Component Breakout Computer Model Operator's Manual
Abstract
Component breakout is the process whereby the government purchases a component that was previously provided as contractor furnished equipment and provides the item to the prime contractor to be incorporated into the end item. DOD policy concerning breakout and states that it should be used if substantial net cost savings will probably be achieved and this action will not jeopardize quality and performance. Concentration of breakout effort should be on the components of the high dollar value systems, since there represent the highest cost and offer the potential for the greatest savings. In order to realistically estimate the savings associated with component breakout, the government must be able to compute the offsetting costs associated with component breakout, the government must be able to compute the offsetting costs associated with the government furnished equipment operation. This computer model is a user- friendly, menu-driven tool that can be easily used to estimate component breakout offsetting costs. In addition an estimate of the lost opportunity costs, the potential loss to the government of devoting time and effort to components at the expensive of the total system, are included in the results.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 29, 1987
- Accession Number
- ADA181604
Entities
Organizations
- Universal Energy Systems