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