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Status of DoD's Capability to Estimate the Costs of Weapon Systems

Suppose you are the cost analyst responsible for estimating the cost of a weapon system (e.g., tactical aircraft) in preparation for a major milestone review (e.g., Milestone II, Engineering and Manufacturing Development). Do you have the data you need? Do you have the right methods (e.g., cost-estimating relationships) and tools (e.g., automated models)? At the 1998 DoD Cost Analysis Symposium, representatives from each of the Military Departments answered these questions as best they could for all major commodity types. The Air Force representative addressed aircraft and space systems; the Navy representative discussed ships and electronics; and the Army representative addressed missile systems, land vehicles, and ordnance. A representative from the OSD Cost Analysis Improvement Group (CAIG) added the CAIG perspective and provided highlights of the upcoming Defense Acquisition Board schedule where these estimates will be needed. The findings of this panel of representatives will be used to revise the DoD Six-Year Cost Research Plan that will guide future investments in DoD cost research.

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