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WCA Chapter Virtual Luncheon: Weighted Residuals in CER Development Using Escalation Indices
Please join us for this month’s Washington Capital Area Chapter (WCAC) International Cost Estimating and Analysis Association (ICEAA) Luncheon:
SUBJECT: WCAC ICEAA July 2026 Luncheon: Weighted Residuals in CER Development Using Escalation Indices
PRESENTED BY: Timothy P. Anderson
TIME: July 29, 2026 | 12:00 to 1:00pm Eastern
SUMMARY
Typical CERs contain older data points (1980s era) and newer data points (2020s era), along with everything in between, with older data points carrying just as much weight in the CER development process as newer data points. But manufacturing techniques, acquisition practices, and systems engineering processes have changed over time, which could impact cost. Moreover, the older the data point, the more it is subject to adjustment for escalation in the normalization process, so older actual costs are less accurate than newer actual costs because escalation adjustment factors are themselves estimated values. Therefore, older data should be less impactful in the CER development process than newer data. This paper describes a robust weighting process, based on escalation indices, that enables cost analysts to use all relevant data points in the CER development process while simultaneously de-emphasizing those with less importance, and emphasizing those with greater importance
Speaker:
Timothy P. Anderson is an expert senior cost analyst at KBR, with over 30 years of experience, supporting one of KBR’s key government customers. Prior to joining KBR, Mr. Anderson was a Principal Engineer at The Aerospace Corporation where he previously served as the Director of the Integrated Cost and Schedule Analysis Department, and prior to that, as the Aerospace Director of NASA Program Assessments. Mr. Anderson is also a highly respected member of the faculty of the Naval Postgraduate School’s Systems Engineering Department, teaching master’s level courses in cost estimation, risk analysis, and operations research.
Microsoft Teams meeting
Join: https://teams.microsoft.com/meet/212875068709520?p=4ZndrNobU130sZzs4C
Meeting ID: 212 875 068 709 520
Passcode: Yz2bA7DD
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+1 929-352-1792,,966681961# United States, New York City
Phone conference ID: 966 681 961#