Please use this identifier to cite or link to this item: https://dair.nps.edu/handle/123456789/1549
Title: Further Evidence on Program Duration and Unit Cost Growth
Authors: David McNicol
Keywords: Post Milestone B
Funding Climate
Cost Growth
Major Defense Acquisition Programs
MDAPs
Program Acquisition Unit Cost
PAUC
Issue Date: 30-Apr-2018
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Costing
SYM-AM-18-039
Abstract: David McNicol, in Post-Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs, in Proceedings of the 14th Annual Acquisition Research Symposium, Vol. 1, explored the association between Program Acquisition Unit Cost (PAUC) growth of Major Defense Acquisition Programs (MDAPs) and funding climates post-Milestone (MS) B. A strong positive association was found for MDAPs that passed MS B in a bust funding climate; the association was weak for programs that passed MS B in boom climates. This paper uses four alternative regression equations to extend these results. In each case, the same pattern of results appears MDAPs that passed MS B in a bust climate had significantly higher growth than those that passed MS B in a boom climate, the 1969 Packard reforms reduced average PAUC growth, and the reduction persisted through the end of the study (FY 2009) but changes to the acquisition process after the Packard reforms through 2009 did not further reduce average PAUC growth. The lower PAUC growth after the Packard reforms probably was due mainly to more realistic MS B baselines. This pattern does not depend on the inclusion of post-MS B funding climate and program duration, although those factors have significant effects.
Description: Acquisition Management / Defense Acquisition Community Contributor
URI: https://dair.nps.edu/handle/123456789/1549
Appears in Collections:Annual Acquisition Research Symposium Proceedings & Presentations

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