Please use this identifier to cite or link to this item: https://dair.nps.edu/handle/123456789/1775
Title: A Reduced Form Model of Cost Growth of Major Defense Acquisition Programs
Authors: David L. McNicol
Keywords: Cost Growth
Defense Acquisition Programs
MDAPs
Acquisition Policy
Categorical Variables
Issue Date: 13-May-2019
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Acquisition Management
SYM-AM-19-083
Abstract: This paper considers a problem posed implicitly by comparing a basic assumption typically used in quantitative analyses of cost growth of major defense acquisition programs (MDAPs) with that used in David L. McNicol, Acquisition Policy, Cost Growth, and Cancellations of Major Defense Acquisition Programs, IDA Report R 8396, September 2018 (hereafter Acquisition Policy). An analysis in the traditional mold mainly uses program characteristics (such as the maturity of key technologies) to explain cost growth. Acquisition Policy instead uses a categorical variable for funding climate, categorical variables marking major changes in acquisition policy, and measures of program duration. At first glance, these two approaches seem to adopt radically different theories of the causes of cost growth in MDAPs. In fact, they do not. The paper demonstrates this by deriving the model of Acquisition Policy from a more complete model in which the traditional model is a structural equation. In terms of the more complete model, that of Acquisition Policy is the reduced form representation of the traditional model.
Description: Acquisition Management / Defense Acquisition Community Contributor
URI: https://dair.nps.edu/handle/123456789/1775
Appears in Collections:Annual Acquisition Research Symposium Proceedings & Presentations

Files in This Item:
File SizeFormat 
SYM-AM-19-083.pdf423.26 kBAdobe PDFView/Open


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.