Feasibility of Applications of Competition Decision - Assist Package (CDAP) to Spare Parts
Abstract
Defense Acquisition Regulation Supplement No. 6, DoD Replenishment Parts Breakout Program, 1 June 1983, prescribes a screening of replenishment parts designed to reduce costs by breaking out parts for purchase from other than prime weapon system contractors. The US Army Audit Agency recommended that a cost model be constructed and implemented to (a) estimate potential costs and price reductions attributable to breakout or increased competition, (b) compare the two figures, and (c) identify whether breakout or competition is cost effective. In September 1983, the Army Procurement Research Office (APRO) published the Competition Decision- Assist Package (CDAP), APRO Study Report 82- 08, which described an automated model designed to calculate estimates of recurring costs associated with two producers involved in a competitive production effort. This model had been developed as a tool to assist in the economic evaluation of production competition for a major weapon system. The objective of this study was to determine if it is feasible and beneficial to modify the existing CDAP model so it can be applied to spare parts breakout or competition as an economic analysis model. While the CDAP model may be useful for some major assemblies/subassemblies where an extensive manpower effort for developing model input is warranted, it is impractical as a general purpose economic analysis model for spare parts breakout or competition. Other, more appropriate models exist.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1985
- Accession Number
- ADA154716
Entities
People
- B. L. Stewart
- V. G. Lankford