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Management perspectives pertaining to root cause analyses of Nunn-McCurdy breaches2013

Contractor motivations and anticipating breaches

by Mark V. Arena

Concern with cost overruns in major defense acquisition programs led Congress to direct investigation of the root causes of overruns in programs that have breached Nunn-McCurdy thresholds. The authors calculate program manager tenure to determine whether tenures have lengthened since policy guidance was issued in 2005 and 2007. They also address the question of whether existing decentralized systems used to track the cost growth and performance of acquisition category II programs are sufficient or whether additional centralized guidance and control from the Office of the Secretary of Defense are warranted. A third question deals with the management of cost and schedule risk and whether the identification of key assumptions, which the authors call framing assumptions, could be a useful risk...

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