Date of Award

3-26-2015

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

Department

Department of Mathematics and Statistics

First Advisor

Edward D. White, PhD.

Abstract

This research examined the return on investment of Department of Defense test and evaluation. The thesis analyzed the return on investment of the cost avoidance achieved if an issue discovered late in the program had been discovered and corrected during developmental test and evaluation. The methodology utilized two case study examples from the Joint Primary Training Aircraft System to calculate the potential cost avoidance and the potential return on investment if the program had discovered and corrected the issues during developmental test and evaluation. The result of one case was a 9,260% return on investment. The other case results ranged from a -24% to a 153% return on investment. Both cases illustrated the potential return on investment but no statistically significant conclusions can be obtained from the results. Based on the literature s discussion on the value of identifying problems as early as possible and the potential return on investment from these two cases, further research is essential. This research resulted in proposing multiple recommendations to enhance the acquisition process in an attempt to preserve the long term affordability and long term national defense strategy.

AFIT Designator

AFIT-ENC-MS-15-M-183

DTIC Accession Number

ADA614309

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