Analysis of Multi-Year Procurement Cost Estimating Methods at the Aeronautical Systems Division

摘要

Multi-year procurement (MYP) has been receiving increased emphasis generated by high levels in DOD. Although the benefits resulting from MYP have been identified from many different sources, the cost savings attributed to those benefits are often difficult to identify. Cost estimates of those savings often lack credibility. This research effort examined cost estimating methods for five different MYP programs at the Aeronautical Systems Division. Reasons for cost savings are identified and those savings are quantified for each program. Similarities and differences in Program Office savings attributable to different areas (key variables) are determined and general areas of cost savings to be considered in estimating MYP are identified.