Variable Cost to Procure

Abstract

Variable Cost to Procure (VCP) parameters were developed for HQ, ARRCOM for use in procurement of secondary items, both Army Stock Fund (ASF) and PA Secondary (PAS) funded. The VCP is basically a procurement setup cost which is incurred each time ARRCOM initiates a request to replenish its stock of an individual secondary item. Included in the VCP parameters are direct and indirect labor, APP, and support costs for (a) processing the purchase request (i.e. a Procurement Work Directive (PWD) to procurement, (b) the purchase action, and (c) the receipt and payment. The new parameters will be entered in the Materiel Management Decision (MMD) file in the Commodity Command Standard System (CCSS) where they will be extracted as required for use in various study runs (i.e., the COST DIFFERENTIAL (COSDIF) computations and the Economic Order Quantity/Variable Safety Level (EOQ/VSL) computations). The approved cost breakout for the VCP parameters is for (1) Low Dollar Value (LDV) orders (less than $10K), (2) High Dollar Value (HDV) orders (equal to or greater than $10K), and (3) Basic Ordering Agreements (BOAs).

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Document Details

Document Type
Technical Report
Publication Date
Mar 12, 1981
Accession Number
ADA100348

Entities

People

  • Norman H. Trier

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Business Administration
  • Central Processing Units
  • Civilian Personnel
  • Commerce
  • Computer Program Documentation
  • Computer Programs
  • Computers
  • Contract Administration
  • Contractors
  • Contracts
  • Control Simulators
  • Engineering
  • Logistics
  • Payment
  • Plastic Explosives
  • Procurement
  • Small Business

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.