Accession Number:

AD1016036

Title:

Should-Cost Management Tactics

Descriptive Note:

Journal Article

Corporate Author:

Defense Acquisition University Fort Belvoir United States

Personal Author(s):

• Husband,Mark
• Mueller,John

Report Date:

2012-12-01

Pagination or Media Count:

5.0

Abstract:

Experienced acquisition professionals are familiar with the various types and accuracy of program cost estimates. The should-cost concept asks the program manager PM to look at these estimates differently. Rather than accepting the estimates as foregone conclusions, the core principle of the BBP should-cost is to ask the PM to adopt a different mindset toward cost estimates. Under BBP, programs must continuously fight to lower costs wherever and whenever that makes sense. While lowering cost is a primary objective, a program should not trade away proven practices just to reduce near-term costs. A PM must retain a long-term view. The right mindset means looking for savings throughout a programs life cycle, not only in development and production, but also during the Operations and Support O and S phase. Finally, a should-cost mindset focuses the entire program office team on delivering the required capabilityno more and no lessto the warfighter on time and within budget.

Descriptors:

• systems engineering
• business administration
• contractors
• cost analysis
• program management
• test and evaluation
• procurement
• life cycles
• military acquisition

Subject Categories:

Distribution Statement:

APPROVED FOR PUBLIC RELEASE