Systems Engineering and Program Management Trends and Costs for Aircraft and Guided Weapons Programs

Abstract : Sound cost estimates are essential to developing good budgets and policy decisions. Some recent RAND studies have looked at estimating techniques for the nonrecurring and recurring flyaway costs of military airframes and engines. This study extends the analysis into what are termed below-the-line costs. Below-the-line costs include costs for such items as system test and evaluation, data, special test equipment and tooling, training operational site activation, industrial facilities, initial spares and repair parts and systems engineering and program management. These costs are not directly associated with the development or the production of the hardware end item. Nevertheless, they are important cost elements that are necessary for delivery of the complete end item to the government.