Our analysis shows that the Department of Defense (DoD) and the military departments have generally underestimated the cost of buying new weapon systems and that this growth is higher than previously thought. It indicates a systematic bias toward underestimating costs and substantial uncertainty in estimating the final cost of a weapon system.Acquisition Strategies In an analysis of the 128 programs that had a DE between 1960 and 1990, Drezner et al. (1993) found that programs that included prototyping had higher average total cost growth than programs without prototyping.
|Title||:||Historical Cost Growth of Completed Weapon System Programs|
|Author||:||Mark V. Arena|
|Publisher||:||Rand Corporation - 2006-01-01|