Cost Analysis for Competitive Major Weapon Systems Procurement: Further Refinement and Extension
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Aerospace industry capacity utilization CU rate was found to be a major price determinant of major weapons systems. This study examines the feasibility and desirability of using more firm-specific measures of CU. A reliable method of forecasting the aerospace industrys CU is developed. Our study also finds that the sole source program costs are also related to the level of CU. In addition to CU, the magnitude of savings from second sourcing is also affected by the quantity split between the two suppliers. Contractor teaming as an acquisition strategy is assessed.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies