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Air Force Institute of Technology

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Articles 61 - 90 of 131

Full-Text Articles in Finance and Financial Management

A Cost Analysis Of Dining Facilities: Should The Air Force Continue To Operate Dining Facilities?, Michael J. Hickam Mar 2009

A Cost Analysis Of Dining Facilities: Should The Air Force Continue To Operate Dining Facilities?, Michael J. Hickam

Theses and Dissertations

The Air Force is currently spending approximately $128M per year for food service contracts alone (Hamilton, 2008). These costs do not even account for the costs of labor, supplying food, maintenance contracts, or even utilities. With available annual dollars becoming smaller, the Air Force must examine its current processes and eliminate those which are not mission essential. The Air Force is currently testing new ways of providing meals for their enlisted members. In, 2009, several bases will begin using a swipe card system where airmen can use their swipe card to eat at any services operated facility. In addition, several …

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Forecasting Flying Hour Costs Of The B-1, B-2, And B-52 Bomber Aircraft, Stefanie L. Van Dyk Jun 2008

Forecasting Flying Hour Costs Of The B-1, B-2, And B-52 Bomber Aircraft, Stefanie L. Van Dyk

Theses and Dissertations

This thesis both evaluates, and presents improvements to, the current method of forecasting flying costs of Air Force aircraft. It uses depot level repairable (DLR) and consumable (CONS) data for the Air Force's bomber platforms: B-1B, B-2, and B-52H. The current forecasting method assumes a proportional relationship between costs and flying hours such that 1) when no hours are flown costs are zero, and 2) a 1% increase in flying hours will increase costs by 1%. The findings of this research indicate that applying log-linear ordinary least squares regression techniques may be an improved fit of flying cost data over …

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Strategies For Minimizing Monetary Loss In The Department Of Defense Budget Through Use Of Financial Derivatives, Michael T. Edwards Mar 2008

Strategies For Minimizing Monetary Loss In The Department Of Defense Budget Through Use Of Financial Derivatives, Michael T. Edwards

Theses and Dissertations

The purpose of this research was to examine whether it would be in the best interest of the Department of Defense to consider using currency hedging as a way to protect its budget from negative currency fluctuations in the US Dollar. Specifically, the use of futures and options contracts was examined. Overseas expenditure data was collected on the YEN and the EURO for Fiscal Years 2001 to 2007 and cross-referenced with the contract prices for the aforementioned hedges during the same period of time. Using an ex post facto analysis with the gathered data, the results show that hedging with …

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Contract Delays: The Impact Of Department Of Defense (Dod) Contractors' Wealth, Jacqueline M. Leskowich Apr 2007

Contract Delays: The Impact Of Department Of Defense (Dod) Contractors' Wealth, Jacqueline M. Leskowich

Theses and Dissertations

The monetary incentives used to motivate DoD contractors’ schedule performance on Acquisition Category One programs afford them the opportunity as a whole to earn billions of dollars in addition to their contract award. These incentives are paid 85-90% of the time regardless of schedule performance. While these contractors are paid to avoid delays, there is an indication the delay increases the contractor’s stock value. This research tested the theory that contract delays significantly impact the company’s stock returns. The results found both positive and negative reactions to a firm’s value. Delays caused by budget cuts tend to have a negative …

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Forecasting The Kc-135 Cost Per Flying Hour: A Panel Data Analysis, Michael T. Bryant Mar 2007

Forecasting The Kc-135 Cost Per Flying Hour: A Panel Data Analysis, Michael T. Bryant

Theses and Dissertations

This thesis developed models to forecast the KC-135R monthly Consumables (CONS) and Depot Level Reparable (DLR) Cost per Flying Hour (CPFH) for each U.S. Air Force service component. Using data for each operating location from FY1998 to FY2004, the models were constructed using panel data analysis, a form of regression that adds a cross-sectional and time-series dimension. In addition to including factors previously identified as prime contributors to CPFH, the models added new elements that may influence maintenance costs and be of interest to policymakers. These elements included mission capable rates, airframe operating hours, and climatology factors. An interaction variable …

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Price Vs. Performance: The Value Of Next Generation Fighter Aircraft, John M. Stelly Mar 2007

