AIRCRAFT CO-PRODUCTION AND PROCUREMENT STRATEGY,
Abstract
An analysis of the co-production in 1955-1964 of four U.S. military aircraft--the T-33A, P2V-7, F-86F, and F-104J--by Japanese firms. The process of transferring the required manufacturing technology is examined. For the F-104J the costs of transfer are also analyzed. These costs were lower than expected--sufficiently so, that when combined with Japan's labor-cost advantage, the Japanese-built F-104Js cost at least 10 percent less than Lockheed's likely selling price. Co-production's aid to the development of Japan's aviation industry and to making the acquisition of military aircraft politically feasible has important implications for foreign aid policy. Co-production also suggests that conventional views about the costs and benefits of reprocuring weapon systems only from the developer may be erroneous. A policy of separating programs for contracting purposes could greatly expand the role of competition and reliance on market-generated prices in weapon system procurement. The benefits of such a policy could be substantial. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1967
- Accession Number
- AD0659373
Entities
People
- G. R. Hall
- R. E. Johnson
Organizations
- RAND Corporation