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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
"Does a Rubber Baseline Guarantee Overruns?": Study of Cost Performance and Contract Changes in Major Defense Acquisition Programs

"Does a Rubber Baseline Guarantee Overruns?": Study of Cost Performance and Contract Changes in Major Defense Acquisition Programs

Gordan, James A.
Air Force Institute of Technology

Paperback

Business GeneralGeneral Education

ISBN10: 1249401275
ISBN13: 9781249401278
Publisher: Biblioscholar
Published: Sep 17 2012
Pages: 90
Weight: 0.30
Height: 0.19 Width: 6.14 Depth: 9.21
Language: English

This thesis explores the assumption that cost overruns are related to contract changes. A common assertion in defense literature says that contracts which are relatively stable suffer smaller overruns than those which are highly volatile. The stability or volatility of contracts is characterized by their change history. A contract which is modified frequently or by large amounts is more unstable, or volatile, than one which is not changed either as often or by lesser amounts. This study attempts to find evidence supporting this common assertion by examining the relationship between cost growth and baseline stability on over 400 Major Defense Acquisition Program contracts over the last 26 years. The results are intriguing because, counter-intuitively, no significant evidence is found. Possible explanations and implications of this discovery are provided.

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