Accession Number:

ADA275656

Title:

Business Base Analysis - The Missing Link

Descriptive Note:

Corporate Author:

ARMY TANK-AUTOMOTIVE COMMAND WARREN MI DIRECTORATE FOR SYSTEMS AND COST ANALYSIS

Personal Author(s):

Report Date:

1993-09-01

Pagination or Media Count:

24.0

Abstract:

Cost and financial analysis of defense contractors is not enough to determine if a company is capable of delivering a service or product at a fair and reasonable price. In todays environment we need to do more than just run the numbers to determine the best offer or to successfully complete a government contract. The business base analysis can provide valuable information to link other analyses and assure we are getting best value at an equitable cost. As the product mix of a company changes the indirect cost of their product will fluctuate. It is the anticipation of what per cent of their business will be government vs. commercial that can provide a more accurate estimate of the ultimate cost. A fair assessment of where the company sales volume is may assist in developing a more realistic cost estimate. Defense contractors are desperately trying to capture salesrevenues of any kind. This attempt to strengthen their markets in Foreign Military Sales and commercial products has a direct effect on cost analysis of future and existing defense contracts.

Subject Categories:

  • Economics and Cost Analysis
  • Personnel Management and Labor Relations
  • Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE