A Case Study on the Impacts of Cost Estimating Within Acquisition Program Decision-Making

Abstract

The use of cost estimating is critical to the continuation of acquisition programs due to full funding requirements. Cost estimates are developed and updated throughout the acquisition life cycle of nearly every defense acquisition program. This project analyzes all methods used by the Department of Defense for cost estimating and the trade-offs associated with each method. Understanding these methodologies, a real-life case study is developed based on the Joint Common Missile program and its cost estimates in order to facilitate acquisition professionals with the ability to analyze various cost estimates and understand the associated risks of cost estimating in order to make more prudent decisions or recommendations.