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Improving the Cost Estimation of Space Systems

Cover: Improving the Cost Estimation of Space Systems: Past Lessons and Future Recommendations

By: Obaid Younossi, Mark A. Lorell, Kevin Brancato, Cynthia R. Cook, Mel Eisman, Bernard Fox, John C. Graser, Yool Kim, Robert S. Leonard, Shari Lawrence Pfleeger, Jerry M. Sollinger

Why have the costs of acquiring space systems been so high? What are the sources of the problems? To answer these questions, RAND researchers examined the sources of cost growth of Air Force space systems and undertook an extensive study of two space systems — the Space Based Infrared System–High (SBIRS) and the Global Positioning System (GPS) — including an evaluation of their sources of cost growth, an assessment of their approaches to technical risk assessment, and an examination of their acquisition policy adaptations and industrial base environments. The researchers recommend independent program assessment for space systems that emphasizes technical and program factors, and a modified organizational structure that maintains cost analyst independence. They also summarize the cost estimating best practices of several other government organizations.

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Pages: 240

ISBN/EAN: 9780833044600

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Contents

Chapter One:
Introduction

Chapter Two:
Analysis of the Magnitude and Sources of Cost Growth in the SBIRS-High and GPS Programs

Chapter Three:
Technical Risk Assessment Relating to Cost Estimation for SBIRS-High and GPS

Chapter Four:
Other Nontechnical SBIRS-High and GPS Contributing Factors

Chapter Five:
SMC Organization and Cost Analysis Workforce Assessment

Chapter Six:
Organizational Structure and Other Organizational Issues

Chapter Seven:
Conclusions and Recommendations

Appendix A:
RAND Questionnaire Used in Interviews with All SMC Major Program Offices, January 2006

Appendix B:
Findings from Other Interviews

Appendix C:
Summary of Programs Currently Managed at SMC

Appendix D:
Details of the SMC Cost Analyst Workload Model

Appendix D:
Space Systems Cost-Estimating Tools, Methods, and Data Assessment

The research described in this report was sponsored by the United States Air Force and conducted by RAND Project AIR FORCE.

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