Accession Number:

AD0779359

Title:

The 'Should Cost' Concept

Descriptive Note:

Student essay

Corporate Author:

ARMY WAR COLL CARLISLE BARRACKS PA

Personal Author(s):

Report Date:

1973-12-28

Pagination or Media Count:

21.0

Abstract:

In an effort to reduce cost growth and overruns on defense contracts, new approach to cost analysis has been developed and implemented by DOD agencies. The new approach, called the should cost concept, has been used by all the services with significant savings reported. Some members of congress, Senator William Proxmire in particular, have challenged these claims, suggesting that the costs of performing a should cost study outweigh potential savings. Five of the first studies conducted by the Army have been examined. Of these, two studies were analyzed in detail to determine their value in establishing realistic negotiation objectives, identifying short-and long-range management improvement programs and in achieving cost savings for the government. Modified author abstract

Subject Categories:

  • Economics and Cost Analysis
  • Military Operations, Strategy and Tactics

Distribution Statement:

APPROVED FOR PUBLIC RELEASE