Institutionalizing the Results of the Independent Cost Analysis,
AIR FORCE SYSTEMS COMMAND WASHINGTON DC
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Objective Three of the Comptroller of the Air Force Long Range Objective Plan and Strategies is to Assume a full range of quality cost, economic and financial analysis and management services is provided in support of the Air Force mission. Strategy 3. a states Apply analysis capability and usefulness in the decision making process at all levels. Potentially the most useful tool for impacting the analysis process in the area of cost is the Independent Cost Analysis ICA. An independent test for reasonableness of a program office estimate, the ICA is an effective tool for program management. While there are policies in effect at both the Department of Defense and Air Force level for treatment of ICA results, these policies do not lead to a consistant and thorough teatment of ICA results in program management and budgeting activities. This paper suggest that a more standardized and regulated treatment of ICA results within the Air Staff would be of benefit to program financial management, and serve as an incentive to those who prepare the estimate.
- Economics and Cost Analysis