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The Impact Of Economic Factors And Acquisition Reforms On The Cost Of Defense Weapon Systems
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Book Synopsis The Impact of Economic Factors and Acquisition Reforms on the Cost of Defense Weapon Systems by :
Download or read book The Impact of Economic Factors and Acquisition Reforms on the Cost of Defense Weapon Systems written by and published by . This book was released on 2006 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cost overruns in weapon system purchases have plagued the Department of Defense (DoD) throughout its history and have resulted in schedule delays and potentially reduced combat capability. This thesis created an empirical model that begins to explain those cost overruns. The model describes how changes in defense budgets, consolidation of the defense industry, acquisition reform, war, and cost estimating error are related to cost overruns. The cost performance of 186 major weapon system programs managed by the Air Force, Army, and Navy from 1970 to 2002 was described using a panel regression model. This research found that funding instability resulting from changing levels of defense budgets accounted for an increase of over $13.3 billion in weapon system costs since 1970. This research also found that the defense industry consolidation of the 1990s did not result in significant savings to the DoD. Finally, this research found that contrary to past studies, several acquisition reforms are correlated with a decrease in weapon system cost overruns. In particular, reforms resulting from the Nunn-McCurdy Act of 1982, the Packard Commission Recommendations of 1986 and the Federal Acquisition Streamlining Act (FASA) of 1994 resulted in savings of almost $124 billion since 1982.
Book Synopsis The Impact of Economic Factors and Acquisitions Reforms on the Cost of Defense Weapon Systems by : James P. Smirnoff
Download or read book The Impact of Economic Factors and Acquisitions Reforms on the Cost of Defense Weapon Systems written by James P. Smirnoff and published by . This book was released on 2006 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Acquisition Reform by : United States. General Accounting Office
Download or read book Acquisition Reform written by United States. General Accounting Office and published by . This book was released on 1997 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Sources of Weapon System Cost Growth by : Joseph George Bolten
Download or read book Sources of Weapon System Cost Growth written by Joseph George Bolten and published by Rand Corporation. This book was released on 2008 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous studies have shown that the Department of Defense (DoD) and the military departments have historically underestimated the cost of new weapon systems. Quantifying cost growth is important, but the larger issue is why cost growth occurs. To address that issue, this analysis uses data from Selected Acquisition Reports to examine 35 mature, but not necessarily complete, major defense acquisition programs similar to the type and complexity of those typically managed by the Air Force. The programs are first examined as a complete set, then Air Force and non-Air Force programs are analyzed separately to determine whether the causes of cost growth in the two groups differ. Four major sources of cost growth were identified: (1) errors in estimation and scheduling, (2) decisions made by the government, (3) financial matters, and (4) miscellaneous sources. Total (development plus procurement) cost growth, when measured as simple averages among the program set, is dominated by decisions, which account for more than two-thirds of the growth. Most decisions-related cost growth involves quantity changes (22 percent), requirements growth (13 percent), and schedule changes (9 percent). Cost estimation (10 percent) is the only large contributor in the errors category. Less than 4 percent of the overall cost growth is due to financial and miscellaneous causes. Because decisions involving changes in requirements, quantities, and production schedules dominate cost growth, program managers, service leadership, and Congress should look for ways to reduce changes in these areas.
Book Synopsis Price-based Acquisition by : Mark A. Lorell
Download or read book Price-based Acquisition written by Mark A. Lorell and published by Minnesota Historical Society. This book was released on 2005 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report presents findings from a research study conducted by RAND Project AIR FORCE, a division of the RAND Corporation, to examine the effects of using price-based acquisition (PBA) approaches for the development and production of major Air Force weapon systems, subsystems, and other military-unique articles. Typically in these cases, the cost-based acquisition (CBA) approach is used-i.e., the price to develop and produce such an article is based on cost data that the government requires the contractor to provide. Critics of this traditional, CBA method see it as imposing heavy regulatory burdens on the government and the contractor and tending to discourage potential non-defense contractors from competing for government contracts, thus reducing competition and quality and increasing cost.
