Impact of political-economy variables on cost growth in military weapon system contracts

For decades, cost growth in major military weapon system programs has been problematic. The result is a multitude of studies documenting internally focused causes of Department of Defense (DoD) acquisition cost growth and a spawning of acquisition reforms that have provided little relief to the problem. The missing components of these prior analyses are the larger economic and political factors that contribute to cost growth. This study analyzes cost growth in major DoD development and procurement contracts through a holistic political-economy construct including the effect of the political party of the President and Congress, and the liberal-conservative record of the Armed Services Committees. These political-economy constructs in both development contracts and procurement contracts are found to be more robust.