Price Vs. Performance: The Value Of Next Generation Fighter Aircraft, John M. Stelly

Theses and Dissertations

The United States Department of Defense (DoD) is currently recapitalizing its aging fighter aircraft inventory with the F-22A and F-35. While the DoD may consider cost and performance issues, it does not use a quantitative model that effectively measures the tradeoffs between the two. This thesis constructs a hedonic model of the fighter aircraft market to measure the implicit price on fighter performance characteristics and specifically applies it to next-generation aircraft. Data from 50 aircraft from 1949-present were used to construct two models – one based on procurement costs and one based on research, design, test, and evaluation (RDT&E) costs. …

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The Impact Of Human Capital On The Cost Of Air Force Acquisition Programs, Jeffrey C. Feuring Mar 2007

The Impact Of Human Capital On The Cost Of Air Force Acquisition Programs, Jeffrey C. Feuring

Theses and Dissertations

Previous studies have established a link between Human Capital and performance both at the firm and the individual level. These studies have shown that performance can be improved with additional personnel and/or higher education levels. This study attempts to build on this relationship by using the Cobb-Douglas Production function to relate inputs to outputs. The inputs to the function are the number of cost analysts positions, military and civilian, and an education variable for the number of master’s degrees in the field. The measure of output is the average cost overrun of Air Force contracts. A time series regression was …

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The Costs Of Not Using Green Design In The Usaf: Would Using Green Building Design Have Resulted In Life Cycle Cost Savings?, John Kimball Osborne Mar 2007

The Costs Of Not Using Green Design In The Usaf: Would Using Green Building Design Have Resulted In Life Cycle Cost Savings?, John Kimball Osborne

Theses and Dissertations

This study’s purpose is to determine if using green building design would have resulted in life cycle costs savings for the United States Air Force. Green designs are those that employ steps to mitigate the impacts facilities have on the environment by using resources more efficiently than conventional design. The prevailing ranking system for green design in the United States is the Leadership in Energy and Environmental Design (LEED) rating system which evaluates facilities on certain characteristics, assigning point values that translate to non-certified, certified, silver, gold, or platinum ratings. The author attempts here to show how previous studies indicated …

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How Does The Political Nature Of The Defense Acquisition Process Affect Cost Growth, Nikolaos Gounatidis Sep 2006

How Does The Political Nature Of The Defense Acquisition Process Affect Cost Growth, Nikolaos Gounatidis

Theses and Dissertations

Many of the major programs of the DoD are experiencing cost growth. This research developed an empirical model in order to explain cost overruns. This thesis sought to discover relationships between cost overruns and factors that originate from the political nature of the defense acquisition process. The model describes how the political and legislative balances of power between the parties of the Congress, the change of the purchase habits of the DoD from production to service contracts, and the spreading of defense manufacturing capacity across the U.S are related to cost overruns. This research studied 193 programs from 1970 to …

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A Hedonic Approach To Estimating Software Cost Using Ordinary Least Squares Regression And Nominal Attribute Variables, Marc D. Ellis Mar 2006

A Hedonic Approach To Estimating Software Cost Using Ordinary Least Squares Regression And Nominal Attribute Variables, Marc D. Ellis

Theses and Dissertations

Software spending is increasing within the DoD, NASA, and other technologically advanced organizations, with significant effects on program budgets. Cost estimators must have the best tools available. However, many current models are problematic due to inaccuracy and unavailability of the input parameters, the technical expertise and expense required to operate them, and the difficulty in explaining their outputs. Two databases were analyzed: 60 NASA/JPL software projects and 116 projects from the International Software Benchmarking and Standards Group database. Models developed using ordinary least squares regression employed parameters representing the presence of project characteristics. The models' predictive characteristics were compared based …

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Cost As An Independent Variable: A Study Of Its Continued Use By Aeronautical Systems Center's Programs And Their Contractors To Set And Maintain Cost Objectives, Kevin W. Codrington Mar 2006

Cost As An Independent Variable: A Study Of Its Continued Use By Aeronautical Systems Center's Programs And Their Contractors To Set And Maintain Cost Objectives, Kevin W. Codrington