Book Synopsis Defense Acquisitions by : Michael J. Sullivan
Download or read book Defense Acquisitions written by Michael J. Sullivan and published by DIANE Publishing. This book was released on 2010-09 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: For several decades, Congress and the DoD have explored ways to improve the acquisition of major weapon systems, yet program outcomes and their underlying causes have proven resistant to change. Last year, the cumulative cost growth in DoD's portfolio of major programs was $296 billion. The opportunity to achieve meaningful improvements may now be at hand with the recent intro. of major reforms to the acquisition process. This report focuses on: (1) identifying weapon programs that are achieving good outcomes; (2) the factors that enable some programs to succeed; and (3) lessons to be learned from these programs to guide implementation of recent reforms. This report conducted case study reviews of five programs. Charts and tables.
Book Synopsis Cost and Schedule Growth During Weapon System Acquisition by : Jeffrey Guy Wolf
Download or read book Cost and Schedule Growth During Weapon System Acquisition written by Jeffrey Guy Wolf and published by . This book was released on 1990 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary objective of this study is to document relationships between two weapon system program outcomes, cost and schedule growth, and aspects of the political and economic climate during system development. The data sample selected for study was aerospace industry-related weapon system programs. The central methodology used in the analysis included: (1) The identification of factors reflecting the economic and political conditions expected to be associated with program outcomes. (2) The creation of measures of cost and schedule growth. (3) Statistical analysis was conducted to test the hypothesized relationships between program outcomes and explanatory factors. The analysis was conducted to separately explain three program outcomes: development cost growth, development schedule growth, and total program cost growth. General conclusions from this study are that significant relationships to exist between cost and schedule growth and specific political and economic explanatory factors.
Book Synopsis Acquisition Reform: Effect on Weapon System Funding by :
Download or read book Acquisition Reform: Effect on Weapon System Funding written by and published by . This book was released on 1997 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last several years, the Department of Defense (DOD) has placed priority attention on reforming its acquisition processes and has emphasized that savings resulting from acquisition reforms are needed to help fund weapons modernization. Responding to a request by the Under Secretary of Defense for Acquisition and Technology, the military services estimated acquisition reform cost reductions on 63 major weapon programs. We have reviewed the services' estimates to determine the extent to which the reported cost reductions from acquisition reform will provide funds from approved budgets to support modernization.
Book Synopsis Avoiding Another Hollow Force by : Michael D. Lay
Download or read book Avoiding Another Hollow Force written by Michael D. Lay and published by . This book was released on 2013 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In today's austere fiscal environment, the Department of Defense (DoD) must implement a long-range strategy, reform its acquisition system, reallocate resources to preserve current force structure and fund modernization programs, while retaining the flexibility to adapt to unpredictable threats. This strategy must be accomplished in the context of the nation's current debt crisis. This paper's thesis: reforming the acquisition system and the planning, programming, budgeting, and execution (PPBE) system will allow the DoD to eliminate asteful spending, optimize the joint force, and avoid another "hollow force." This paper reviews the impacts of the Budget Control Act, sequestration, and the DoD's acquisition system and PPBE paradigms to determine how the U.S. Armed Forces can be more efficient and effective, in the face of significant defense cuts. The post-Vietnam era and the 1990s were classic "hollow force" periods. After Vietnam, socio-economic factors and funding decisions that favored the development of advanced weapon systems rather than funding other vital requirements such as manpower led to the hollow force. In the 1990s, a hollow force was created by "over- ommitting" the U.S. military relative to its size and resources. This was exacerbated by recruiting and retention problems and emphasis on readiness-related funding versus modernization. While the United States remains the world's most powerful military, near-peer competitors such as China are closing the gap. Based on slow economic growth, large federal deficits and debt, and soaring acquisition costs, U.S. leaders face many challenges in balancing the economy with national security risks through its defense budget. The DoD must reform its acquisition and PPBE systems to a cost- effective approach that eliminates waste, preserves critical combat capability, and avoids hollowing out the force." -- Abstract
Author :U. s. Government Accountability Office Publisher :Createspace Independent Pub ISBN 13 :9781482771473 Total Pages :48 pages Book Rating :4.7/5 (714 download)
Book Synopsis Weapons Acquisition Reform: Reform Act Is Helping DOD Acquisition Programs Reduce Risk, But Implementation Challenges Remain (GAO-13-103) by : U. s. Government Accountability Office
