Estimation and Analysis of Navy Shipbuilding Program Disruption Costs
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA INST OF NAVAL STUDIES
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Changes in ship design or specifications disrupt work on a ship, and can disrupt work throughout an entire shipyard. This increases costs. Additionally, government-directed changes may be the legal basis for claims when the contractor overruns cost and schedule for any reason. Outstanding claims for equitable adjustment based primarily on alleged delay and disruption due to Government changes reached the unprecedented level of 2.5 billion in 1978. Many within the Navy would like to move the disruption issue out of the courts by paying the full cost of changes as they are implemented. This paper reports a test of the feasibility of a statistical method for fully pricing shipbuilding change manhours.
- Administration and Management
- Marine Engineering