The Feasibility of a Cost-Effectiveness Assessment of Air Force Jet Engine Warranties.

Abstract

With the enactment of Public Laws (P.L. 98-212 and 98-525) warranties must be considered for DOD weapon systems. It is DOD's policy to only obtain cost effective warranties. To determine if a warranty is cost effective a cost-benefit analysis is required. There has been concern by Congress, the General Accounting Office, and the Air Force about the adequacy of the cost-benefit analyses. This study examined the nature and availability of information needed to conduct cost-benefit analysis of warranties. A theoretical model of warranty relationships was described and used to identify the information required to assess the benefits and costs of warranties. In order to limit the scope of the research, only jet engine warranties were considered. This effort is useful in that a structure for warranty cost-benefit analysis is provided. In addition, several problem areas involved in evaluating and measuring warranty costs and benefits are identified and discussed. Keywords: Air Force procurement.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1986
Accession Number
ADA175107

Entities

People

  • Deborah A. Bielling

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Air Platforms
  • Electronic Warfare
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Air Force Facilities
  • Air Force Procurement
  • Aircraft Industry
  • Business Administration
  • Cost Effectiveness
  • Economic Analysis
  • Fighter Aircraft
  • Governments
  • Jet Engines
  • Law
  • Military Acquisition
  • Organizational Structure
  • Procurement
  • Test And Evaluation
  • Turbines

Readers

  • Government and Public Administration Law.
  • Logistics and Supply Chain Management.
  • Systems Analysis and Design