Accession Number:

ADA285039

Title:

Defective Pricing: An Analysis of Factors Affecting Sustention Rates and Disposition Times

Descriptive Note:

Master's thesis

Corporate Author:

AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF LOGISTICS AND ACQUISITION MANAGEMENT

Personal Author(s):

Report Date:

1994-09-01

Pagination or Media Count:

129.0

Abstract:

Defective pricing occurs when contractors fail to disclose current, accurate, and complete cost or pricing data in their proposals. Failure to submit valid data entitles the government to a refund in the amount of overpayment. With the current backlog of overage defective pricing cases and the continuing decline in sustention rates, a better understanding of the factors affecting timely and successful recoupment of defective pricing funds is needed. This research identifies factors which significantly affect sustention rates and disposition times and presents models to predict both rates and times. Factors were identified through a literature review and interviews with defective pricing experts. Analysis of variance ANOVA was used to determine the statistical significance of the identified factors. ANOVA results indicated that the following factors have the strongest impact on both rates and times alleged defect amount, number of issues, legal complexity, method of disposition, identity of prime contractor, product center, and interest The models developed explain 73.4 and 48.5 of the variation in sustention rates and disposition times, respectively. Recommendations for improving sustention rates and disposition times based on the research findings are also included. Defective pricing, Truth in Negotiations Act, TINA, Contract pricing, Government procurement, Contracts

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE