Using Cost Estimating Relationships to Develop A Price Index for Tactical Aircraft

Abstract

This paper reports on an analysis of cost indexes carried out by the Institute for Defense Analyses (IDA) for the Cost Assessment and Program Evaluation (CAPE) directorate in the Office of the Secretary of Defense (OSD). The research is designed to help CAPE meet the task it was given by the 2009 Weapon Systems Acquisition Reform Act (WSARA), now part of Public Law 111-23, of assessing and updating the cost indexes that the Department of Defense (DoD) employs to ensure the use of realistic cost estimates. Our broader research carries out analysis of three questions: What problems are escalation rates meant to solve, how well do current indexes solve them, and are there other indexes that might do a better job? This paper includes a summary of the findings on the first two questions and focuses the most attention on the third.

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Document Details

Document Type
Technical Report
Publication Date
Apr 30, 2014
Accession Number
ADA612975

Entities

People

  • Bruce R. Harmon
  • Daniel B. Levine
  • Stanley A. Horowitz

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Acquisition
  • Aircrafts
  • Budgets
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Department Of Defense
  • Econometrics
  • Economic Analysis
  • Economics
  • Military Aircraft
  • Price Index
  • Procurement
  • Tactical Aircraft
  • Test And Evaluation
  • Weapon Systems

Readers

  • Defense Acquisition Program Management
  • Regression Analysis.
  • Systems Analysis and Design