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John King's avatar

The best reference on the cost and schedule missteps is still Fred Brooks' 1975 book, The Mythical Man-Month. Read it in college studying economics. Look it up in Wiki. The manager for IBM's OS/360 software, the way I like to remember his summary is that it always takes 3 times as long and costs 5 times as much as the initial estimate. A Navy budgeteer, in 2000, I headed up the joint (Navy, Marines, Air Force, OSD) program and budget review team for the Joint Strike Fighter program. Identified 7 major and 6 minor problems, the order of when they'd occur and potential mitigation measures. We immediately addressed the first two: under-estimation of flight test aircraft (not enough) and flight test hours (too few). Over succeeding years, everything happened in the order expected. Program STILL took longer and cost more. Years later I had opportunity to tell Jamie Morin (CAPE director and recent PPBE Reform commissioner) to "Repeat after me. Cost estimating is the astrology of the statistics." For a Navy with a great history, shipbuilding has always been problematic. The first six frigates were behind schedule and over budget at a time when Benjamin Stoddart, our first SECNAV, declared we needed to "make up for the want of great force with great effort". It's a lesson we still haven't learned.

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Alan Gideon's avatar

The results of the Calpin paper are in line with my findings, published as my dissertation in 2015. My initial goal was to analyze DoD cost overruns, but in the process I derived two improved means of estimating final program costs. As shown there and in a follow-on paper, the essential problems are (a) a fundamental lack of understanding how technical, cost, and schedule risks interact with each other in the program’s integrated schedule, and (b) program promoters always, repeat ALWAYS) advertise lower costs than are reasonable. These problems are not unique to defense spending. They occur in civil engineering projects all the time. The difference is in their impact to national security.

Though I have not been part of the Constellation program, I’m willing to bet that the reason the ship is grossly overweight is because everyone and his brother kept tweaking the original design, unaware (or not caring) that every change to a ship’s design impacts multiple systems on the ship, by as much as ten fold. This last fact has been known to naval ship designers for at least 50 years.

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