Weighted Guidelines: An Empirical Investigation of Research and Development Acquisitions.
Abstract
Recent changes in DOD profit policy modified the weighted guidelines method of determining prenegotiation profit objectives. One Research and Development (R&D) contracting organization expected that this modified weighted guidelines method provided prenegotiation profit objectives that were too low to be consistent with the economic realities associated with the R&D market-place. Two research objectives were employed in this study to compare the difference between prenegotiation profit objectives and final negotiated profits for R&D contracts categorized in two groups: the R&D contracts in accordance with Defense Acquisition Circular (DAC) 76-233, and those R&D contracts in accordance with Defense Procurement Circular 76-3. The research plan was to determine if recent changes to DOD profit policy had inadvertently resulted in unrealistically low prenegotiation profit objectives. The study revealed unexpected results. The random sample of R&D contracts indicated no significant difference between the prenegotiation profit objectives and final negotiated profits using the DAC 76-23 method of computing weighted guidelines.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1982
- Accession Number
- ADA123040
Entities
People
- Henri J. Pousardien
- Michael R. Craig
Organizations
- Air Force Institute of Technology