Date of Award

9-1994

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

First Advisor

David S. Christensen, PhD

Abstract

This study examines the cause of cost overrun recoveries within Department of Defense DoD contracts. In this time of extremely limited congressional funding, it is crucial the DoD avoid cost overruns. Information provided to contracting officers and contractors which would help avoid cost overruns would prove extremely valuable to the DoD. This study attempts to address this problem in two ways determine the cause of overrun recoveries determine whether a statistical difference in cost and schedule performance exists among DoD contractors. Interviews, document reviews, and a two-sample t- test were used to analyze the contracts that recovered from early cost overruns. One-Way Analysis of Variance, along with normality tests and equality-of- variance tests were used to analyze the contractor’s cost and schedule performance. The specific contract reviewed for contract recovery actions revealed no specific management action that led to the recovery. Additionally, more than 300 contracts across 49 contractors revealed no significant statistical difference between contractors in the areas of cost and schedule performance.

AFIT Designator

AFIT-GCA-LAS-94S-5

DTIC Accession Number

ADA285017

Comments

Co-authored thesis.

The authors' Vita pages are omitted.

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

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