Analysis of DoD Weapon System Cost Growth Using Selected Acquisition Reports (as of 31 December 1980)

Abstract

A typical weapon system program undergoes cost growth related to program milestones. A Planning Estimate (PE) is developed at the time the Secretary of Defense approves program initiation. Milestone I (Advanced Development) is considered as program initiation for Selected Acquisition Report (SAR) purposes. A Development Estimate (DE) is made at the time full-scale engineering development is initiated, called Milestone II. The DE serves as the baseline to which all program changes are then compared. The majority of the program cost growth is observed typically in the time period after Milestone II and prior to Milestone III, approval for production. Program cost growth typically continues in the production phase, although at a much lower rate. Because of the 'Maturing' of programs over time, it is beneficial to separate cost growth into two categories corresponding to systems in (1) Development, or (2) Procurement.

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Document Details

Document Type
Technical Report
Publication Date
Oct 07, 1981
Accession Number
ADA109414

Entities

People

  • Bruce J. Mckinney
  • Gerald R. Mcnichols

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Budgets
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Databases
  • Department Of Defense
  • Economic Analysis
  • Engineering
  • Navy
  • Procurement
  • Program Management
  • System Software
  • Uss Ticonderoga
  • Weapon Systems

Readers

  • Life Cycle Cost Analysis
  • Public Financial Management and Budgeting