Boeing's Integrated Defense Systems Restructuring: Significant and Preventable Cost Impacts to Army Aviation Programs
Strategy research rept.
ARMY WAR COLL CARLISLE BARRACKS PA
Pagination or Media Count:
The Boeing Companys 2002 corporate restructuring, creating todays Integrated Defense Systems IDS, added tens of millions of dollars to current Army aviation program costs. The new IDS accounting structure enabled the company to shift expenses from inefficient to efficient programs. At the Boeing Philadelphia and Boeing Mesa facilities, where the Armys CH-47FG Chinook and AH-64AD Apache Longbow are built and remanufactured, the additional costs will possibly exceed 68M and 71M, respectively, over a six year period CYs 03-08. Within an environment where defense contractors wield increasing power, it is imperative that the ArmyDoD exercise due diligence and leverage when required, to ensure the cost protection of Service programs. There are tools available to assist the Services in this undertaking, one such formidable alternative being the proactive application and enforcement of cost accounting standards. Applied appropriately, these flexible standards enable contractor agility while protecting Government interests.
- Administration and Management
- Defense Systems