I have been on both sides of Air Force systems contracting. I can say that most overruns are caused by chasing new changes. The EC (engineering change) process is guaranteed to increase cost. There was on Army program that went on for over a decade and never produced anything because of constant changes chasing new improvements.
PS All changes must be approved by the program manager.
I can say that most overruns are caused by chasing new changes. The EC (engineering change) process is guaranteed to increase cost.
You are 110% correct there. Some defense contractors are masters at coming up with ECPs that are guaranteed to beget more ECPs. I worked a program with Boeing like this. They would propose impossible (laughable) schedules, but it was just what our promotion-hungry PM wanted to hear. For a good while, the schedule volatility was unbelievable and Boeing was laughing all the way to the bank. And....the PM was replaced, incidentally.
posted on 02/04/2010 4:33:59 AM PST
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