Estimation and Analysis of Navy Shipbuilding Program Disruption Costs

Abstract

Changes in ship design or specifications disrupt work on a ship, and can disrupt work throughout an entire shipyard. This increases costs. Additionally, government-directed changes may be the legal basis for claims when the contractor overruns cost and schedule for any reason. Outstanding claims for equitable adjustment based primarily on alleged delay and disruption due to Government changes reached the unprecedented level of $2.5 billion in 1978. Many within the Navy would like to move the disruption issue out of the courts by paying the full cost of changes as they are implemented. This paper reports a test of the feasibility of a statistical method for fully pricing shipbuilding change manhours.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1980
Accession Number
ADA112514

Entities

People

  • Colin Hammon
  • David R. Graham

Organizations

  • Center for Naval Analyses

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Applied Mathematics
  • Business Administration
  • Contractors
  • Contracts
  • Employment
  • Engineers
  • Equations
  • Indirect Costs
  • Information Science
  • Manufacturing
  • Naval Warfare
  • Navy
  • Operations Research
  • Path Integrals
  • Procurement
  • Sheet Metal
  • Shipbuilding

Readers

  • Government and Public Administration Law.
  • Life Cycle Cost Analysis
  • Naval Architecture and Marine Engineering.