An Analysis of Cost Growth in the F/A-18 Airplane Acquisition Program

Abstract

This research analyzes the F/A-18 airplane acquisition program with respect to cost growth. It is noted that the development estimate of total program cost addressed the acquisition of only 800 airplanes, but that a decision was made in 1978 to increase the inventory objective to 1366 airplanes. Additionally, the estimates of inflation (escalation) issued by the Office of the Secretary of Defense are observed to be lower than the inflation actually experienced by the F/A-18 contractors. It is concluded that, as of December 1980, the program cost growth was only 10 percent when adjustments are made for both the quantity change and for actual inflation. It is further concluded that the program managers had little control over cost growth. Continued inflation and possible failure to realize the expected cost-quantity relationships are identified as likely areas of significant future cost growth. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1981
Accession Number
ADA109673

Entities

People

  • Joseph Wendell Dyer

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aircraft Industry
  • Aircrafts
  • Business Administration
  • Congress
  • Contracts
  • Cost Reductions
  • Databases
  • Engineers
  • Governments
  • Industrial Engineering
  • Management Personnel
  • Money
  • Organizational Structure
  • Program Management
  • Systems Engineering
  • Systems Management
  • Test And Evaluation

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis