COST EFFECTIVENESS ANALYSIS OF THE USE OF COLORLESS APPROPRIATIONS IN NAVY AND DOD SOFTWARE DEVELOPMENT PILOT PROGRAMS

Modernization of the Defense Acquisition Management and federal budget appropriation systems is necessary to ensure technological warfighting advantage, particularly in support of the Department of Defense’s software and cyber transition to a Development Operations (DEVOPS)/Development Security Operations (DEVSECOPS) environment. In appropriations, one modernization effort has been reform initiatives utilizing “colorless” appropriations for software-intensive defense acquisition programs. This thesis examines a sample of these pilot efforts through a combination of cost-effectiveness analysis and qualitative reflection to evaluate for efficiencies gained. While quantitative assessment identifies improved effectiveness at lower costs, sparsity of available data and program-specific external variables limit the statistical significance. However, qualitative insights in combination with commercial industry best practices may enhance the efficacy of this and other future reform efforts. These recommendations include additional selection criteria for pilot programs, additional metrics for quantitative and qualitative data collection, and further policy updates to enable a more effective transition from traditional appropriations. These conclusions derive from Defense Acquisition Management; federal budgeting and financial management; defense Planning, Programming, Budgeting, and Execution processes; DEVOPS/DEVSECOPS practices; and Agile and Lean principles.
Lieutenant, United States Navy
Lieutenant, United States Navy
Lieutenant, United States Navy
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