Date of Award

3-21-2019

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

Department

Department of Systems Engineering and Management

First Advisor

R. David Fass, PhD

Abstract

There have been many fiscal challenges over the years facing the Department of Defense (DOD). With these challenges, cost savings initiatives have become commonplace. To meet these fiscal challenges head-on, new policies to improve estimating and control costs have been implemented. Senior leaders within the cost analysis community are tasked with managing these changes while continuing to provide timely and accurate cost estimates. The purpose of this research is to focus on one of the more important cost savings initiatives -- Product Support Business Case Analyses (PS-BCA). Our research questions explore the current cost and impact of this DoD cost saving policy using a mixed methods approach using both quantitative and qualitative data. The quantitative data showed significant improvements in the process in conducting PS-BCA’s as they became more standardized after 2016 however, despite this, 60% of programs showed a negative return on investment should their recommendations get implemented. Furthermore the qualitative data collected showed significant concerns regarding the PS-BCA process and that there is a belief that the Air Force is receiving suboptimal ROI in this process. These results were then used to answer our research questions to address these concerns and to also make policy recommendations to improve the PS-BCA process. Our results may assist senior leaders within the cost analysis career field in their decision making and also may be a useful starting point for future research.

AFIT Designator

AFIT-ENV-MS-19-M-201

DTIC Accession Number

AD1077257

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