An Overview of Acquisition Reform Cost Savings Estimates,Used

An Overview of Acquisition Reform Cost Savings Estimates,Used

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Product Description A number of analyses have recently been conducted in efforts to update technical cost models and cost estimating relationships for fixedwing combat aircraft, particulary in light of the numerous costsaving measures that have been initiated over the past decade. This report focuses on aqguisition reform or the institution of changes in government acquisition procrsses or in the relationship between the government and Department of Defense primes. From the Publisher In support of the project "The Cost of Future Military Aircraft:Historical Cost Estimating Relationships and Cost ReductionInitiatives," this study gives an overview of a wide range of publishedestimates and projections of potential cost savings that are attributedto a variety of weapon system acquisition reform (AR) measures.These estimates are compared in accordance with a taxonomy developedby the authors. Although the origins and quality of the estimatesare discussed, no independent estimates have been generated,nor are the existing published estimates analyzed in depth. Rather,the authors present a taxonomy of current AR initiatives; reviewpublished estimates of the cost savings attributed to these initiatives;report the views of industry and government officials on the potentialcost savings from AR; and discuss the structuring and implementationof programmatic AR measures based on lessons learned fromexisting AR pilot programs.The project is in the RAND Project AIR FORCE Resource ManagementProgram. The research is sponsored by the Principal Deputy,Office of the Assistant Secretary of the Air Force (Acquisition), and bythe Office of the Technical Director, Air Force Cost Analysis Agency.This study should be of interest to government and industry officialsconcerned with assessing the potential cost savings that current ARmeasures may generate when applied to major weapon system R&Dand procurement programs.The information collection cutoff date was December 1999.PROJECT AIR FORCEProject AIR FORCE, a division of RAND, is the Air Force federallyfunded research and development center (FFRDC) for studies andanalysis. It provides the Air Force with independent analyses of policyalternatives affecting the development, employment, combatreadiness, and support of current and future aerospace forces.Research is performed in four programs: Aerospace ForceDevelopment; Manpower, Personnel, and Training; ResourceManagement; and Strategy and Doctrine. About the Author Mark A. Lorell is a senior analyst in the international studies group at RAND whose research interests include weapon system acquisition policies and force structure modernization, and Japanese, Korean and NATO military force structure planning/issues, among other international policy studies.

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