Download or read book Weapons Acquisition Reform: Reform Act Is Helping DOD Acquisition Programs Reduce Risk, But Implementation Challenges Remain (GAO-13-103) written by U. s. Government Accountability Office and published by Createspace Independent Pub. This book was released on 2013-03-14 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Defense (DOD) has taken steps to implement fundamental Weapon Systems Acquisition Reform Act of 2009 (Reform Act) provisions, including those for approving acquisition strategies and better monitoring weapon acquisition programs. DOD is also continuing to take additional steps to strengthen policies and capabilities. Some provisions, such as issuing guidance for estimating operating and support costs, are being implemented. GAO's analysis of 11 weapon acquisition programs showed the Reform Act has reinforced early attention to requirements, cost and schedule estimates, testing, and reliability. For example, prior to starting development, an independent review team raised concerns about the Ground Combat Vehicle program's many requirements and the risks associated with its 7-year schedule. Subsequently, the Army reduced the number of requirements by about 25 percent and prioritized them, giving contractors more flexibility in designing solutions. In addition, the developmental test and evaluation office--resulting from the Reform Act--used test results to help the Joint Light Tactical Vehicle program develop a more realistic reliability goal and a better approach to reach it. While DOD has taken steps to implement most of the fundamental Reform Act provisions, some key efforts to date have been primarily focused on DOD's largest weapon acquisition programs. DOD faces five challenges--organizational capability constraints, the need for additional guidance on cost estimating and Reform Act implementation, the uncertainty about the sufficiency of systems engineering and developmental testing resources, limited dissemination of lessons learned, and cultural barriers between the Office of the Secretary of Defense (OSD) and the military services--that limit its ability to broaden the Reform Act's influence to more programs. Service officials believe additional guidance is needed to improve their cost estimates and other implementation efforts. They also believe that lessons learned from programs that experience significant cost and schedule increases should be shared more broadly within the acquisition community. These challenges seem straightforward to address, but they may require more resources, which have been difficult to obtain. Ensuring the services have key leaders and staff dedicated to systems engineering and developmental testing activities, such as chief engineers at the service level and technical leads on programs, as well as breaking down cultural barriers are more difficult to address. They will require continued monitoring and attention by the Under Secretary for Acquisition, Technology and Logistics, service acquisition executives, and offices established as a result of the Reform Act to address.
Book Synopsis An Analysis of the Implementation of Acquisition Reform Initiatives and Contract Cost Variance by : Mark A. Holbrook
Download or read book An Analysis of the Implementation of Acquisition Reform Initiatives and Contract Cost Variance written by Mark A. Holbrook and published by . This book was released on 2003-03-01 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the impact of acquisition reform initiatives implemented since 1993 on contract cost performance. Many initiatives implemented during the 1990s focused on saving the government money in procuring weapon systems. For decades, cost overruns have plagued Department of Defense weapons systems development and procurement costing the government money. The passage of the Federal Acquisition Streamlining Act (FASA) of 1994 and the Clinger-Cohen Act of 1996, marked significant congressional action on aiding the Department of Defense develop and procure systems cheaper. Conclusions drawn in this thesis may aid leadership in supporting current initiatives and drafting new changes.
Book Synopsis Improved Affordability in DoD Acquisitions Through Strategic Management of Systemic Cost Risk by : David J. Petrucci
Download or read book Improved Affordability in DoD Acquisitions Through Strategic Management of Systemic Cost Risk written by David J. Petrucci and published by . This book was released on 2013 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: "For almost 70 years, actual costs of Major Defense Acquisition Programs (MDAPs) in the Department of Defense (DoD) have exceeded on average between 20% and 506% of their life cycle cost estimates, which are official expectations of actual program costs prior to completion. Despite numerous DoD acquisition reform efforts and implementation of sophisticated cost estimation techniques, this cost growth continues to exist. Accurate cost estimates are vital to the capital budgeting process for the DoD since they are used to set the affordability cap for each MDAP and across DoD Component weapon system program portfolios. Affordability is defined as the upper limit a DoD Component can allocate for a program without reducing costs or shifting resources between programs. To improve affordability in the DoD, a method that quantifies and adjusts for the persistent cost growth to enhance the accuracy of cost estimates is needed to promote more responsible and sustainable MDAP capital investment decisions. This thesis presents a simple yet powerful method of quantifying and correcting for systemic cost estimation risk in MDAPs to improve cost estimate accuracy and, consequently, affordability."--Abstract.
