By Mark Lorell

A couple of analyses have lately been performed in efforts to replace technical rate versions and price estimating relationships for fixed-wing wrestle plane, particulary in mild of the various cost-saving measures which were initiated over the last decade. This record makes a speciality of aqguisition reform or the establishment of adjustments in executive acquisition procrsses or within the courting among the govt. and division of security primes.

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Extra info for An Overview of Acquisition Reform Cost Savings Estimates

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Its purpose is to determine whether published estimates in the literature are sufficiently robust to contribute to the development of adjustment factors for use in predictive cost models that reflect the effects of AR on the costs of developing and producing fixed-wing combat aircraft. The report reviews a wide range of published estimates and projections of claimed savings that may arise from a variety of weapon system AR measures. However, no independent RAND estimates of potential AR cost savings have been generated, nor have any of the published estimates been analyzed.

Army contractors, most of whom specialized in militaryunique items such as machine guns. 7 This number is close to C&L’s estimate of a 22 percent regulatory compliance cost for companies that produce military unique items for the DoD. NORCOM’s top four cost drivers were also similar to those of C&L, even though the AMC study used either broader categories or categories that were not exactly comparable in other ways. Thus, in the AMC study, government quality systems, auditing and accounting requirements, and contracting and pricing regulations accounted for more than 50 percent of the DoD regulatory compliance cost premium.

These results, however, were somewhat less encouraging than initial expectations. The Regulatory Cost Premium Working Group focused its primary efforts on actions to mitigate the effects of the top 24 cost drivers, identified by the C&L study, which accounted for 75 percent of the DoD regulatory cost premium. 4 percent. 3 percent. This was because the Working Group concluded that retention of some elements of the regulations identified as the top 24 cost drivers was necessary for maintaining public trust and pursuing beneficial aspects of oversight.

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An Overview of Acquisition Reform Cost Savings Estimates by Mark Lorell
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