Cost as an independent variable (CAIV): front-end approaches to achieve reduction in total ownership cost

Abstract

Over several years, the United States General Accounting Office (now renamed the Government Accountability Office) reported private sector best practices for controlling costs and pointedly made comparisons with DoD acquisitions. In responding to GAO suggestions for improvement, DoD said the improvements would be forthcoming with the publication of new policy guidance. The new policy directives were published, beginning in May 2003. The final piece -- the Defense Acquisition Guidebook that recommends process and practice -- was put online in the fall of 2004. Now it is possible to address the operative question: Has the DoD put into place policy and implementing guidance, to practice CAIV in the acquisition of DoD's warfighting systems? Secondarily, has DoD established the processes and tools to monitor and control CAIV? Additionally, has the DoD leadership exhibited the will and determination to control Total Ownership Costs of its warfighting systems? Has the TOC focus changed?