An Analysis of Department of Energy Cost Proposal Process and Effectiveness

Report Number: NPS-CE-11-193

Series: Cost Estimating

Category: Best Practices

Report Series: Sponsored Report

Authors: Timothy Reed, Sean Andrews, David Youd

Title: An Analysis of Department of Energy Cost Proposal Process and Effectiveness

Published: 2011-10-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: NPS Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2011/NPS-CE-11-193.pdf

Keywords: cost type contracts, earned value management, acquisition planning, environmental remediation, cost proposal, contract proposal evaluation, risk, cost analysis

Abstract:

The legacy of World War II and Cold War weapons development and manufacturing is a monumental environmental cleanup program that is being managed primarily by the Department of Energy (DoE). This program has been consistently recognized for the challenges it faces in cost growth. Our research identifies the unique operational characteristics in which the program must be carried out. A model identifying remediation cost drivers is developed. A review of best practices from industry and Department of Defense remediation efforts identifies actionable opportunities from among identified cost drivers.