Planning of Defense Projects

Extant empirical research on the management and governance of major public projects generally focuses on the infrastructure or construction sector. There is a need to increase knowledge of the considerable portion of public spending efense projects, as these projects are subject to different conditions and characteristics. In this chapter, we present selected findings from 10 years of empirical research on defense project management at the Norwegian Defence Research Establishment (FFI). The research presented is based on analysis of data from the defense sector in Norway, as well as international data from NATO countries and agencies through international collaborative studies. Results show that improved planning for effective management of defense projects is essential for meeting security needs and managing resources wisely. Our findings emphasize key considerations for front-end planning of defense projects: early decisions are crucial, organizational aspects are vital for accurate cost estimation, and sustainability needs new top-down policies. Implement strong control, clear prioritization, data-driven decisions, and transparency to address principal-agent challenges and mistrust. Carefully consider acquisition forms; off-the-shelf i.e. Non-Developmental Items, solutions can reduce project risk if market and operational conditions allow. Additionally, be mindful of military cultural perceptions, as they can affect the feasibility of off-the-shelf options. Finally, we recommend six policy implications for improved planning of defense projects.