The Defense System Cost Performance Database: Cost Growth Analysis Using Selected Acquisition Reports

The difference between estimated and actual costs--cost growth--in weapon system development has been a recurring problem. To facilitate long-term, comprehensive, and consistent analysis of weapon system cost growth, RAND has developed the Defense Systems Cost Performance Database (DSCPD). This database includes cost growth data derived from information in Selected Acquisition Reports, as well as a range of potential explanatory variables, including cost, schedule, and categorical information. This report documents the contents of the DSCPD; the authors discuss data sources, database structure, adjustments and normalization procedures used in the database, and caveats and limitations on its use. It is hoped that extensive use of the database by both governmental and nongovernmental analysts will improve understanding of the problem of cost growth in weapon systems and our ability to control it. The report includes a DOS disk with the two types of analysis files that are part of the DSCPD, in Excel 5.0. There is also a version available for the Macintosh operating system.