An Analysis of Quantity-Split and Nonrecurring Costs under Competitive Procurement Environment.

Abstract

This study addresses two important issues related to establishing a second source and managing a program under dual source competition. The first relates to the issue of estimating nonrecurring costs. The second relates to the issue of dual award quantity-split in order to maintain a competitive environment. In dual sourcing decisions, it is necessary that the nature and extent of prospective second source's nonrecurring costs be fully analyzed. Nonrecurring costs are important since they represent those investment costs which must be incurred before the second source produces any output. Several nonrecurring cost estimation models, both parametric and nonparametric, are examined. Five different quantity-split models are analyzed to evaluate each model's strength and weakness in cost performance and its ability to cope with contractor gamesmanship.

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Document Details

Document Type
Technical Report
Publication Date
Sep 30, 1985
Accession Number
ADA163028

Entities

People

  • Dan C. Boger
  • Shu S. Liao

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Engineered Resilient Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Business Administration
  • Computer Programs
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Fixed Price Contracts
  • Government Procurement
  • Governments
  • Management Personnel
  • Organizational Structure
  • Procurement
  • Production Engineering
  • Systems Engineering
  • Test And Evaluation
  • Test Equipment
  • Test Facilities

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis