Post–Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs
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Authors
McNicol, David L.
Subjects
Advisors
Date of Issue
2017-03
Date
2017-03
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
This paper is the fourth in a series that examines the association between outcomes of Major Defense Acquisition Programs (MDAPs) and changes in acquisition policy and process and funding climate. Like an earlier paper in the series, it finds that quantity normalized Program Acquisition Unit Cost (PAUC) growth measured from Milestone (MS) B is significantly higher in programs that passed MS B in bust climates than in boom climates. The new finding in this paper is that among MDAPs that passed MS B in a bust phase, only those that continued into a boom climate showed significantly higher PAUC growth than programs that passed MS B in a boom climate. This conclusion is important because it implies that much of the observed PAUC growth may have causes other than flaws in MS B baselines. The conclusion tells us less than might be hoped, however. This is so because the PAUC growth associated with the boom climate may reflect the purchase of capability beyond that specified in the MS B baseline or, alternatively, may reflect PAUC increases that occur when programs take advantage of a boom climate to ﾓget well.ﾔ
Type
Report
Description
Series/Report No
Department
Organization
Identifiers
NPS Report Number
SYM-AM-17-049
Sponsors
Naval Postgraduate School Acquisition Research Program
Funding
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.