IDA Research Notes - Acquisition Part 2: Executing and Managing Programs

April, 2016
Type: Research Notes
David L. McNicol, Patricia Fazio Bronson, David Sparrow,Christopher Martin, Brian Gladstone, Brandon Gould, Prashant Patel, Thomas Barth, Michelle Albert, Elizabeth McDaniel, David Tate, Lisa Veitch and Evan Laprade See more authors

This is the second of two issues of IDA Research Notes focused on acquisition in the Department of Defense. The first article, by David McNicol, examines the relationship of acquisition policy and processes to cost growth. It finds no evidence that the efforts to strengthen the acquisition process through the years have resulted in lower or higher Procurement Acquisition Unit Cost (PAUC) growth. The research did uncover, however, a strong association between funding climate at Milestone B/II and cost growth, noting that high PAUC growth is not persistent, but rather episodic, and correlated with environmental factors outside the control of the acquisition process. It concludes with the striking observation that it seems unlikely that further broad changes in the acquisition process would have a major effect on cost growth.