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Accurate estimates are essential for effective planning, programming, and budgeting. Many methods are used to calculate an Estimate at Completion (EAC), but no single method proves accurate over the life of the contract. The most common techniques involve the use of performance indices to adjust the EAC. Other methods including regression and time series analysis have been developed to predict the final cost, but these methods are not widely publicized or used. Through the use of regression, we utilize the historical contract data reported in the Defense Acquisition Executive Summary database to find a mathematical relationship between the reported data and the final cost of the contract.
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