Theses and Dissertations

The purpose of this research was to assess whether Aeronautical System Center's (ASC's) acquisition professionals believe CAIV has enabled their programs and contractors to set and maintain cost objectives. The three major objectives of this thesis are to answer the following questions: First, Do ASC's acquisition professionals believe their programs are setting and maintaining cost objectives? Second, Do ASC's acquisition professionals believe their contractors are setting and maintaining cost objectives? Last, what is the practitioners' perspective of CAIV? This research identified CAIV as being well received by DoD. It also identified that ASC's acquisition professionals believe their programs and contractors …

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Analysis And Forecasting Of U.S. Navy Operating And Support (O&S) Costs For Rotary Aircraft, Christopher J. Wilkes Mar 2004

Analysis And Forecasting Of U.S. Navy Operating And Support (O&S) Costs For Rotary Aircraft, Christopher J. Wilkes

Theses and Dissertations

This research explores forecasting techniques to estimate the Cost per Flying Hour (CPFH) for Navy rotary aircraft. Three separate forecasting techniques were evaluated to better predict the CPFH for better estimating and budgeting by the U.S. Navy. The process begins by empirically analyzing Operating & Support cost categories for each helicopter. Trends were examined in CPFH. For forecasting purposes, actual CPFH figures were compiled from 1997 to 2003 for the CH-46D, the CH-53D, the MH-53E, the SH-60F, the UH-1N, and the UH-3H helicopters. The forecasting techniques explored were the 3-year moving average, the single exponential smoothing method, and Holt's linear …

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A Comparative Analysis Of The Cost Of Oversight Of Major Defense Acquisition Programs Strictly Under The Direction Of The Department Of Defense 5000 Series Of Instructions, Gary P. Rousseau Mar 2004

A Comparative Analysis Of The Cost Of Oversight Of Major Defense Acquisition Programs Strictly Under The Direction Of The Department Of Defense 5000 Series Of Instructions, Gary P. Rousseau

Theses and Dissertations

The United States Department of Defense has been caught in a continual cycle of acquisition reform since its inception over two hundred years ago. The goal of acquisition reform has always been to find the perfect balance between the amount of program oversight and the amount of flexibility in which program managers are allowed to manage their programs. The only truth learned throughout this process is that defense acquisition does need oversight and that there is no cookie cutter pattern for oversight that will fit all types of acquisition programs equally well. That being said, the focus of this thesis …

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Analysis And Forecasting Of Air Force Operating And Support Cost For Rotary Aircraft, Matthew E. Laubacher Mar 2004

Analysis And Forecasting Of Air Force Operating And Support Cost For Rotary Aircraft, Matthew E. Laubacher

Theses and Dissertations

This research explores forecasting techniques to estimate the Cost per Flying Hour (CPFH) for Air Force Helicopters. Specifically, this research evaluates three separate forecasting techniques to predict the CPFH for better estimating and budgeting by the U.S. Air Force. It starts by empirically analyzing the Operating and Support cost by CAIG categories for each helicopter. For forecasting purposes, the actual CPFH figures were compiled from FY96 to FY03 for a total of eight MAJCOMs flying the MH-53J/M, the HH-60G, or the UH-1N helicopters. The research explores the use of a 3-year moving average, the single exponential smoothing method, and Holt's …

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Logistic And Multiple Regression: The Two-Step Approach To Estimating Cost Growth, Daniel C. Genest Mar 2004

Logistic And Multiple Regression: The Two-Step Approach To Estimating Cost Growth, Daniel C. Genest

Theses and Dissertations

This study sought to predict cost growth in major Department of Defense (DoD) acquisition programs using logistic and multiple regression. In recent years, the use of statistical regression has proven to be successful in predicting the relationships associated with cost growth. This research follows on the work of Sipple (2002) and Bielecki (2003) and further explores the possibilities of using statistical regression to accurately estimate the dollar value associated with risk and uncertainty early in a program's life cycle. In doing so, the author intends to reduce cost growth by increasing the accuracy of the original cost estimates subsequently used …

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Estimating Cost Growth In Engineering And Schedule Cost Categories Using A Two-Pronged Regression Approach, Chris J. Mcdaniel Mar 2004

