Rate Stabilization at Navy Industrial Fund Research, Development, Test and Evaluation Activities.

Abstract

The 13 Navy industrially funded RDT and E activities implemented rate stabilization in October 1976 under protest. With rate stabilization, DOD industrially funded activities bill their customers on the basis of stabilized billing rates that cannot be adjusted during the fiscal year as costs change. A basic objective is to allow customers to plan for cost escalation during the fiscal year as costs change. A basic objective is to allow customers to plan for cost escalation during a fiscal year by using rates established up to 15 months in advance of the fiscal year start. This thesis examines the operating results of rate stabilization at NIF RDT and E activities 18 months after implementation, in order to determine the degree of success in meeting rate stabilization objectives. Questionnaires and Financial Statements were used to gain research data. Conclusions are that the RDT and E activities and their customers have opinions that rate stabilization entails more disadvantages than advantages. Rate stabilization is not meeting the objective for which it was implemented since a majority of the RDT and E customers use the rates in budgeting. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1978
Accession Number
ADA057992

Entities

People

  • Donald Truman Green

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Business Administration
  • California
  • Cost Estimates
  • Department Of Defense
  • Employment
  • Financial Management
  • Lead Time
  • Management Personnel
  • Materials
  • Military Research
  • Organizational Structure
  • Personnel Management
  • Questionnaires
  • Resilience
  • Surveys
  • Test And Evaluation

Readers

  • Control Systems Engineering.
  • Government Contracting/Procurement.
  • Industrial Economics