Accession Number:

ADA109673

Title:

An Analysis of Cost Growth in the F/A-18 Airplane Acquisition Program

Descriptive Note:

Master's thesis

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s):

Report Date:

1981-12-01

Pagination or Media Count:

231.0

Abstract:

This research analyzes the FA-18 airplane acquisition program with respect to cost growth. It is noted that the development estimate of total program cost addressed the acquisition of only 800 airplanes, but that a decision was made in 1978 to increase the inventory objective to 1366 airplanes. Additionally, the estimates of inflation escalation issued by the Office of the Secretary of Defense are observed to be lower than the inflation actually experienced by the FA-18 contractors. It is concluded that, as of December 1980, the program cost growth was only 10 percent when adjustments are made for both the quantity change and for actual inflation. It is further concluded that the program managers had little control over cost growth. Continued inflation and possible failure to realize the expected cost-quantity relationships are identified as likely areas of significant future cost growth. Author

Subject Categories:

  • Attack and Fighter Aircraft
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE