Tag Archives: Cost Savings

Applications of Should Cost to Achieve Cost Reductions

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Author: D. Mark Husband

The initial version of the DoD’s Better Buying Power (BBP) guidance directed use of “Should Cost Management” as a tool to increase efficiency and productivity in DoD acquisition programs. Over 3 years later, it is worthwhile to examine how programs have implemented Should Cost, the types of savings programs have identified and realized, and best practices and lessons learned that may be adopted or adapted by other programs. This paper provides selected Should Cost implementation examples from 15 Major Defense Acquisition Programs (MDAP) that have resulted in realized Should-Cost savings or initiatives that have an excellent chance of being realized. These programs employed various approaches based on the program’s characteristics and phase within the acquisition life cycle.

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