Examining the Return on Investment of Test and Evaluation
AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH DEPT OF MATHEMATICS AND STATISTICS
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This research examined the return on investment of Department of Defense test and evaluation. The thesis analyzed the return on investment of the cost avoidance achieved if an issue discovered late in the program had been discovered and corrected during developmental test and evaluation. The methodology utilized two case study examples from the Joint Primary Training Aircraft System to calculate the potential cost avoidance and the potential return on investment if the program had discovered and corrected the issues during developmental test and evaluation. The result of one case was a 9,260 return on investment. The other case results ranged from a -24 to a 153 return on investment. Both cases illustrated the potential return on investment but no statistically significant conclusions can be obtained from the results. Based on the literature s discussion on the value of identifying problems as early as possible and the potential return on investment from these two cases, further research is essential. This research resulted in proposing multiple recommendations to enhance the acquisition process in an attempt to preserve the long term affordability and long term national defense strategy.
- Economics and Cost Analysis
- Test Facilities, Equipment and Methods
- Logistics, Military Facilities and Supplies