The Applicability of 'Should Cost' to the Procurement Process
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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As major weapons systems become more complex, it becomes increasingly more difficult to accurately estimate the cost. Various costing techniques have been used in an attempt to accurately estimate the contract price of modern weapon systems with varying degrees of success. Should cost analysis has become increasingly more important, in the eyes of some, as the best approach in a noncompetitive procurement situation. Currently, the Army, the Air Force, the Navy and GAO all conduct should cost studies using various approaches. In the paper, an attempt is made to gain the feelings of Defense contractors concerning the application of Government should cost analysis. The author of the paper has made several recommendations, based upon data available, concerning the limitations of and the application of should cost analysis.
- Logistics, Military Facilities and Supplies