The Impact of the Packard Commission's Recommendations on Reducing Cost Overruns on Defense Acquisition Contracts

Abstract

Using data from selected acquisition reports, Drezner et al. (1993) show that reform initiatives from 1960 to 1990 did not reduce cost growth on 197 defense programs. The average cost growth on these programs was 20 percent and did not change significantly for 30 years. Using data from the Defense Acquisition Executive Summary data base, we show a similar result. Initiatives based on the recommendations of the Packard Commission did not reduce the average cost overrun percent experienced on 269 completed defense acquisition contracts evaluated over an 8-year period (1988 through 1995). In fact, the cost performance experienced on development contracts and on contracts managed by the Air Force worsened significantly. Although many factors contribute to poor cost performance, estimation error is a casual factor identified in each study.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1999
Accession Number
ADA372859

Entities

People

  • Caisse Vickery
  • David A. Stearle
  • David S. Christensen

Organizations

  • United States Department of the Air Force

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Budgets
  • Business Administration
  • Contracts
  • Cost Estimates
  • Cost Overruns
  • Cost Reductions
  • Costs
  • Databases
  • Department Of Defense
  • Electronic Mail
  • Governments
  • Military Acquisition
  • Procurement
  • Standards
  • Weapon Systems

Readers

  • Economics
  • Government Contracting/Procurement.