Accession Number:

AD0758820

Title:

Should Cost/Will Cost/Must Cost - A Theory on the Cause of Cost Growth

Descriptive Note:

Corporate Author:

ARMY SAFEGUARD SYSTEMS OFFICE ARLINGTON VA

Personal Author(s):

Report Date:

1972-06-01

Pagination or Media Count:

69.0

Abstract:

Incentives exist for procurement to establish the most favorable contract negotiating positions based on what a system should cost. This appears to contradict an establishment for resource allocation purposes best estimates of what a system will cost. The winner of the battle of cost estimating philosophies is must cost, decided by the prevailing monopsonistic market conditions. This highly competitive environment of one buyer and many sellers is dedicated to the proposition that costs must be lower.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE