Microeconomics, Competition, and Major Defense Acquisition Program Cost

dc.contributor.authorMcElroy, Kenneth L.
dc.contributor.authorKamp, John
dc.contributor.corporateAcquisition Research Program (ARP)
dc.contributor.otherAcquisition Research Program
dc.date05/10/21
dc.date.accessioned2021-11-01T21:24:26Z
dc.date.available2021-11-01T21:24:26Z
dc.date.issued2021-05-10
dc.description.abstractThe Major Defense Acquisition Program (MDAP) market is a monopsony facing oligopoly. In the last four decades, the Department of Defense has placed a great deal of emphasis in its acquisition reform efforts on the power of competition to help control cost overruns and cost growth. In this research, quantitative analyses were used to determine the effect of two reform measures—competitive prototyping and competitive contracting—on cost overruns and cost growth during the Engineering and Manufacturing Development (EMD) phase of the acquisition life cycle. We performed a case study of 63 hardware MDAP contracts from all services. The findings show that while competitive prototyping and competitive contracting lead to greater competition, as the defense acquisition community believes, they fail to control cost overruns and cost growth, just as microeconomic theory predicts.en_US
dc.description.distributionstatementApproved for public release; distribution is unlimited.en_US
dc.description.distributionstatementApproved for public release; distribution is unlimited.en_US
dc.description.sponsorshipPrepared for the Naval Postgraduate School, Monterey, CA 93943.en_US
dc.description.sponsorshipNaval Postgraduate Schoolen_US
dc.identifier.npsreportSYM-AM-21-053
dc.identifier.other76
dc.identifier.urihttps://hdl.handle.net/10945/68116
dc.publisherMonterey, California. Naval Postgraduate Schoolen_US
dc.relation.ispartofseriesAcquisition Research Symposium
dc.rightsThis 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.en_US
dc.titleMicroeconomics, Competition, and Major Defense Acquisition Program Costen_US
dc.typePresentationen_US
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