The phenomenon of cost overruns in Department of Defense acquisition programs has been a problem for decades. In fact, regulations to control defense procurements extend as far back as the 1940's. However, these policies have accomplished little in controlling or reducing the problem. A 1993 Rand Corporation study discussed the extent of cost growth in the DoD and indicated that cost growth has fluctuated around 20 percent since the mid 1960's and that little improvement has occurred over time (Drezner and others, 1993:2). ...
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The phenomenon of cost overruns in Department of Defense acquisition programs has been a problem for decades. In fact, regulations to control defense procurements extend as far back as the 1940's. However, these policies have accomplished little in controlling or reducing the problem. A 1993 Rand Corporation study discussed the extent of cost growth in the DoD and indicated that cost growth has fluctuated around 20 percent since the mid 1960's and that little improvement has occurred over time (Drezner and others, 1993:2). Other research indicates that the average cost overrun on DoD acquisition contracts is approximately 40 percent (Gansler, 1989:4). However one measures the unplanned cost increases (growth or overruns to be explained later in this thesis) is academic; the magnitude of the problem persists and is readily seen as 20 to 40 percent can represent a notable loss. This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
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