The Impact of Human Capital on the Cost of Air Force Acquisition Programs

Abstract

Previous studies have established a link between Human Capital and performance both at the firm and the individual level. These studies have shown that performance can be improved with additional personnel and/or higher education levels. This study attempts to build on this relationship by using the Cobb-Douglas Production function to relate inputs to outputs. The inputs to the function are the number of cost analysts positions, military and civilian, and an education variable for the number of master's degrees in the field. The measure of output is the average cost overrun of Air Force contracts. A time series regression was conducted while controlling for other economic factors such as budgetary fluctuations and inflation. The results show positive effects of Human Capital on performance. Other policy implications of the study are the importance of budgetary stability, inflation predictions and the Defense Acquisition Workforce Improvement Act (DAWIA).

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 2007
Accession Number
ADA469879

Entities

People

  • Jeffrey C. Feuring

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Air Force Personnel
  • Air Force Procurement
  • Business Administration
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Cost Overruns
  • Department Of Defense
  • Employment
  • Management Personnel
  • Military Acquisition
  • Money
  • Organizational Structure
  • Procurement
  • Training

Readers

  • Defense Acquisition Program Management
  • Industrial Economics
  • Life Cycle Cost Analysis