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Economics

Air Force Institute of Technology

Theses/Dissertations

Procurement--Costs

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Contract Over Target Baseline (Otb) Effect On Earned Value Management's Cost Performance Index (Cpi), Dennis E. Jack Jun 2010

Contract Over Target Baseline (Otb) Effect On Earned Value Management's Cost Performance Index (Cpi), Dennis E. Jack

Theses and Dissertations

Cost growth is a problem in U.S. Department of Defense (DoD) acquisitions. A particular component of cost growth is a cost overrun or Over Target Baseline (OTB). In 2009, Trahan found that the Gompertz growth curve better predicted program Estimates at Completion (EAC) for OTB contracts. In 2010, Thickstun studied “the relationships between overruns and a variety of factors,” but found OTB occurrences “random” and questioned the benefit of the OTB process (Thickstun, 2010). In this research, we study OTB‟s ability to effect improved program cost performance; we examine OTB‟s effect on the cumulative Cost Performance Index (CPI) slope after …