The Client

One of the largest acquisition organizations within the U.S. Department of Defense, charged with managing the design and construction of a range of ships and craft for U.S. agencies as well as foreign military sales. The organization is responsible for multibillion-dollar programs that enable the United States to maintain the world’s most advanced forward naval presence, across any mission type, in both peacetime and wartime.

The Challenge

A shipbuilding program needed to improve processes and cut costs while fulfilling the complex requirements of transformational mission systems. Because of ongoing reductions in ship procurement quantity, the client was faced with the need to reduce costs significantly. The program’s complex systems did not readily lend themselves to cost analysis, but time was short. Program executives needed a way to cut through the details and arrive at the cost reduction initiatives improvements that would have a real impact on the bottom line. With a multibillion-dollar program on the line, the client trusted the Herren team to deliver actionable insights.

The Solution

The Herren team worked together with the program office, suppliers, and government and industry subject matter experts (SMEs) to develop a should-cost position for the program’s multibillion-dollar combat and mission system proposal.

The Result

Herren’s should-cost analysis resulted in immediate cost avoidance of over $200 million, enough to offset the cost of 1,400 sailors. By relying on Herren’s disciplined analysis, the client was able to maximize the program’s budget.

Public-sector executives need expert partners who bring complexity into focus with actionable insights – and deliver maximum value. Herren has been helping leaders make better decisions since 1989. We optimize investments, manage transformational change, and shake up the status quo in our determination to maximize the value of every dollar spent. Our value-driven approach is built on everyday collaboration with clients and business partners. We work side by side with leaders and make their mission, our mission. To learn more about Herren Associates, please visit us at


“[Herren’s] thorough knowledge of AEGIS cost data, tireless effort, and timely delivery helped the AMDR
program maintain schedule… please accept my deepest appreciation for your outstanding support.”