Developing Standard EMD Cost Factors For Major Defense Acquisition Program (MDAP) Platforms
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Authors
Markman, Capt Matthew R.
Ritschel, Jonathan D.
White, Edward D.
Valentine, Shawn
Subjects
Advisors
Date of Issue
2019-04-30
Date
Publisher
Monterey, California. Naval Postgraduate School
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Abstract
This paper creates standard cost factors that more accurately reflect observed outcomes in the development stages of major programs. Specifically, this effort creates 443 new 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 paper establishes factor values at the Work Breakdown Structure (WBS) element level for each subcategory of the five identified categories. Coefficient of Variation (CV) values were found to be high (71.86% to 179.87%) in each subcategory. In a refined subset of the dataset, the CV decreased, indicating that the average percent estimating error improved when more detailed information was available. The outcome of this research is that cost estimators will have a reference tool of 443 unique factors for creating estimates and conducting the iterative process of refining cost estimates.
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Report
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Identifiers
NPS Report Number
SYM-AM-19-082
Sponsors
Naval Postgraduate School Acquisition Research Program
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Citation
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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.
