Accession Number:

ADA275796

Title:

Meeting the Requirements for Lease vs Buy Analysis: A Case Study

Descriptive Note:

Corporate Author:

PROGRAM MANAGEMENT ASSOCIATES INC SILVER SPRING MD

Personal Author(s):

Report Date:

1993-09-01

Pagination or Media Count:

24.0

Abstract:

With the recently-released OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Program the issue of how to perform a useful cost-benefits andor cost-effectiveness analysis to assist government acquisition is once again on the table in the cost analysis community. Experience has shown that cost analysis is an ever-changing science, and modeling efforts are continuing to keep in step with new requirements and to reflect new practices. This paper discusses a model developed to assist the National Oceanic and Atmospheric Administration NOAA with lease-vs. buy analysis for the Fleet Replacement and Modernization FRAM Program. This model incorporates the latest OMB guidance and is flexible enough to meet changing economic and market conditions as well as changes in government and business practice. The NOAA Economic Model NEM was developed to support the ship acquisition decision and meet federal requirements for cost analysis. The NEM is the result of extensive primary and secondary research, working closely with the NOAA FRAM Program Manager PM, and an Independent Verification and Validation IVV by an internationally recognized consulting firm with specific experience in ship acquisition.

Subject Categories:

  • Administration and Management
  • Information Science
  • Economics and Cost Analysis
  • Government and Political Science
  • Theoretical Mathematics
  • Marine Engineering
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE