An Examination of the Rate Variance Formula for the A-10 Air Vehicle.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OHIO SCHOOL OF ENGINEERING
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The first two lots of production model A-10 close air support aircraft are being purchased under variable lot options. These options allow for the quantity to vary plus or minus 50 from the nominal, or base-line quantities. Baseline prices were established and Rate Variance Formulas RVF govern the prices for the other quantities. The Fairchild Republic RVF covers the Air Vehicle. An examination was made of each element within this RVF. The examination included the development and treatment of the costs within each cost element. Comparisons were made with cost estimating relationships developed from previous research, existing theory regarding the manner in which costs vary with changes in quantity and generally accepted principles and practices. Where the available information was inconclusive, sensitivity analysis was performed. Modified author abstract
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