Can We Explain Cost Growth in Major Defense Acquisition Programs?

This question asked in this article is whether the shared intellectual property of the acquisition community includes an adequate theory of cost growth in major defense acquisition programs (MDAPs). This question is given concrete form by cost growth data for 123 MDAPs. These data are grouped into categories, which range from very small—negative, in fact—cost growth to cost growth in excess of 100%. Potential explanations for this broad range of cost growth considered are: the conventional wisdom about cost growth; a recent RAND study that closely examined cases at both ends of the distribution, along with some possible extensions of that study; and a recent model of the root causes of cost growth. The author argues that each of these falls short; in particular, it seems that the defense acquisition community at large does not have a good explanation of cost growth in the broad range of 30% to 100%.

Exploring Performance in Air Force Science and Technology Programs

Science and technology (S&T) programs serve an important function in the defense acquisition process as the initial phase leading to discovery and development of warfighting technology. The results of these programs impact the larger major defense acquisition programs, which integrate the technologies in subsequent phases of the life cycle. Despite this important role, little prior research has examined the performance of S&T programs. In this study, the authors investigate the impact of technological maturation as a critical success factor in Air Force S&T programs. The results suggest that S&T programs with mature technologies are more likely to experience above average cost growth and larger contract values while less likely to experience schedule growth. Additionally, the authors find the partnership method between the government and contractor matters for both technological maturation and schedule growth. Lastly, the nature of the S&T program is important, with aerospace programs more likely to technologically mature than human systems programs.

Exploring Performance in Air Force Science and Technology Programs

Science and technology (S&T) programs serve an important function in the defense acquisition process as the initial phase leading to discovery and development of warfighting technology. The results of these programs impact the larger Major Defense Acquisition Programs, which integrate the technologies in subsequent phases of the life cycle. Despite this important role, little prior research has examined the performance of S&T programs. In this study, the authors investigate the impact of technological maturation as a critical success factor in Air Force S&T programs. The results suggest that S&T programs with mature technologies are more likely to experience above average cost growth and larger contract values while less likely to experience schedule growth. Additionally, the authors find the partnership method between the government and contractor matters for both technological maturation and schedule growth. Lastly, the nature of the S&T program is important, with aerospace programs more likely to technologically mature than human systems programs.

Systems-of-Systems MS&A for Complex Systems, Gaming and Decision for Space Systems

This chapter discusses advanced modeling, simulation and analysis (MS&A) approaches for supporting complex space system, gaming and decision support system (DSS) using systems-of-systems perspective. The systems-of-systems MS&A approaches presented here also address capability-based approach for supporting US defense acquisition life cycle with a laser focus on the pre-award acquisition phase and combined game theory and wargaming for acquiring complex defense space systems. The chapter also provides an overview of existing models and tools for the design, analysis and development of the government reference system architecture solution and corresponding acquisition strategy in a complex defense systems-of-systems environment. Although, the proposed MS&A approaches presented here are focused on defense space systems, but the approaches are flexible and robust that can be extended to any civilian and commercial applications.

A Mixed-Method Analysis of Schedule and Cost Growth in Defense Acquisition Programs

Cost and schedule overruns are common in the procurement of large-scale defense acquisition programs. Current work focuses on identifying the root causes of cost growth and schedule delays in the defense acquisition programs. There is need for a mix of quantitative and qualitative analysis of cost and schedule overruns which takes into account program factor such as, technology maturity, design maturity, initial acquisition time, and program complexity. Such analysis requires an easy to access database for program-specific data about how an acquisition programs’ technical and financial characteristics vary over the time. To fulfill this need, the objective of this paper is twofold: (i) to develop a database of major US defense weapons programs which includes details of the technical and financial characteristics and how they vary over time, and (ii) to test various hypotheses about the interdependence of such characteristics using the collected data. To achieve the objective, we use a mixed-method analysis on schedule and cost growth data available in the U.S. Government Accountability Office’s (GAO’s) defense acquisitions annual assessments during the period 2003–2017. We extracted both analytical and textual data from original reports into Excel files and further created an easy to access database accessible from a Python environment. The analysis reveals that technology immaturity is the major driver of cost and schedule growth during the early stages of the acquisition programs while technical inefficiencies drive cost overruns and schedule delays during the later stages. Further, we find that the acquisition programs with longer initial length do not necessarily have higher greater cost growth. The dataset and the results provide a useful starting point for the research community for modeling cost and schedule overruns, and for practitioners to inform their systems acquisition processes.

Use of Factors in Development Estimates: Improving the Cost Analyst Toolkit

Factor Estimating is a technique commonly used by defense acquisition analysts to develop cost estimations. However, previous studies developing factors for the Engineering and Manufacturing Development (EMD) phase of the life cycle are limited. This research expands the current toolkit for cost analysts by developing cost factors in previously unexplored areas. More specifically, over 400 cost reports are utilized to create new standard cost factors that are delineated by five categories: commodity type, contract type, contractor type, development type, and Service. The factors are developed for those elements that are common in a wide array of projects such as program management, systems engineering, data, or training. This new factor dataset provides cost analysts with the information necessary to appropriately identify and select the most relevant factors to use when developing future cost estimates. Through statistical analysis, the research also helps identify those elements in which more analysts’ time and energy should be allocated when developing their estimates.