The Design to Unit Production Cost (DTUPC): Range of Applicability to Development Procurements.
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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The merits of Design to Unit Production Cost DTUPC as a method of procurement are currently being heralded by the Department of Defense and Army. The goal of lower acquisition costs is very appealing. To date only a few contracts which have incorporated DTUPC have been awarded and only limited experience exists at this point in time. The purpose of this study was to determine the applicability of DTUPC to AMC development procurements. The findings of this study indicate that DTUPC provisions should not be applied to development procurements if contract value does not exceed 1 million or projected production contract values do not 4 million.
- Logistics, Military Facilities and Supplies