USE OF AN EMPIRICAL PRODUCT-ORIENTED COST DATA BANK FOR PREDICTING AND NEGOTIATING FUTURE SATELLITE SYSTEM COSTS.
Technical rept. 1 Jul 63-12 Jun 67,
AEROSPACE CORP EL SEGUNDO CALIF EL SEGUNDO TECHNICAL OPERATIONS
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This report outlines and analyzes one approach toward solving the generalized problem of poor cost estimating procedures within the aerospace industry. This approach deals with the replacement of the traditional functional system of estimating, negotiating and reporting costs with the product or end item oriented technique. Specifically, the military Comsat IDCSP program end item cost system is described, and the manner by which it was used to form a comprehensive cost data bank and the subsequent usage of the data bank to estimate new program costs are analyzed. It also describes the benefits accruing to the understanding of both parties in negotiating contract costs that have been estimated on a detailed product oriented basis. The actual re-estimating procedures that were utilized on a current Comsat program are described in detail. Author
- Administration and Management
- Unmanned Spacecraft