The Relationship Between U.S. Federal Governments Cost Estimates, Service Contract Costs, and Cost Overruns

The Relationship Between U.S. Federal Governments Cost Estimates, Service Contract Costs, and Cost Overruns

Author: 
Claude L. Cable
Program of study: 
D.B.A.
Abstract: 
Researchers speculate, there is an inconsistent use of U.S. Federal Government cost estimates in the U.S. Federal Government procurement dynamics, i.e., budget forecasting. Researchers and leaders hypothesized cost overruns were acceptable standards of practice. In 2013, U.S. Federal Government service contracts made up at least 50% of the contract actions as a whole. The purpose of the current quantitative, correlational study was to determine the relationship between U.S. Federal Government cost estimates, U.S. Federal Government services contract costs, and cost overruns. An archival data review from public accessible websites, i.e., Federal Procurement Data System was conducted. The population addressed in the study consisted of 32,200 U.S. Federal Government service contracts at U.S. Department of Defense, U.S. Army’s Proving Grounds, Aberdeen Proving Grounds, Aberdeen, Maryland dated January 1, 2013, through December 31, 2013. A G*power analysis statistical software recommended a sample size of N=29 to complete the study. The outcome of the study disclosed a correlation (-1.000 and +1.000 and Sig. (2-tailed) of 0.000) with a confidence level of at least 95% of U.S. Federal Government cost estimates, U.S. Federal Government services contract costs, and cost overruns. Additionally, the correlation between variables provides a foundation for U.S. Federal Government leaders to observe these variables. Additionally, the outcome of the study for the consistent use of U.S. Federal Government cost estimates in U.S. Federal Government service contract to stop cost overruns.
Dedication: 
To my parents, Chester Cable and Betty Cable, who taught me the significance of learning throughout life.
Acknowledgements: 
I appreciate GOD for providing me the chance and time to write this dissertation. Dr. Rick Fenwick provided me with valuable support and inspiration. Furthermore, Dr. Geraldine Popadak and Dr. Stephen Tvorik, committee members, thanks for the guidance in the completion of my dissertation. Dr. Fenwick’s, Dr. Popadak’s, and Dr. Tvorik’s, inclination to share their expertise, proficiency, and viewpoint in comments, messages, suggestions, instructions, and residencies assistance in my successful completion of this dissertation journey. My heartfelt thanks go out, to all my friends, family, University of Phoenix acquaintances, and colleagues who provided additional encouragement throughout the process. Finally, I thank my academic and financial advisors from the University of Phoenix that provided valuable assistance during this journey.