Date of Award

3-2025

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

Department

Department of Systems Engineering and Management

First Advisor

Jonathan D. Ritschel, PhD

Abstract

Estimating Nonrecurring Engineering (NRE) and Recurring Engineering (REC) costs in defense acquisition programs remains challenging, especially in development. While production costs are studied, NRE/REC ratios in development receive little attention. This study analyzes NRE/REC ratios across WBS elements, commodity types, and time periods using defense program data. Results show significant variability, challenging the assumed 1:1 ratio. System Level, PME, and ST&E elements follow distinct trends, highlighting shifting cost structures. These findings stress the need for adaptive methodologies, enabling cost analysts to refine estimates based on historical trends and program-specific factors for improved resource planning.

AFIT Designator

AFIT-ENV-MS-25-M-071

Comments

An embargo was observed for posting this thesis.

This work is marked Distribution A, Approved for Public Release. PA case number 88ABW-2025-0310

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