An Investigation of the Impact of Contract Changes on Cost Growth within the LANTIRN (Low Altitude Navigation and Targeting Infrared System for Night) System Program Office.
Abstract
The acquisition of new weapon systems is a multi-billion dollar industry, whose cost is matched in magnitude only by its complexity. Quite frequently the final costs of these weapon systems greatly exceed their original cost estimates. Initiatives have been aimed at acquistion cost reduction, but to a large extent the problem still persists. The purpose of this thesis is to explore possible means for improving the efficiency and cost-effectiveness of the acquistion management process. This study examines the contract amendments that transpired during the Full Scale Engineering Development (FSED) phase of the Low Altitude Navigation and Targeting Infrared System for night (LANTIRN) weapon system. Contract changes and their subsequent costs are grouped relative to their impact on (1) the scope of the contract, (2) the product delivery schedule of the contract, and (3) the design of the weapon system. In addition, various other factors are considered such as the point in contract performance at which the change occurred, the length of the period of performance, the page length of the Engineering Change Proposal (ECP), and the page length of the Statement of Work (SOW) alteration. All costs are adjusted to base year FY86 dollars to control for inflation.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1986
- Accession Number
- ADA174395
Entities
People
- James E. Blacken Jr
Organizations
- Air Force Institute of Technology