Accession Number : AD0787395

Title :   Bias in Initial Cost Estimates: How Low Estimates Can Increase the Cost of Acquiring Weapon Systems,

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Large,Joseph P.

Report Date : JUL 1974

Pagination or Media Count : 29

Abstract : A small sample of weapon systems was investigated to determine whether a definite cause-and-effect relationship could be established between low initial cost estimates and subsequent cost increases. This report describes the result of that investigation and offers a few observations on how DoD might adapt defense procurement procedures to deal with problems arising from low estimates. The observations are intended to be suggestive, not definitive.

Descriptors :   *Weapon systems, *Military procurement, *Cost analysis, Contracts, Decision making, Test methods

Subject Categories : Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE