Thesis advisor(s): Brad R. Naegle, Keith F. Snider

"March 1999"

Thesis (M.S. in Management) Naval Postgraduate School, March 1999

Includes bibliographical references (p. 77)

This thesis analyzes two acquisition reform initiatives that made Theater High Altitude Area Defense (THAAD) Radar Product Office's Best of Breed Transmit/Receive Module study a success and examines the risk involved in the pursuit of this study. The initiatives are Cost As an Independent Variable (CAIV) and commercial items in the form of dual-use technology. Analysis of the radar subsystem of THAAD reveals a major cost driver to be the transmit/receive (T/R) module in the antenna equipment. The Best of Breed study examined techniques in the design, engineering, and manufacturing of these modules and its components in order to aggressively reduce the unit cost. Using tenets of CAIV, THAAD Radar Product Office was able to define a study such that the contractor would recommend a low risk solution to achieve cost reductions of almost 50% for the module. Additionally, the Product Office was able to accomplish this without sacrificing performance or schedule. The commercial application of the T/R module was an important factor in motivating the contractor to seek aggressive cost reductions. Lessons from this case may be applicable to other programs seeking to reduce cost

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US Army (USA) author

dk/dk cc:9116 5/11/99

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