Accession Number : AD1015739


Title :   Tapping Transaction Costs to Forecast Acquisition Cost Breaches


Descriptive Note : Journal Article


Corporate Author : DEFENSE ACQUISITION UNIV FT BELVOIR VA FT BELVOIR United States


Personal Author(s) : Armey,Laura E ; Angelis,Diana I


Full Text : http://www.dtic.mil/get-tr-doc/pdf?AD=AD1015739


Report Date : 01 Jan 2016


Pagination or Media Count : 21


Abstract : This article uses transaction costs to predict the probability of incurring a cost breach in a major defense acquisition program (MDAP). As transaction costs are not explicitly measured for MDAPs, the authors use estimates of systems engineering and program management (SE/PM) costs as a share of overall program costs as a proxy for transaction costs. Using survival analysis, a new approach to predicting cost breaches, they also found that an increased share of SE/PM costs in initial program estimates can help predict future cost breaches.


Descriptors :   cost estimates , systems engineering , program management , cost overruns , costs , military acquisition , contracts


Distribution Statement : APPROVED FOR PUBLIC RELEASE