The effect of extension in system technology on contractor costs and production schedules during the procurement of air-launched tactical munitions
Ritchie, Robert J.
Moses, O. Douglas
Liao, Shu S.
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This thesis investigates relationships between extensions in technology and both cost and schedule slippages in the development and production phases of weapons system acquisition. The primary objective is to determine if the amount of technology embodied in a given weapons system can be employed to predict a Department of Defense (DoD) contractor's performance in meeting cost and schedule targets. The analysis used a sample of 15 U.S. military tactical air-launched munitions systems. It begins with a review of the literature regarding technology measurement and its connection to cost and schedule outcomes. Next, measures of technological progress are developed and displayed. Third, the process of creating cost growth and schedule slippage measures are discussed. The relationships between technological complexity and cost and schedule outcomes are then empirically tested. Major findings indicate that measures of extension in technology are worthwhile for explaining production and total program cost growth.
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