An Overview of Acquisition Reform Cost Savings Estimates

by Lorell, Mark A.; Graser, John C.

• ISBN13: 9780833030184
• ISBN10: 0833030183
• Format: Paperback
• Copyright: 2001-06-01
• Publisher: Natl Book Network

Summary

A number of analyses have recently been conducted in efforts to update technical cost models and cost estimating relationships for fixed-wing combat aircraft, particulary in light of the numerous cost-saving 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.

Table of Contents

Preface	iii
Figure	vii
Tables	ix
Summary	xi
Acknowledgments	xxvii
Acronyms	xxxi
Introduction and Acquisition Reform Measures Taxonomy	1	(8)
DoD Regulatory and Oversight Compliance Cost Premium	9	(22)
Introduction	9	(1)
Defining the Regulatory and Oversight Compliance Cost Premium	10	(5)
The Coopers & Lybrand Study	15	(3)
Early Results of DoD Initiatives to Reduce the DoD Regulatory and Oversight Burden	18	(4)
Early Non-DoD Assessments of Overall DoD AR Savings	22	(2)
Additional Observations from Industry and Government Interviews	24	(5)
Oversight Compliance Cost Premium Summary and Cost Savings Observations	29	(2)
Commercial-Like Program Structure	31	(8)
Introduction	31	(8)
Three U.S. Air Force Acquisition Reform Pilot Munitions Programs	39	(44)
Munitions Program Overviews	39	(41)
Summary of Air Force AR Munitions Programs Cost Savings	80	(3)
Other Commercial-Like AR Pilot Programs	83	(26)
Introduction	83	(1)
Selected U.S. Air Force Space AR Lead Programs: SBIRS and EELV	84	(8)
Selected Defense Acquisition Pilot Programs (DAPPs)	92	(4)
Selected DARPA Section 845 ``Other Transaction'' Programs	96	(4)
Additional Observations from Industry and Government Interviews	100	(6)
Summary Observations on Commercial-Like AR Pilot Programs	106	(3)
Multiyear Procurement	109	(6)
Conclusions on AR Cost Savings Estimates	115	(20)
Summary of the DoD Regulatory and Oversight Cost Premium Estimates	116	(3)
Summary of Savings from AR Pilot and Demonstration Programs (Commercial-Like Program Structure)	119	(2)
Summary of Multiyear Procurement Savings Estimates	121	(1)
Concluding Observations: Some Rules of Thumb for Cost Estimators	121	(4)
Appendix
A. Subjects of the Three RAND Studies on Industry Initiatives Designed to Reduce the Cost of Producing Military Aircraft	125	(4)
B. Acquisition Reform Cost Questions	129	(6)
Bibliography	135