A Longitudinal Study and Color Rating System of Acquisition Cost Growth
Technical Report,01 Sep 2015,31 Mar 2017
AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH WRIGHT-PATTERSON AFB United States
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For decades, cost growth studies have been plentiful surrounding Department of Defense acquisitions. Many different angles have been looked at to try and discover how to better estimate cost, what causes cost growth, and how to mitigate it. This research addresses this through examining cost growth from a longitudinal perspective, evaluating cost growth factors at major program reviews, and assessing the cost growth by applying color rating metrics. The results of this analysis show that breaking cost growth into longitudinal segments of a programs lifecycle allows the true behavior of cost growth to be seen, when it can often be masked in the traditional approach of evaluating lifecycle cost growth. Additionally, when applying the proposed color rating system to cost growth factors, significant variables are found to have dependencies with cost growth factor color ratings. Significant relationships shown in the results were most commonly like-color predictor and response variables. Additionally DT and E is shown as a flag for high cost growth issues during a program lifecycle.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies