Date of Award


Document Type


Degree Name

Master of Science in Cost Analysis


This study investigates both the purpose and development of management reserve budget as it pertains to the Cost-Schedule Control Systems Criteria outlined in DoD Instruction 5(X)O.2. With the Defense Department facing an environment of shrinking budgets, it is becoming increasingly critical for them to manage their acquisition programs as efficient and effective as possible. The objectives of this study were to gain insight, from both a government and commercial perspective, on both the purpose and the development of the contractor's management reserve budget. Contractor system descriptions and interviews of individuals associated with the government acquisition process were used to document and analyze the objectives of the study. The contractor system descriptions and personal interviews both provided detailed information on the purpose of the contractor's management reserve budget. However, neither data source provided a consistent, objective methodology for developing an accurate and comprehensive contractor's management reserve budget.

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The author's Vita page is omitted.

Presented to the Faculty of the Graduate School of Logistics and Acquisition Management of the Air Force Institute of Technology.