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Accession Number ADA564352
Title Sound Cost Estimating: A Pre-Requisite to Ascertaining Affordability of DoD Programs.
Publication Date Oct 2011
Media Count 5p
Personal Author M. Husband
Abstract The guidance for achieving better buying power set forth in Dr. Carter's Sept. 14, 2010, memo requires action by every member of the acquisition community. This article considers just two of the many processes that are critical for program success: conducting a sound program life cycle cost estimate and establishing a program's budget. These two processes are interlinked in that the best available cost estimate should be used to determine the program budget, not only at major acquisition milestones, but also annually during the budgeting cycle. Interlinking of these processes is meant to ensure that the resources devoted to large programs are sufficient to complete them successfully, based on a comprehensive oversight process that includes scrutiny at least at major milestones as well as annual re-evaluations as part of DoD's budgeting process. Yet despite DoD's extensive oversight process and the best efforts of its workforce, the Department's acquisition programs are increasingly plagued by worsening cost and schedule growth and failure to deliver promised performance. While conducting sound estimates and appropriately establishing program budgets cannot ensure successful outcomes, they are two key processes that must be done right if a program is to have any chance of success. So what can a PM do to improve the cost estimating and resource allocation processes for his or her program. At first blush, it seems like an insurmountable task, as cost estimates that established the program baseline may have been done years earlier and budget cuts are a systemic feature of our system. The advice I offer falls squarely into that common-sense, non-profound set of good management principles that all PMs are doing their best to adhere to every day. Be skeptical. Be transparent. Be resolute and courageous.
Keywords Allocations
Cost estimates
Cost growth
Cost overruns
Department of defense
Life cycle costs
Management personnel
Military budgets
Military procurement
Program affordability
Program budgeting
Project management
Resource allocation
Schedule delays
Schedule growth

Source Agency Non Paid ADAS
NTIS Subject Category 70B - Management Practice
96 - Business & Economics
74E - Logistics, Military Facilities, & Supplies
Corporate Author Defense Acquisition Univ., Fort Belvoir, VA.
Document Type Journal article
Title Note Journal article.
NTIS Issue Number 1303
Contract Number N/A

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