Correlation analysis: Army Acquisition Program cycle time and cost variation

Abstract

A changing threat environment, decreasing defense budget, and need for modernization are forcing the Acquisition Process to reform policies and procedures. The Acquisition Process must develop initiatives to reduce both program cycle time and program cost to meet the challenges presented by this new acquisition environment The objectives of this thesis are to explore the overall cycle time and cost growth trends in Army Acquisition Programs, and determine how program schedule growth affects program cost This analysis is relevant in facilitating development of acquisition reform initiatives targeted at reducing program schedule and cost. This study concludes that Army programs experience average cycle time growth of 19.6 months and average cost growth of 49.9%. A significant research finding is that Army programs demonstrate a relationship between schedule growth and cost growth. This research also reveals that program cost growth, identified in the SARs as being induced by schedule growth, is only 14.3% of cost growth adjusted for quantity change. This thesis suggests that schedule growth has a larger effect on cost growth than indicated in the SARs. This research intends to function as an overview of Army Acquisition Program schedule and cost growth, and the relationship between these two important program elements