Current dilemmas in U.S. Air Force cost analysis

摘要

The most demanding challenges in cost analysis arise not in applying the basic principles of cost analysis or utilizing available tools and methodologies, but in resolving specific program issues. For example, how should the cost analyst treat cost saving initiatives proposed by the contractor? How sensitive is the estimate to small changes in cost improvement slopes? How does the cost analyst deal with a program for which the requirements are not fixed or are continually changing? How should the cost analyst deal with cost uncertainty and what insight should be provide the decision-maker in this regard? This paper addresses one by one a number of these dilemmas that the cost analyst faces in his/her day-to-day job. In addition to those listed above, other dilemmas deal with contractor business base assumptions, price based acquisition, cost data, program budgets, operating and support costs, and software cost estimating. These dilemmas and many others are often not recognized as the most important part of the cost analyst's job. The creativity of the cost analyst and the supporting analysis to resolve these dilemmas will have a significant impact on the quality of the cost estimate.