The 'Should Cost' Concept

Abstract

In an effort to reduce cost growth and overruns on defense contracts, new approach to cost analysis has been developed and implemented by DOD agencies. The new approach, called the 'should cost concept', has been used by all the services with significant savings reported. Some members of congress, Senator William Proxmire in particular, have challenged these claims, suggesting that the costs of performing a should cost study outweigh potential savings. Five of the first studies conducted by the Army have been examined. Of these, two studies were analyzed in detail to determine their value in establishing realistic negotiation objectives, identifying short-and long-range management improvement programs and in achieving cost savings for the government. (Modified author abstract)

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Document Details

Document Type
Technical Report
Publication Date
Dec 28, 1973
Accession Number
AD0779359

Entities

People

  • Clifton A. Horn

Organizations

  • United States Army War College

Tags

Communities of Interest

  • Air Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Commerce
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Department Of Defense
  • Governments
  • Industrial Engineering
  • Market Economy
  • Negotiations
  • Procurement
  • Standards
  • United States
  • War Colleges

Readers

  • Life Cycle Cost Analysis
  • Public Financial Management and Budgeting
  • Systems Analysis and Design