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Cost of Late Delivery for Post Award Consideration
DEFENSE LOGISTICS AGENCY RICHMOND VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS MANAGEMENT SUPPORT OFFICE
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This study provides contracting officers and administrators with cost data for use in negotiating consideration with delinquent contractors. Alternative ways of estimating the pertinent costs were reviewed, and the most appropriate methods were selected. Analysis of direct costs involved data from both engineered time standards and Activity Based Costing, as well as inputs from most of the supply centers. Indirect costs i.e. costs of carrying additional inventory were estimated using a modification of the approach used in precursor studies. Cost estimates are provided which are appropriate for determining consideration to be sought for late delivery for each supply center. In addition, indirect cost estimates are provided for each Federal Supply Class. Consideration, Delinquent, Delivery, Cost.
APPROVED FOR PUBLIC RELEASE