COST ESTIMATING--A CRUCIAL FUNCTION OF THE SHIP ACQUISITION PROCESS

The purposes of this paper are: (1) to identify the important roles of cost estimating in the ship acquisition process, (2) to explain the complexity of estimating the costs of naval ships, and (3) to identify existing and potential problems with the estimation of budget costs and to propose solutions to these problems. Recommendations are made to improve the Navy's cost estimating effectiveness by building a data base from actual return costs, developing and utilizing parametric cost models, continuously updating and validating cost estimating models, planning budget submittals to occur after all major characteristics are determined, staffing the cost estimating functions with numbers and quality of personnel commensurate with the importance of its role, organizing with a higher costing authority responsible for setting policy, integrating total ship program estimates and with "satellite" cost estimating offices in various engineering organizations responsible for performing detailed estimates, budgeting with integrity by submitting only budget figures consistent with the cost estimates, and exercising stringent change control once the budgetary cost constraint is set by allowing only those changes which correct engineering deficiencies or which are compensated in costs by other changes.

  • Availability:
  • Supplemental Notes:
    • ASNE Day 1976 Technical Papers.
  • Corporate Authors:

    American Society of Naval Engineers

    Suite 507, 1012 14th Street, NW
    Washington, DC  USA  20005
  • Authors:
    • Drewry, J T
  • Publication Date: 1976-4

Media Info

  • Features: References;
  • Pagination: p. 203-215
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00134290
  • Record Type: Publication
  • Source Agency: American Society of Naval Engineers
  • Files: TRIS
  • Created Date: Jun 5 1976 12:00AM