Annual Growth of Contract Costs for Major Programs in Development and Early Production. Washington, DC : Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), Acquisition Policy Analysis Center , March 21 , 2016
March 21, 2016
Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), Acquisition Policy Analysis Center
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From the report: “Cost is one of the key performance parameters of the defense acquisition system; cost is controlled and traded against schedule and technical performance of weapon systems. A new measure of cost growth (and thus cost control and tradeoffs) was developed to help look for longitudinal performance trends over the last three decades. This measure examines annual cost changes across major contracts for development and early production on major programs. This should not be mistaken for the total costs of these programs because it excludes non-contracted costs and the majority of production contracts. Nonetheless, we expect that the cost-reimbursement and fixed-price incentive contracts that this study examines should show the same trends as other measures of total program cost growth—in part because production contracts have much lower cost growth than these development and early production contracts.”
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