Estimating Cost Growth In Engineering And Schedule Cost Categories Using A Two-Pronged Regression Approach, Chris J. Mcdaniel

Theses and Dissertations

This research confirms the usefulness of the logistic and multiple regression two-step procedure for assessing cost growth in major DoD weapon systems. We compile programmatic data from the Selected Acquisition Reports (SARs) between 1990 and 2002 for programs covering all defense departments. Our analysis concentrates on cost growth in the procurement appropriations of the Engineering and Manufacturing Development phase of acquisitions. We investigate the use of logistic regression in cost growth analysis to predict whether or not cost growth will occur in a program. If applicable, multiple regression is implemented to predict how much cost growth will occur. Our study …

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An Analysis Of Missile Systems Cost Growth And Implementation Of Acquisition Reform Initiatives Using A Hybrid Adjusted Cost Growth Model, Christopher C. Abate Mar 2004

An Analysis Of Missile Systems Cost Growth And Implementation Of Acquisition Reform Initiatives Using A Hybrid Adjusted Cost Growth Model, Christopher C. Abate

Theses and Dissertations

This thesis examined cost growth in Department of Defense (DoD) missile systems from 1991 to 2001 using Selected Acquisition Report (SAR) data with a hybrid adjusted cost growth (ACG) model. In addition, an analysis of acquisition reform initiatives during the treatment period was conducted to determine if reform efforts impacted missile system cost growth. A pre-reform (1 January 1991 to 31 December 1996) period and post reform (1 January 1997 to 31 December 2001) period was subjectively developed to compare the mean annual ACG during each period for statistical differences. The hybrid ACG model outlined in this thesis may aid …

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Logistic And Multiple Regression: A Two-Pronged Approach To Accurately Estimate Cost Growth In Major Dod Weapon Systems, Matthew B. Rossetti Mar 2004

Logistic And Multiple Regression: A Two-Pronged Approach To Accurately Estimate Cost Growth In Major Dod Weapon Systems, Matthew B. Rossetti

Theses and Dissertations

This research confirms the usefulness of the logistic and multiple regression two-step procedure for assessing cost growth in major DoD weapon systems. We compile programmatic data from the Selected Acquisition Reports (SARs) between 1990 and 2002 for programs covering all defense departments. Our analysis concentrates on cost growth in the procurement appropriations of the Engineering and Manufacturing Development phase of acquisitions. We investigate the use of logistic regression in cost growth analysis to predict whether or not cost growth will occur in a program. If applicable, multiple regression is implemented to predict how much cost growth will occur. Our study …

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Creating Cost Growth Models For The Engineering And Manufacturing Development Phase Of Acquisition Using Logistic And Multiple Regression, Brandon M. Lucas Mar 2004

Creating Cost Growth Models For The Engineering And Manufacturing Development Phase Of Acquisition Using Logistic And Multiple Regression, Brandon M. Lucas

Theses and Dissertations

Cost growth remains a concern for cost analysts, program managers, senior DoD decision-makers, Congress, and even the American public. All of these people have a vested interest in the cost of DoD programs and most would like to see those costs decrease; as such, we need additional tools to help combat cost growth. Previous research creates the foundation for the use of a two-step methodology to help predict cost growth, which we follow closely. First, utilizing logistic regression we analyze whether specific program characteristics predict cost growth within the Engineering and Manufacturing Development (EMD) phase for combined RDT&E and procurement …

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Analysis And Forecasting Of Army Operating And Support Cost For Rotary Aircraft, John C. Hawkins Mar 2004

Analysis And Forecasting Of Army Operating And Support Cost For Rotary Aircraft, John C. Hawkins

Theses and Dissertations

This research explores forecasting techniques to estimate the Cost per Flying Hour (CPFH) for Army Helicopters. Specifically, three separate forecasting techniques were evaluated to better predict the CPFH for better estimating and budgeting by the U.S. Army. For forecasting purposes, actual CPFH figures were compiled from 1995 to 2003 for all MACOMs flying the AH-64A, the CH-47D, and the UH-60A helicopters. The number of MACOMs was then reduced to the top three with regard to total CPFH expenditure. The use of a 3-year moving average, the single exponential smoothing method, and Holt's linear method were explored for each helicopter's data. …

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Establishing A Foundation To Capture The Cost Of Oversight For A Major Defense Program Within The Information Technology (It) Acquisition Community, Monroe Neal Jr. Mar 2004

Establishing A Foundation To Capture The Cost Of Oversight For A Major Defense Program Within The Information Technology (It) Acquisition Community, Monroe Neal Jr.

