This is a report about cost estimating in naval procurement and the ability of Navy estimators, particularly in the Naval Sea Systems Command, to adequately forecast required program funding. It is also an attempt to carefully ascertain where improvements can be made. It is recognized that the cost estimating problem is extremely complex and, if at all possible, improvements should be made. Obviously, the national interest is at the heart of the matter. It is believed that specific action can be taken by NAVSEA to improve its capability and inasmuch as other government and industrial organizations interact in procurement activities so profoundly, areas are pointed to where NAVSEA may want to suggest complementary actions by organizations outside its control.


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