Stability Properties in Department of Defense Contracts: Answering the Controversy

Authors

Jacob L. Petter, Air Force Cost Analysis Agency
Jonathan D. Ritschel, Air Force Institute of TechnologyFollow
Edward D. White, Air Force Institute of TechnologyFollow

Document Type

Article

Publication Date

Fall 2015

Abstract

Delineating where stability occurs in a contract provides the window of opportunity for procurement officials to positively affect cost and schedule outcomes. While the concept of a Cost Performance Index (CPI) “stability rule” has been routinely cited by Earned Value Management (EVM) authors since the early 1990’s, more recent research questions the veracity of this stability rule. This paper resolves the controversy by demonstrating that the definition of stability matters. We find a morphing of the stability definition over time, with three separate definitions permeating the literature. Next, an analysis of Department of Defense contracts for both cost and schedule stability properties finds that the veracity of the stability rule is intricately tied to the definition used.

Comments

Copyright © 2015 by PrAcademics Press, Publisher Emerald Publishing Limited

This a subscription-access article, available to readers with a subscription to Journal of Public Procurement, using the DOI link below.

DOI

10.1108/JOPP-15-03-2015-B004

Source Publication

Journal of Public Procurement

Recommended Citation

Petter, J.L., Ritschel, J.D. and White, E.D. (2015), "Stability properties in department of defense contracts: Answering the controversy", Journal of Public Procurement, Vol. 15 No. 3, pp. 341-364. https://doi.org/10.1108/JOPP-15-03-2015-B004