Estimating Cost Growth in Engineering and Schedule Cost Catergories Using a Two-Pronged Regression Approach
Abstract
This research confirms the usefulness of the logistic and multiple regression two-step procedure for assessing cost growth in major DoD weapon systems. We compile programmatic data from the Selected Acquisition Reports (SARs) between 1990 and 2002 for programs covering all defense departments. Our analysis concentrates on cost growth in the procurement appropriations of the Engineering and Manufacturing Development phase of acquisitions. We investigate the use of logistic regression in cost growth analysis to predict whether or not cost growth will occur in a program. If applicable, multiple regression is implemented to predict how much cost growth will occur. Our study focuses on the engineering and schedule SAR cost variance categories within the procurement appropriations. We study each of these categories individually for significant cost growth characteristics and develop predictive models for each. We discover the two-step logistic and multiple regression approach produces desirable results.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2004
- Accession Number
- ADA422912
Entities
People
- Chris J. Mcdaniel
Organizations
- Air Force Institute of Technology