Navy Acquisition Cost Study

Abstract : The thesis of the attached report is that weapons acquisition cost growth can be characterized with a fair degree of accuracy. The causes of cost growth can be categorized generally as being functions of: B-C-T-T (1) Contractor buy-in, (2) Program/Contract changes, (3) Turbulence, (4) Time. The study highlighted an all too typical scenario: contractors buy-in; program/ contract changes occur; quantities and budgets vascillate causing program stretch-out that becomes increasingly expensive wirh passage of time, all leading to inevitable cost growth. The report asserts that the CNW can effect improvement unilaterally in each of these four areas. Improvement must stem from procedural changes mandated by the CNW accompanied by attitudinal change that must be instilled throughout the Naval Material Command--instituted by the CNW top down and pursued relentlessly for as long as it takes to effect the change desired.