Author: David S. Christensen
Publisher:
ISBN:
Category : Baseline--Management
Languages : en
Pages : 9
Book Description
A common assertion in defense literature is that an unstable budget baseline contributes to cost overruns on defense acquisition contracts. Using cost performance data from over 400 defense acquisition contracts, we tested this assertion. The stability of the baseline was characterized by the number of significant changes to the budget, and by a statistical measure of the baseline's variability, the coefficient of variation. Cost performance was characterized by cost and schedule performance indices. Using 2 statistical methods, we found no significant relationships between baseline instability and cost overruns. Further, these results were insensitive to the managing service, the buying activity, and the contract type. Changes on a defense contract are not compelling rationale for cost overruns. Other possible causal factors should be more closely examined. The views expressed in this paper are those of the authors and do not reflect the official policy or position of the Department of Defense of the U.S. government.
Does a Rubber Baseline Guarantee Cost Overruns on Defense Acquisition Contracts?
'Does A Rubber Baseline Guarantee Overruns?' A Study of Cost Performance and Contract Changes in Major Defense Acquisition Programs
Author: James A. Gordon
Publisher:
ISBN: 9781423583516
Category : Defense contracts
Languages : en
Pages : 110
Book Description
This thesis explores the assumption that cost overruns are related to contract changes. A common assertion in defense literature says that contracts which are relatively stable suffer smaller overruns than those which are highly volatile. The stability or volatility of contracts is characterized by their change history. A contract which is modified frequently or by large amounts is more unstable, or volatile, than one which is not changed either as often or by lesser amounts. This study attempts to find evidence supporting this common assertion by examining the relationship between cost growth and baseline stability on over 400 Major Defense Acquisition Program contracts over the last 26 years. The results are intriguing because, counter-intuitively, no significant evidence is found. Possible explanations and implications of this discovery are provided.
Publisher:
ISBN: 9781423583516
Category : Defense contracts
Languages : en
Pages : 110
Book Description
This thesis explores the assumption that cost overruns are related to contract changes. A common assertion in defense literature says that contracts which are relatively stable suffer smaller overruns than those which are highly volatile. The stability or volatility of contracts is characterized by their change history. A contract which is modified frequently or by large amounts is more unstable, or volatile, than one which is not changed either as often or by lesser amounts. This study attempts to find evidence supporting this common assertion by examining the relationship between cost growth and baseline stability on over 400 Major Defense Acquisition Program contracts over the last 26 years. The results are intriguing because, counter-intuitively, no significant evidence is found. Possible explanations and implications of this discovery are provided.
Air Force Journal of Logistics
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 132
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 132
Book Description
An Analysis of Cost Overruns on Defense Acquisition Contracts
Author: David S. Christensen
Publisher:
ISBN:
Category : Project Cost Management
Languages : en
Pages : 6
Book Description
Cost overruns are not uncommon in defense contracts. Because of this, there is a need for more realistic cost projections. The United States Office of the Under Secretary of Defense for Acquisition (OUSD(A)) reviewed 500 defense contracts and observed that once a contract is 15 percent complete, it is unlikely to recover from a cost overrun. To test this observation by the OUSD(A), 64 completed defense contracts were examined with the purpose to review the cost overrun data. Based on the assertions by the OUSD(A) and other research, four hypotheses were tested. The results confirmed the hypotheses in 95 percent of the cases. This indicates that not only is recovery from cost overruns in defense contracts highly improbable, but the will likely increase during the project duration, regardless of the type of contract, the stage of the contract, or which branch of the armed services the contract served. Timely management attention to cost variances can turn these cost overruns around.
Publisher:
ISBN:
Category : Project Cost Management
Languages : en
Pages : 6
Book Description
Cost overruns are not uncommon in defense contracts. Because of this, there is a need for more realistic cost projections. The United States Office of the Under Secretary of Defense for Acquisition (OUSD(A)) reviewed 500 defense contracts and observed that once a contract is 15 percent complete, it is unlikely to recover from a cost overrun. To test this observation by the OUSD(A), 64 completed defense contracts were examined with the purpose to review the cost overrun data. Based on the assertions by the OUSD(A) and other research, four hypotheses were tested. The results confirmed the hypotheses in 95 percent of the cases. This indicates that not only is recovery from cost overruns in defense contracts highly improbable, but the will likely increase during the project duration, regardless of the type of contract, the stage of the contract, or which branch of the armed services the contract served. Timely management attention to cost variances can turn these cost overruns around.
