Investigation of the Impact of Rent-Across-the-Board.
LOGISTICS MANAGEMENT INST WASHINGTON D C
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Under Rent-Across-the-Board rent would be collected for government-owned facilities based upon mere possession by contractors regardless of amount of use on either government or commercial products. The impact of rent-across-the-board on product costs was found to be less than four percent by two methods. One method was a case study of a contractor who had bought an Industrial Reserve Plant. The second method was an analysis of 16 airframe manufacturing plants using overall cost and equipment ratios. The rental rates given in the Armed Services Procurement Regulation were examined and found to be too low and not comparable to commercial practice. The increase in administrative costs to adopt rent-across-the-board is analyzed. Finally, contractor comment on rent-across-the-board is presented and discussed. Author
- Administration and Management
- Logistics, Military Facilities and Supplies