Theses and Dissertations

In 1970 the Department of Defense introduced the Department of Defense Directive 5000 (DoD 5000) to standardize the acquisition process. The directive created oversight forums to ensure the policies and procedures created were followed, to track program progress, and to identify programs in trouble. Although oversight was essentially created to help reduce the cost of acquisitions, there is reason to believe that it may increase the costs. However, because only been a few studies have been conducted to estimate the cost of oversight, no one knows how much "oversight" actually costs individual programs. Numerous oversight processes are being used today, …

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An Analysis Of Aircraft Weapon Systems Cost Growth And Implementation Of Acquisition Reform Initiatives Using A Hybrid Adjusted Cost Growth Model, Richard A. Phillips Mar 2004

An Analysis Of Aircraft Weapon Systems Cost Growth And Implementation Of Acquisition Reform Initiatives Using A Hybrid Adjusted Cost Growth Model, Richard A. Phillips

Theses and Dissertations

This thesis examined cost growth in Department of Defense (DoD) aircraft weapon systems from 1991 to 2001 using Selected Acquisition Report (SAR) data with a hybrid adjusted cost growth (ACG) model. In addition, an analysis of acquisition reform initiatives during the treatment period was conducted to determine if reform efforts affected aircraft weapon system cost growth. A "pre-reform" (1 January 1991-31 December 1996) period and a "post reform" (1 January 1997-31 December 2001) period were subjectively developed to compare the mean annual ACG during each period for statistical differences. The hybrid ACG model outlined in this thesis may aid program …

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Comparative Analysis On The Cost Of Oversight For The New National Security Space Acquisition Policy- A Delphi Method Approach, Darrin L. Dereus Mar 2004

Comparative Analysis On The Cost Of Oversight For The New National Security Space Acquisition Policy- A Delphi Method Approach, Darrin L. Dereus

Theses and Dissertations

For the past 50 years, the military's use of space for our national defense has increased exponentially. The use of space has increased so much that recent events have led to the approval for most space Major Defense Acquisition Programs to fall under their own process of oversight to track and monitor these programs. The largest reason for this change is due to the difference in spending profiles and current acquisition regulations that are not structured to meet these space expenditure plans. The key problem is no one knows, for sure, how much the oversight process actually costs and if …

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Surveying Cost Growth, Michael A. Greiner, Vince Sipple, Edward D. White Jan 2004

Surveying Cost Growth, Michael A. Greiner, Vince Sipple, Edward D. White

Faculty Publications

Cost growth that weapon systems incur throughout their acquisition life cycle concerns those who work in the acquisition environment. One way to reduce the amount of unexpected cost growth is to develop better cost estimates. In attaining better cost estimates though, it is often helpful to understand and account for potential cost drivers. Several cost studies, some of which specifically focus on the aircraft industry, have been performed documenting and investigating these growth factors. Overviews of these various cost growth studies are presented as other tools for the cost estimators and program managers.

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An Assessment Of Air Force Development Portfolio Management Practices, Michael A. Greiner, Kevin J. Dooley, Dan L. Shunk, Ross T. Mcnutt Apr 2002

An Assessment Of Air Force Development Portfolio Management Practices, Michael A. Greiner, Kevin J. Dooley, Dan L. Shunk, Ross T. Mcnutt

Faculty Publications

Selecting and managing development project portfolios is a critical function within the Air Force’s weapon systems development process. Decision makers must weigh benefits, costs, and mission needs for a variety of proposed new initiatives and current weapon systems programs in order to develop an effective portfolio that provides the best value to the User. This research examines current Air Force development portfolio management practices as perceived by those involved with the decision making process. Research findings indicate several gaps between Air Force practices and those commercial best practices as found in the literature. A general approach for bridging the differences …