Cost Estimating in Support of Contract Negotiations
Author: United States. Congress. Senate. Committee on Armed Services. Subcommittee on Defense Acquisition Policy
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 104
Book Description
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 104
Book Description
Acquisition Review Quarterly
Author:
Publisher:
ISBN:
Category : Armed Forces
Languages : en
Pages : 124
Book Description
Publisher:
ISBN:
Category : Armed Forces
Languages : en
Pages : 124
Book Description
Defense Acquisitions: Termination Costs are Generally Not a Compelling Reason to Continue Programs or Contracts That Otherwise Warrant Ending
Author:
Publisher: DIANE Publishing
ISBN: 1437903355
Category :
Languages : en
Pages : 39
Book Description
The nation's long-term fiscal imbalances will likely make DOD's 1.6 trillion planned investment in new weapon systems unsustainable. Thus, it is critical that DOD retains the flexibility to end programs and contracts when necessary and appropriate. Although the federal government generally has the legal right to terminate contracts for convenience, defense stakeholders have sometimes expressed concerns that it will cost more to terminate a contract than to complete it. To address this perception, GAO examined (1) how expected contract termination costs and other factors affect DOD decisions on whether to end programs and contracts; (2) the circumstances under which it would cost more to terminate a contract for convenience than to complete it; and (3) the options DOD has for retaining value or reducing costs, when DOD ends programs or contracts. To do this, GAO examined DOD data on terminated contracts over $100 million; reviewed laws, regulations, and guidance; and met with key DOD officials. GAO recommends that DOD review, and as needed amend, guidance on terminations across the military services and DOD agencies to ensure that termination guidance identifies the conditions under which it is appropriate to end programs or contracts, and provides knowledge needed to use terminations as an investment portfolio tool. DOD agreed.
Publisher: DIANE Publishing
ISBN: 1437903355
Category :
Languages : en
Pages : 39
Book Description
The nation's long-term fiscal imbalances will likely make DOD's 1.6 trillion planned investment in new weapon systems unsustainable. Thus, it is critical that DOD retains the flexibility to end programs and contracts when necessary and appropriate. Although the federal government generally has the legal right to terminate contracts for convenience, defense stakeholders have sometimes expressed concerns that it will cost more to terminate a contract than to complete it. To address this perception, GAO examined (1) how expected contract termination costs and other factors affect DOD decisions on whether to end programs and contracts; (2) the circumstances under which it would cost more to terminate a contract for convenience than to complete it; and (3) the options DOD has for retaining value or reducing costs, when DOD ends programs or contracts. To do this, GAO examined DOD data on terminated contracts over $100 million; reviewed laws, regulations, and guidance; and met with key DOD officials. GAO recommends that DOD review, and as needed amend, guidance on terminations across the military services and DOD agencies to ensure that termination guidance identifies the conditions under which it is appropriate to end programs or contracts, and provides knowledge needed to use terminations as an investment portfolio tool. DOD agreed.
The Journal of Cost Analysis & Management
Author:
Publisher:
ISBN:
Category : Cost accounting
Languages : en
Pages : 536
Book Description
Publisher:
ISBN:
Category : Cost accounting
Languages : en
Pages : 536
Book Description
Armed Services Procurement Regulation
Author: United States. Office of the Assistant Secretary of Defense (Installations and Logistics)
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 646
Book Description
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 646
Book Description
Project Management
Author: Jack R. Meredith
Publisher: John Wiley & Sons
ISBN: 1119369096
Category : Business & Economics
Languages : en
Pages : 546
Book Description
Projects continue to grow larger, increasingly strategic, and more complex, with greater collaboration, instant feedback, specialization, and an ever-expanding list of stakeholders. Now more than ever, effective project management is critical for the success of any deliverable, and the demand for qualified Project Managers has leapt into nearly all sectors. Project Management provides a robust grounding in essentials of the field using a managerial approach to both fundamental concepts and real-world practice. Designed for business students, this text follows the project life cycle from beginning to end to demonstrate what successful project management looks like on the ground. Expert discussion details specific techniques and applications, while guiding students through the diverse skill set required to select, initiate, execute, and evaluate today's projects. Insightful coverage of change management provides clear guidance on handling the organizational, interpersonal, economic, and technical glitches that can derail any project, while in-depth cases and real-world examples illustrate essential concepts in action.
Publisher: John Wiley & Sons
ISBN: 1119369096
Category : Business & Economics
Languages : en
Pages : 546
Book Description
Projects continue to grow larger, increasingly strategic, and more complex, with greater collaboration, instant feedback, specialization, and an ever-expanding list of stakeholders. Now more than ever, effective project management is critical for the success of any deliverable, and the demand for qualified Project Managers has leapt into nearly all sectors. Project Management provides a robust grounding in essentials of the field using a managerial approach to both fundamental concepts and real-world practice. Designed for business students, this text follows the project life cycle from beginning to end to demonstrate what successful project management looks like on the ground. Expert discussion details specific techniques and applications, while guiding students through the diverse skill set required to select, initiate, execute, and evaluate today's projects. Insightful coverage of change management provides clear guidance on handling the organizational, interpersonal, economic, and technical glitches that can derail any project, while in-depth cases and real-world examples illustrate essential concepts in action.