Army Reverse Engineering Pilot Program Savings Validation
Final rept. Jun 1988-Mar 1989
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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The Army Materiel Command AMC has been assigned the responsibility to establish and monitor the Army reverse engineering program. AMC has implemented the reverse engineering program through selected AMC Major Subordinate Commands MSCs. The basic AMC plan was 1 select the replenishment parts for reverse engineering, 2 contract out the reverse engineering task, 3 prepare a guidelines and procedures handbook, 4 use the reverse engineering technical data packages TDPs to make competitive reprocurements, and 5 have the Army Procurement Research Office APRO validate the cost savings estimates. The results of the Armys reverse engineering efforts have been documented in an Army Reverse Engineering Pilot Program AREPP Report that was submitted to the Department of Defense on 3 May 1988. Selected MSCs have identified replenishment parts, secured TDPs, and awarded reprocurement contracts. APRO and AMC estimates for reverse engineering costs, return on investment ROI, instant savings, 5-year savings, and life cycle savings differ in magnitude only. APRO estimates are more consecutive, but the analysis has shown that savings were achieved from the Armys reverse engineering efforts. The savings achieved from the first procurements after TDPs were developed under the reverse engineering program were almost twice the cost of reverse engineering for those items. In addition the 5-year and life cycle savings estimates show that during the life of these items the savings may be anywhere from 3 to 9 times the cost of the reverse engineering efforts.
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