Examining the Institutional Factors Affecting Cost Growth in Defense Acquisition: May Yield More Effective Policy Interventions

Report Number: NPS-AM-09-117

Series: Acquisition Management

Category: Costing

Report Series: Sponsored Report

Authors: Philip Candreva

Title: Examining the Institutional Factors Affecting Cost Growth in Defense Acquisition: May Yield More Effective Policy Interventions

Published: 2010-02-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: NPS Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2009/NPS-AM-09-117.pdf

Keywords: cost growth, defense acquisition, program performance, behavioral finance, group decision-making, organizational failure, Ostrom

Abstract:

Existing studies of cost growth in defense acquisition have been predominantly descriptive rather than explanatory. While observers of defense acquisition acknowledge the role of cultural and institutional factors on program performance, few studies are focused there. However, recent studies have highlighted the importance of decision-making by government officials as a factor affecting cost growth. Informed by the literatures on cost growth, behavioral finance, group decision-making, and organizational failure, this report proposes a research stream to consider factors affecting cost growth beyond those traditionally studied. The study suggests that Ostrom