Director of Cost Assessment and Program Evaluation

Director of Cost Assessment and Program Evaluation
Post	Director of Cost Assessment and Program Evaluation
Body	Office of the Secretary of Defense
Department	United States Department of Defense
Reports to	Secretary of Defense
Appointed by	President of the United States
Formation	1961

Contents

Director of Cost Assessment and Program Evaluation

The Director of Cost Assessment and Program Evaluation is a senior official within the United States Department of Defense who leads independent budget and program evaluation activities and provides analytic advice to the Secretary of Defense, the Deputy Secretary of Defense and the Office of the Secretary of Defense. The office produces cost estimates, alternatives analyses, and acquisition assessments that inform decisions about defense policy, weapons systems, force structure and major acquisition programs. Its work intersects with the Congressional Budget Office, the Government Accountability Office, the Joint Chiefs of Staff, and other defense and civilian institutions.

Role and Responsibilities

The Director prepares independent cost estimates and program evaluations used by the Secretary of Defense, the Deputy Secretary of Defense, the Under Secretary of Defense (Acquisition and Sustainment), and the Under Secretary of Defense (Comptroller) to adjudicate disputes among components such as the Office of Naval Research, the Defense Advanced Research Projects Agency, the Air Force Research Laboratory, and the U.S. Army Materiel Command. Responsibilities include developing analytic methods aligned with standards of the Congressional Budget Office, responding to requests from the House Armed Services Committee and the Senate Armed Services Committee, and coordinating with the Director of Operational Test and Evaluation and the Comptroller of the Department of Defense. The Director influences major program decisions on platforms such as the F-35 Lightning II, the Virginia-class submarine, the Columbia-class submarine, the Ford-class aircraft carrier, and the KC-46 Pegasus tanker.

The office traces origins to cost and program review functions established after studies of procurement practices following the Korean War and the Vietnam War, formalized during the early years of the Kennedy administration as part of reforms linked to the Goldwater–Nichols Act era reorganization and subsequent Defense Acquisition Board practices. The title and statutory authority evolved through legislation including amendments to the Title 10 of the United States Code and oversight reforms prompted by reports from the Packard Commission and investigations by the Senate Armed Services Committee and the House Appropriations Committee. Over decades the office has adapted to shifts in strategic guidance from administrations such as the Reagan administration, the Clinton administration, the Bush administration, the Obama administration, and the Trump administration, responding to crisis-driven reviews after events like the Gulf War, the Iraq War, and the War in Afghanistan (2001–2021).

The Director heads a staff of civilian analysts, economists, acquisition specialists, and statisticians drawn from institutions including the RAND Corporation, the Center for Strategic and International Studies, the Brookings Institution, the Heritage Foundation, and academic centers such as Stanford University, Massachusetts Institute of Technology, Georgetown University, and Harvard University. The office coordinates matrixed analysts embedded with the Office of the Secretary of Defense, the Defense Logistics Agency, the Missile Defense Agency, and the National Reconnaissance Office. Staffing practices reflect collaboration with professional societies and credentialing bodies such as the Institute for Operations Research and the Management Sciences, the American Economic Association, and the Society for Risk Analysis, while also using contractor support from firms like Booz Allen Hamilton, Lockheed Martin, Boeing, Northrop Grumman, and Raytheon Technologies for specialized modeling.

Notable outputs include annual and program-specific independent cost estimates, alternatives analyses for force modernization options, and portfolio reviews that have impacted procurement decisions for systems including the Trident II (D5) missile, the Ground-based Midcourse Defense system, and the Patriot (missile system). The office produced assessments informing programs like the Small Diameter Bomb II, the Stryker, the Future Combat Systems, and the Long Range Strike Bomber (B-21) program. Reports and reviews have been cited in hearings before the Senate Appropriations Committee, the House Committee on Oversight and Reform, and analyses by the Government Accountability Office. Methodologies often reference standards from the Office of Management and Budget and the National Academy of Sciences.

The Director’s analyses shape decisions by the Defense Acquisition Board, influence milestones such as Milestone A, Milestone B, and Milestone C approvals, and inform trade-offs among cost, schedule, and performance that affect contracts managed by entities including the Defense Contract Management Agency and the Naval Sea Systems Command. The office’s independent cost estimates have altered Congressional appropriations for major programs and guided program restructuring for initiatives like the Future Vertical Lift effort, the Next Generation Air Dominance program, and shipbuilding plans affecting the Naval Sea Systems Command and the Military Sealift Command. Interaction with the Chief of Naval Operations, the Chief of Staff of the Army, and the Chief of Staff of the Air Force situates the office at the nexus of strategic planning and resource allocation.

Directors have included senior analysts and former officials with backgrounds at institutions such as RAND Corporation, Congressional Budget Office, Office of Management and Budget, Department of the Navy, and Defense Intelligence Agency. Past holders have engaged with policy leaders including the Secretary of Defense and testified before the Senate Armed Services Committee and the House Armed Services Committee on programs like the F-35 Lightning II and the Virginia-class submarine. Prominent tenures are often noted for major program reviews, acquisition reform initiatives, and responses to congressional directions from members such as John McCain, Adam Smith (Washington politician), and Jack Reed (politician).

Category:United States Department of Defense offices