Survey of DoD Profit Policy and Further Analysis of the Estimation Theory

Abstract

The current weighted guidelines profit policy within the Department of Defense (DOD) has been the subject of numerous studies over the past four decades to determine its effectiveness within DoD. Many of the studies offer differing results as to the effectiveness of this policy and the measurements used for analysis. The central objective of this study was to conduct a survey of the weighted guidelines profit policy and use event analysis to estimate the size of prizes awarded to defense contractors. To address this issue, a survey of the weighted guidelines profit policy was completed with consideration of an economic approach to the weighted guidelines policy. Analysis of four missile defense systems was conducted to measure the size of prizes awarded for missile contract awards. Findings of the study are limited. The present profit policy within DoD can be improved upon with an economic approach to the weighted guidelines profit policy. However, conclusive findings were not observed for analysis of economic profit within the defense missile industry. This was due to the limited number of contests analyzed in this study.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1999
Accession Number
ADA374132

Entities

People

  • Gregory L. Boll

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Aircrafts
  • Airframes
  • Anti-Radiation Missiles
  • Commercial Aircraft
  • Contractors
  • Contracts
  • Defense Industry
  • Defense Systems
  • Department Of Defense
  • Economic Analysis
  • Economic Models
  • Government Procurement
  • Governments
  • Investments
  • Money
  • Procurement

Fields of Study

  • Political science

Readers

  • Defense Financial Management and Audit.
  • Operations Research
  • Systems Analysis and Design