Date of Award

9-1993

Document Type

Thesis

Degree Name

Master of Science

Abstract

This study explores the widely held assertion that DOD contract Cost at Completion is bounded below by the Cost Performance Index-based Estimate at Completion (EAC) and above by the Schedule Cost Index-based EAC. Descriptive statistics determined the floor and ceiling for 321 DOD contracts. The results confirmed that the Cost Performance Index-based EAC is a reasonable floor and the Schedule Cost Index-based EAC is a reasonable ceiling for EAC formulas. For the contracts considered overall, on average, the Cost at Completion was not bounded by the floor and ceiling. The range of EAC formulas evaluated tended to slightly underestimate, the Cost at Completion on average. Results were tested for sensitivity to Index Type (Cumulative, six-month and three-month), Program Phase. Contract Type, Branch of Service. System Type, Major Contract Baseline Changes and Management Reserve. Graphs of the EAC ceilings and floors for several contract categories illustrate trends in program status throughout various states of contract completion, These graphs should assist, program analysts in providing program managers with reasonable contract completion cost estimates for contracts in various categories across all stages of contract completion.

AFIT Designator

AFIT-GCA-LAS-93S-9

DTIC Accession Number

ADA275914

Comments

Presented to the Faculty of the School of Logistics and Acquisitions Management of the Air Force Institute of Technology

The authors' Vita pages are omitted.

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