Directed Licensing: An Evaluation of a Proposed Technique for Reducing the Procurement Cost of Aircraft,
RAND CORP SANTA MONICA CALIF
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The study evaluates the feasibility of introducing price competition into military aircraft procurement by the technique of directed licensing, whereby the Government obtains from a weapon system developer, a commitment for rights to production data and an agreement to license whomever the Government designates. Case studies of related types of aircraft procurement are presented, showing that competitive bidding has resulted in substantial savings as compared to sole-source procurement. Techniques for moving aircraft production from one manufacturer to another are described to indicate the technical feasibility of the directed licensing concept, and a minimum-risk way in which directed licensing could be tried is outlined. Although this study focuses on aircraft procurement, the results should be equally applicable to procurement of other complex weapon systems.
- Logistics, Military Facilities and Supplies