Multiyear Cost Modeling

Abstract

It is the common consensus that multiyear contracting is not a panacea for the defense acquisition system but it can be an effective way to reduce acquisition costs if applied with discretion. The primary challenge to those employing the multiyear strategy is to demonstrate the cost reduction vis- a-vis annual contracts. This study analyses the characteristics peculiar to multiyear contracting and the ensuing factors contributing to cost savings. The possible saving sources are identified and their applicability is analyzed. The objective of this study is to synthesize old and new techniques or factors of cost estimating into a comprehensive multiyear cost model. It is recommended that the factor estimation technique be used to to estimate MYP cost savings and emphasis be placed on the saving from manufacturing and vendor procurement.

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1985
Accession Number
ADA157668

Entities

People

  • A. J. Mandler
  • V. S. Bakhshi

Tags

Communities of Interest

  • Biomedical
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Capital Investments
  • Contractors
  • Contracts
  • Cost Reductions
  • Databases
  • Department Of Defense
  • Governments
  • Investments
  • Management Personnel
  • Manufacturing
  • Military Acquisition
  • Money
  • Production
  • Production Rate
  • Risk Analysis
  • United States

Readers

  • Government Contracting/Procurement.
  • Strategic Security Studies
  • Systems Analysis and Design