The Price Is Right: Viable Estimates Produce Successful Programs

It is an exciting time to be involved in cost estimation and analysis.  Cost estimation is being escalated in the US government and getting visibility as a way to get programs under control.  The article “The Price is Right” lists some of the issues and solutions.

Cost estimation is becoming a hot-button topic as the Pentagon tries to keep ballooning contracts in check.

Defense Department acquisition officials are fed up hearing words like “overrun,” “escalation” and “run amok” during conversations about the costs of their large procurement programs. So they are trying to reframe the discussion and the Pentagon’s methods of estimating acquisition price tags. Even Defense Secretary Robert Gates has gotten involved, listing realistic cost estimates as one of the department’s top three acquisition reform priorities when he unveiled its detailed budget proposal in April.

We look forward to this increased emphasis on viable estimates as a way to get programs under control.

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