Cost Growth: Perception and Reality

Abstract

From the Government Accountability Office to think tanks and politicians, everyone agrees that rising weapons costs are evidence of acquisition system failure. However, in the complaints about cost growth, many basic questions go unanswered: Is cost growth always bad? What is cost growth? How serious is it? Why does it matter? What tools are really effective in combating it? A close examination of these questions reveals many misconceptions. These misconceptions lead acquisition executives to implement an endless cycle of reforms that begin with high hopes, yet prove disappointing in execution. This article analyzes the nature of cost growth, assesses its practical effects, surveys the recent literature, and offers insights about which actions are most effective.

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Document Details

Document Type
Technical Report
Publication Date
Jul 01, 2010
Accession Number
ADA523912

Entities

People

  • Mark F. Cancian

Organizations

  • Defense Acquisition University

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Aircrafts
  • Congress
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Cost Overruns
  • Costs
  • Department Of Defense
  • Governments
  • Military Acquisition
  • Military Procurement
  • Navy
  • Perception
  • Procurement
  • Warfare
  • Weapon Systems

Readers

  • Life Cycle Cost Analysis
  • Military History of the United States in the 20th Century.
  • Systems Analysis and Design