Statistical Risk Properties of the Logistic Support Cost Commitment,
LOGISTICS MANAGEMENT INST WASHINGTON DC
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In recent years, several new contractual arrangements have been devised to estimate, target, and track logistic support costs during the acquisition phase. One of these is a contractual mechanism known as a Logistic Support Cost Commitment LSCC, sometimes referred to as a Support Cost Guarantee. The objective of the LSCC is to motivate the contractor to design his equipment to have reduced logistic support costs through increased reliability and maintainability RM when fielded. This report documents research into the statistical properties of the LSCC. The LSCC utilizes one of a broad class of statistical estimators, which are complex mathematical functions of simpler estimators whose statistical properties are well known. In the LSCC case, the complex estimator is a cost function, and incorporates such simpler estimators as rates of occurence, durations of activity, and physical distribution of activity. It also includes constant cost rates. The research documented is primarily mathematical. It does not treat in-depth the numerous qualitative issues regarding LSCC use.
- Operations Research