An Alternative Method for the Employment of the Should Cost Concept
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The procurement costs of military hardware have risen dramatically in recent years. Presently, there is a great deal of pressure exerted on military officials to control the rising procurement costs. One of the more promising techniques being used toward this end is known as Should Cost Analysis, a cost analysis technique that provides an independent cost estimate for production contracts. Currently, the Army, the Navy, the Air Force, and the General Accounting Office GAO all conduct independent should cost analysis whenever they deem it appropriate to do so. The paper proposes that all future should cost studies be controlled and conducted by the GAO alone. The result should be a more cost-effective application of the should cost concept.
- Logistics, Military Facilities and Supplies