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Further Evidence on Program Duration and Unit Cost Growth

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Author
McNicol, David
Date
2018-04-30
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Abstract
David McNicol, in "Post-Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs,"in Proceedings of the 14th Annual Acquisition Research Symposium, Vol. 1, explored the association between Program Acquisition Unit Cost (PAUC) growth of Major Defense Acquisition Programs (MDAPs) and funding climates post- Milestone (MS) B. A strong positive association was found for MDAPs that passed MS B in a bust funding climate; the association was weak for programs that passed MS B in boom climates. This paper uses four alternative regression equations to extend these results. In each case, the same pattern of results appears;MDAPs that passed MS B in a bust climate had significantly higher growth than those that passed MS B in a boom climate, the 1969 Packard reforms reduced average PAUC growth, and the reduction persisted through the end of the study (FY 2009);but changes to the acquisition process after the Packard reforms through 2009 did not further reduce average PAUC growth. The lower PAUC growth after the Packard reforms probably was due mainly to more realistic MS B baselines. This pattern does not depend on the inclusion of post-MS B funding climate and program duration, although those factors have significant effects.
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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.
URI
http://hdl.handle.net/10945/58667
NPS Report Number
SYM-AM-18-039
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  • Acquisition Research Symposium

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  • Thumbnail

    Further Evidence on Program Duration and Unit Cost Growth 

    McNicol, David L. (Monterey, California. Naval Postgraduate School, 2018-04-30); SYM-AM-18-115
    David McNicol, in "Post-Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs,"in Proceedings of the 14th Annual Acquisition Research Symposium, Vol. 1, explored the association between Program ...
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    Post–Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs 

    McNicol, David L. (Monterey, California. Naval Postgraduate School, 2017-03); SYM-AM-17-049
    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 ...
  • Thumbnail

    Post–Milestone B Funding Climate and Cost Growth in Major Defense Acquisition Programs 

    McNicol, David L. (Monterey, California. Naval Postgraduate School, 2017-03); SYM-AM-17-102
    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 ...
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