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A Life Cycle Cost Analysis Of The Proposed Replacement Of Pope Air Force Base's C-130e Fleet Using A Fleet Replacement Model, Lance R. French Mar 2002

A Life Cycle Cost Analysis Of The Proposed Replacement Of Pope Air Force Base's C-130e Fleet Using A Fleet Replacement Model, Lance R. French

Theses and Dissertations

The 43rd Airlift Wing at Pope AFB, NC, possesses 33 E-model C-130 aircraft. The airplanes range in age from 30-36 years old. Current plans call for replacing Pope's aging fleet of tactical airlifters with new C-130J model planes in FY11. There are two replacement alternatives proposed in this research. The first is to calls for replacing the C-130Es with C-130Js now. The second option is upgrade the C-130Es to C-130Xs and replace them in 10 years with the C-130J. The results indicate that the least cost solution is to upgrade Pope's fleet of C-130Es to C-130Xs now. However, after conducting …

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Forecasting Research & Development Program Budgets Using The Weibull Model, Thomas W. Brown Mar 2002

Forecasting Research & Development Program Budgets Using The Weibull Model, Thomas W. Brown

Theses and Dissertations

Norden (1970) uses the Rayleigh, which is a degenerative of the Weibull, to model manpower on research and development (R&D) programs. Several research efforts extend his work including Lee, Hogue, and Gallagher (1997) who build R&D program budgets based on Rayleigh expenditures. We demonstrate the theoretical limitations to the Rayleigh model and present the Weibull model, which mitigates those limitations. Using 102 completed R&D defense programs, we develop regression models to predict the requisite shape and scale parameters to forecast Weibull-based budgets. Using the remaining 26 completed R&D programs to validate the robustness of our regression models, we show that …

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A Critical Analysis Of The Air Force's International Merchant Purchase Authorization Card (Impac) Program, Roy D. Thrailkill Mar 2001

A Critical Analysis Of The Air Force's International Merchant Purchase Authorization Card (Impac) Program, Roy D. Thrailkill

Theses and Dissertations

The United States Air Force (USAF) purchased over $ 1.3 billion worth of goods and services with the IMPAC in fiscal year (FY) 2000 alone. The proliferation of the IMPAC has changed the way organizations procure goods and services and empowered them with a tool to increase their procurement flexibility and responsiveness. These benefits have been accompanied by regulatory and procedural constraints that have presented challenges to key participants of this streamlined purchase process. This thesis addresses documented deviations of the IMPAC program's execution from its theoretical design. It describes the structure of the IMPAC program, analyzes the execution of …

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Revising R & D Program Budgets When Considering Funding Curtailment With A Weibull Model, Paul H. Porter Mar 2001

Revising R & D Program Budgets When Considering Funding Curtailment With A Weibull Model, Paul H. Porter

Theses and Dissertations

This research develops an analytical technique to estimate the impact of funding curtailment on an R&D program. The method quickly produces a revised budget by year for an on-going R&D program when funding in one year is reduced. We assume program requirements remain unchanged. The program duration may be unchanged or "stretched" to a later completion date. We use the Rayleigh and Weibull functions to model expenditure profiles, which forms basis of the analytical approach. Our proposed methodology accounts for budget outlay rates and inflation. We validate the proposed analytical technique using historical cost data from several programs.

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Estimating C-17 Operating And Support Costs: Development Of A System Dynamics Model, Christopher D. Purvis Mar 2001

Estimating C-17 Operating And Support Costs: Development Of A System Dynamics Model, Christopher D. Purvis

Theses and Dissertations

This research provides justification for experimenting with system dynamics (SD) for performing Operation and Support Cost estimates. For the C-17 Globemaster III cargo aircraft, these costs could exceed $64 billion dollars. Also, many of our weapon systems are beginning to reach the end of their effective life span, and discussions about the impact of aging, on aircraft, has become a hot topic in the literature. System Dynamics is a modeling methodology developed in 1958, but never used extensively for cost estimating. SD offers unique capabilities to the cost estimator, including the ability to model causal relationships. This capability offers the …

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