techniques used. Four factors were identified which need attention if the accuracy of estimates is to be improved: (1) a standardized definition of 'accuracy'; (2) a feedback system tailored to the individual estimator; (3) a compendium of cost estimating techniques; (4) a standardized data base identifying the estimator, project, techniques used, and time frame of the cost estimate.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1977
Accession Number
ADA044101

Entities

People

  • Edwin M. Lewis
  • Eugene D. Pearson

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Air Force Facilities
  • Business Administration
  • Closed Loop Systems
  • Contractors
  • Contracts
  • Control Systems
  • Cost Analysis
  • Cost Estimates
  • Databases
  • Department Of Defense
  • Engineering
  • Management Personnel
  • Silicon Carbide
  • Space Systems
  • Standards
  • Test And Evaluation

Readers

  • Regression Analysis.
  • Systems Analysis and Design
  • Theoretical Analysis.