Abstract

The Defense Acquisition Program Administration formed a “TF to Improve the Defense Cost Structure” to greatly improve the household composition of the Defense Acquisition Institute and has been focusing on it since March 2019. Although there will be positive aspects that this improvement of defense cost structure can contribute to calculating defense costs and simplifying operating procedures, accurate analysis and diagnosis should be preceded by prompt implementation after consultation with the defense industry and related agencies. Defense projects a re p owered b y complicated c ontracts a nd methods o f business and long-term testing and evaluation. Implementing policies simply through improvements in defense costs alone can backfire or lead to unexpected inefficiencies. It can be pointed out that this is fundamentally the cause of limitations and contradictions in the promotion of improving the defense cost structure. Therefore, the Defense Acquisition Program Administration will require more in-depth communication with the defense industry and practical supplementation and improvement, and the receptive government’s attitude of delaying the full implementation if necessary after careful investigation, analysis and review.

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