Application of Reliability Improvement Warranty (RIW) to DoD Procurements.

Abstract

The existence of a goal conflict in the buyer/seller relationship is inherent under a profit motivated system where conventional procurement techniques are used. The buyer seeks maximum performance at minimum life cycle cost and the seller seeks to maximize profit which may translate to minimizing reliability improvement costs. Experience of military and commercial procurement activities with the use of Reliability Improvement Warranties (RIW's) has led to the conclusion that the RIW may be a valuable tool in bringing buyer/seller goals into agreement by transferring the management of costs to the seller. Background material on DoD and commercial warranty experience is used to form the framework for an evaluation criteria developed by ARINC Research Corporation to test the applicability of RIW to a particular acquisition.

Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1975
Accession Number
ADA007466

Entities

People

  • Dennis Jean Allen

Organizations

  • Naval Postgraduate School

Tags

DTIC Thesaurus Topics

  • Acquisition
  • Agreements
  • Contract Administration
  • Corporations
  • Costs
  • Cycles
  • Guarantees
  • Life Cycle Costs
  • Life Cycle Management
  • Life Cycles
  • Materials
  • Procurement
  • Reliability
  • Resource Management
  • Test And Evaluation

Readers

  • Facility/Structural Engineering.
  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis