The Efficacy of Optimized Government–Industry–Academia Co-Education for Major Weapon Systems Cost/Price Analysis and Contract Negotiations

Abstract

The success of delivering and transitioning major weapon systems capabilities at the speed of relevance relies on the collaborative cost/price analysis and contract negotiations process buyers and sellers use to facilitate speed-to-contract award. However, Werber et al. (2019) found that insufficient knowledge of industry operations, risk management, and limited opportunities to attend joint formal education and training events influenced buyer understanding of requirements, cost/price analysis, and contract negotiations (p.120). In response, Werber et al. (2019) identified government–industry collaboration in the form of co-education as a potentially innovative strategy within the ecosystem to minimize these variations and related knowledge gaps (p.120). This study, which was a collaborative effort between graduate students in the Department of Defense Management at the Naval Postgraduate School and buyers and sellers from a major weapon system program office in the Midwest, explored perceptions on the efficacy of co-education for major weapon systems cost/price analysis and contract negotiations to minimize these variations using a common language software package, ProPricer Government Edition (GE). These findings indicate that this approach enables an open and honest transfer of data, information, and knowledge, facilitated by the practical use of ProPricer GE, to support collaboration and innovation, enhancing trust in buyer–seller relationships.