Pitfalls in Calculating Cost Growth from Selected Acquisition Reports

Abstract

Two prerequisites for research into patterns and causes of cost growth in major weapon systems acquisition are a reliable database and a consistent methodology for ensuring the comparability of the data. Although there are other sources of data, the Department of Defense Selected Acquisition Report is the primary database for cost growth research. The objective of this study is to make known the weaknesses of this database and how they influence calculations of program cost growth. In addition, the study identifies different methodologies for assessing cost growth when inflation and quantities procured differ from early forecasts. The lessons learned from this research are now being applied to current research aimed at quantifying and understanding the reasons for cost growth.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1992
Accession Number
ADA596255

Entities

People

  • Paul G. Hough

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Air Platforms
  • Engineered Resilient Systems
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Aircrafts
  • Airframes
  • Business Administration
  • Contractors
  • Contracts
  • Cost Estimates
  • Defense Systems
  • Department Of Defense
  • Engineering
  • Governments
  • Investments
  • Law
  • Procurement
  • Test And Evaluation

Readers

  • Life Cycle Cost Analysis