Cost Forecasting for Equipment during Initial Outfitting: A Comparative Analysis Among Three Military Services and the Private Healthcare Industry
Abstract
The purpose of this study was to determine the accuracy of the Army's current equipment estimation process during initial outfitting through the analysis of historical projects. The analysis revealed that on seven past projects, the Army was within budget on six projects. However, limitations of the study reveal that the results are truly inconclusive due to a small sample size and missing data. The study also identified variables that may be important in the cost forecasting process but are not currently included in the Army's budgeting methodology. For example, other organizations are including freight, storage, installment, and procurement assistance costs in budget estimates. Inclusion, or at least evaluation of these variables, may provide the possibility of further accuracy during the equipment budgeting process for the Army. The results lead to an unexpected conclusion that relates more toward a change in procedure than a change in the actual budget estimate figure. The private sector clearly has better data collection methods for tracking equipment planning during construction. The military health system (MHS) must centralize and standardize equipment data collection and reporting in order to conduct any historical or prospective analysis that can be useful in developing budget estimates.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1999
- Accession Number
- ADA420772
Entities
People
- Barbara E. Nosek
Organizations
- Academy of Health Sciences