An Economic Analysis of Lay-Offs.
Student project rept.,
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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This study is an investigation into the economics of government contractor lay-offs due to government directed schedule delays or permanent reductions of effort. The topic becomes increasingly important in the dynamic political and business environment in which weapon systems are acquired today. By using the analysis process developed in this study, the program office should be able to plan and execute level of effort delays and reductions in the manner most cost effective to the government. The results show that for both short-term and permanent reductions of personnel, the optimum economic solution is neither to lay off all idle employees or to keep all on the payroll. In most cases there are particular numbers of layoffs that minimize either the government or the combined government-contractor expenses. In general, the best solution will be to minimize the combined expenses and negotiate the cost with the contractor to reduce the government expense.
- Economics and Cost Analysis
- Personnel Management and Labor Relations