Allocation of Operations and Support Cost Targets Study
Abstract
The Air Force wants to hold contractors responsible for product performance during operational use. The use of an Operations and Support (O &S) cost guarantee is one such method. However, for industry there is a general reluctance to offer these guarantees, because of the contractor's inability to determine the risk involved, and the operating cost of the delivered product. Although the government's position on the use of O&S cost guarantees is not known, there is increasing emphasis on warranties that are similar to an O&S cost guarantee. Examples are Reliability Improvement Warranties, the KC-10 Warranty Program, the service life policy of the C-17, and the product-warranty provisions in the 1984 Defense Department Appropriations Bill. This study develops a procedure for allocating government aircraft system cost targets into manageable system component subtargets. This procedure uses standard statistical techniques, the central limit theorem, regression analysis, and the Program Evaluation and Review Technique (PERT). Statistical cost equation values are derived using Air Force 66-1 data, the Air Force Visibility and Management of Operations and Support Cost (VAMOSC) data, and engineering judgement.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 05, 1984
- Accession Number
- ADA158639
Entities
People
- E. O. Wehlander
- G. W. Tyner
- J. O. Kolson
Organizations
- Vought