Defense Acquisition Research Journal. Volume 18, Number 3, Issue 59, July 2011
DEFENSE ACQUISITION UNIV FT BELVOIR VA
Pagination or Media Count:
Developing a weapon while in production does increase program risk and is sometimes cited as a reason for cost growth. This article explores the relationship between concurrency and cost growth in large weapon programs. The authors defined concurrency as the proportion of research, development, and test and evaluation appropriations authorized during the same years in which procurement appropriations are authorized. Their results strongly indicate that concurrency does not necessarily predict cost growth. Using classical regression techniques, the authors found no evidence supporting this relationship. To investigate other relationships between cost growth and concurrency, they also used a smooth curving technique. These experiments showed that, although the relationship is not strong, low levels of concurrency are more problematic than higher levels.
- Economics and Cost Analysis