DEFENSE PROCUREMENT AND PUBLIC UTILITY REGULATION

Abstract

This study compares the control of procurement prices and profits with the system applied to public utilities. The possible application of public utility regulation to weapon system producers is also considered but rejected. Despite differences in the reasons for regulation and in profit determination, both systems base prices and profits on costs. Since the major procurement problems stem from the cost-based nature of profits, they would not be solved by public utility regulation. Policy emphasis should be on minimizing the need for regulation by encouraging competition through total-program-package procurements, second-sourcing and other atypical acquisition strategies.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1967
Accession Number
AD0659731

Entities

People

  • George R. Hall

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Business Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Department Of Defense
  • Economic Analysis
  • Governments
  • Investments
  • Law
  • Military Procurement
  • Procurement
  • Public Administration
  • Public Policy
  • United States
  • Weapon Systems

Fields of Study

  • Economics
  • Political science

Readers

  • Government Contracting/Procurement.
  • Operations Research
  • Theoretical Analysis.