A Summary and Analysis of the Initial Application of Life Cycle Costing Techniques to a Major Weapon System Acquisition.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OHIO SCHOOL OF SYSTEMS AND LOGISTICS
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The first USAF major system acquisition program in which there was explicit consideration given to LCC was the A-XA-10 Close Air Support Aircraft competition. LCC considerations were quantified using an operating and support O and S cost model developed under Project ABLE Acquisition Based upon consideration of Logistics Effects. Air Force objectives in applying the O and S cost model were 1 to encourage contractor consideration of operating and support costs in system design, 2 to aid in source selection, 3 to aid in evaluation of engineering change proposals, and 4 to aid in determining the magnitude of award fee if any to be granted the contractor. This research has focused on the degree to which these objectives were actually met, problems encountered in meeting them, and suggestions for improving future applications of O and S cost models in LCC programs. Several major deficiencies were discovered in data use and model application that cast serious doubt on the efficacy of this first O and S cost model application and require amelioration to avoid repetition of problems in future acquisition programs. Author
- Attack and Fighter Aircraft
- Administration and Management
- Economics and Cost Analysis