The Applicability of 'Should Cost' to the Procurement Process

Abstract

As major weapons systems become more complex, it becomes increasingly more difficult to accurately estimate the cost. Various costing techniques have been used in an attempt to accurately estimate the contract price of modern weapon systems with varying degrees of success. 'Should cost' analysis has become increasingly more important, in the eyes of some, as the best approach in a noncompetitive procurement situation. Currently, the Army, the Air Force, the Navy and GAO all conduct 'should cost' studies using various approaches. In the paper, an attempt is made to gain the feelings of Defense contractors concerning the application of Government 'should cost' analysis. The author of the paper has made several recommendations, based upon data available, concerning the limitations of and the application of 'should cost' analysis.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1974
Accession Number
AD0777867

Entities

People

  • Richard W. Haight

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Business Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Cost Reductions
  • Costs
  • Government Procurement
  • Governments
  • Industrial Engineering
  • Intercontinental Ballistic Missiles
  • Linear Programming
  • Materials
  • Procurement
  • Test And Evaluation

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis
  • Systems Analysis and Design