Accession Number:

ADA275787

Title:

Cost Impact of DoD Budget Reductions

Descriptive Note:

Corporate Author:

SPACE AND MISSILE SYSTEMS CENTER LOS ANGELES AFB CA

Personal Author(s):

Report Date:

1993-09-01

Pagination or Media Count:

11.0

Abstract:

Increased unit costs resulting from reductions in Department of Defense DoD procurement are the major cost drivers in the current and future acquisition of weapons systems. This finding was initially reached in the Independent Cost Estimate ICE conducted on the Titan IV Program by the Cost Analysis Division of the Air Force Space and Missile Systems Center. The estimating team commenced its efforts in October 1991 and submitted its report in August 1992. Similar findings have been reached in estimates developed for the following programs F-22 Milstar Inertial Upper Stage and Defense Meteorological Satellite Program. The conclusions drawn from these analyses are that the impact of DoD procurement reductions results in a 10-15 increase in program cost affects all major defense programs and is long term. It is recommended that DoD should reevaluate its understanding of this phenomenon review the coordination of government agency oversight on indirect cost expense and estimate and review program cost from a total cost perspective.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Personnel Management and Labor Relations
  • Military Forces and Organizations
  • Logistics, Military Facilities and Supplies
  • Military Operations, Strategy and Tactics

Distribution Statement:

APPROVED FOR PUBLIC RELEASE