Book Synopsis Is Weapon System Cost Growth Increasing? A Quantitative Assessment of Completed and Ongoing Programs by :
Download or read book Is Weapon System Cost Growth Increasing? A Quantitative Assessment of Completed and Ongoing Programs written by and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cost growth in DoD acquisition programs has been a long-standing concern of senior policymakers and members of Congress. In recent decades, there have been numerous attempts to rein in this growth. Some changes involve reforms to the acquisition process, while others entail legislation. The RAND Corporation has a long history of studying cost growth in defense acquisition, with research reaching back to the 1950s.
Book Synopsis Emerging Strategies in Defense Acquisitions and Military Procurement by : Burgess, Kevin
Download or read book Emerging Strategies in Defense Acquisitions and Military Procurement written by Burgess, Kevin and published by IGI Global. This book was released on 2016-07-22 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Military and defense organizations are a vital component to any nation. In order to maintain the standards of these sectors, new procedures and practices must be implemented. Emerging Strategies in Defense Acquisitions and Military Procurement is a pivotal reference source for the latest scholarly research on the present state of defense organizations, examining reforms and solutions necessary to overcome current limitations and make vast improvements to their infrastructure. Highlighting methodologies and theoretical foundations that promote more effective practices in defense acquisition, this book is ideally designed for academicians, practitioners, researchers, upper-level students, and professionals engaged in defense industries.
Book Synopsis Economic Security: Neglected Dimension of National Security ? by : National Defense University (U S )
Download or read book Economic Security: Neglected Dimension of National Security ? written by National Defense University (U S ) and published by Government Printing Office. This book was released on 2011-12-27 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.
Book Synopsis Military Cost-Benefit Analysis by : Francois Melese
Download or read book Military Cost-Benefit Analysis written by Francois Melese and published by Routledge. This book was released on 2015-03-27 with total page 469 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive book on Military Cost-Benefit Analysis and provides novel approaches to structuring cost-benefit and affordability analysis amidst an uncertain defense environment and cloudy fiscal prospects. Lifting the veil on military Cost-Benefit Analysis, this volume offers several new practical tools designed to guide defense investments (and divestments), combined with a selection of real-world applications. The widespread employment of Cost-Benefit Analysis offers a unique opportunity to transform legacy defense forces into efficient, effective, and accountable 21st century organizations. A synthesis of economics, statistics and decision theory, CBA is currently used in a wide range of defense applications in countries around the world: i) to shape national security strategy, ii) to set acquisition policy, and iii) to inform critical investments in people, equipment, infrastructure, services and supplies. As sovereign debt challenges squeeze national budgets, and emerging threats disrupt traditional notions of security, this volume offers valuable tools to navigate the political landscape, meet calls for fiscal accountability, and boost the effectiveness of defense investments to help guarantee future peace and stability. A valuable resource for scholars, practitioners, novices and experts, this book offers a comprehensive overview of Military Cost-Benefit Analysis and will appeal to anyone interested or involved in improving national security, and will also be of general interest to those responsible for major government programs, projects or policies.
Book Synopsis Defence Inflation by : Keith Hartley
Download or read book Defence Inflation written by Keith Hartley and published by Routledge. This book was released on 2018-10-18 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Defence inflation is a recurring factor in determining defence spending. It is widely reported in official government publications and in the trade press, but remains relatively neglected by defence and peace economists. In this book, international contributors from Finland, Norway, Sweden, the UK and the USA distinguish between defence inflation and cost escalation, and identify the causes of both. They use specific case studies to address a wide variety of theoretical and empirical issues and key questions, including the following: Does defence inflation affect all countries? What are its effects? Why does it occur? How (if at all) can defence inflation be controlled? While most industry and trade press devote considerable ink and space to the discussion of defence inflation, cost escalation, and their consequential impact on the purchasing dollars of the armed forces, economists have been relatively silent. This book aims to rectify this oversight through a multinational survey and analysis of the topic, while also identifying the opportunities for further theoretical and empirical research in the field. This book was originally published as a special issue of the journal Defence and Peace Economics.
