Rate Stabilization at Navy Industrial Fund Research and Development Activities.

Abstract

Recently the Assistant Secretary of Defense (Comptroller) directed that all DOD industrially funded activities bill their customers on the basis of stabilized rates. Industrially-funded R/D activities are included in the policy change. This paper addresses the subject of stabilized rates at R/D activities -- (1) Identifying the policy change; (2) Tracing its emergence in DOD; and (3) Assessing potential impacts. The writers conclude that stabilized rates are more appropriate for non-R/D activities than for R/D activities. However, stabilized rates are workable in the R/D environment as long as one recognizes that the R/D workload is essentially a level-of-effort concept, and as long as minimal adjustments to locally established rates are made at higher levels.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1976
Accession Number
ADA035889

Entities

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  • Ernest Arnold Solberg
  • Joel David Kramar

Organizations

  • Naval Postgraduate School

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  • Weapons Technologies

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