Cost Increases Related to the Producer Price Index for Titanium Mill Shapes on DOD Multiyear Contracts

Abstract

DOD is subject to the volatility in the titanium market when pricing titanium materials in its contracts for DOD aerospace programs because DOD does not have a strategic purchasing program for titanium. Long-term contracts with U.S. titanium producers could substantially mitigate the effect of unexpected price increases due to the market volatility of titanium pricing. Long-term contracts could also be beneficial to the U.S. titanium producers because the agreements provide a baseline volume, which is critical to establishing standardized processes, securing necessary capital, negotiating purchasing agreements with vendors, and planning manufacturing resources. The U.S. titanium producer investments to meet demand for titanium products, coupled with the delays in the commercial aerospace market, present an opportunity for DOD to negotiate long-term contracts at preferential rates.

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Document Details

Document Type
Technical Report
Publication Date
Oct 29, 2009
Accession Number
ADA514572

Entities

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Air Platforms
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerial Warfare
  • Aerospace Industry
  • Aircraft Industry
  • Aircrafts
  • Airframes
  • Business Administration
  • Commercial Aircraft
  • Contractors
  • Contracts
  • Economic Forecasting
  • Fighter Aircraft
  • Investments
  • Military Aircraft
  • National Security
  • Price Index
  • Procurement
  • Tactical Aircraft

Readers

  • Government Contracting/Procurement.
  • Materials Science and Engineering.
  • Strategic Security Studies

Technology Areas

  • Space