Business Models for Cost Sharing and Capability Sustainment

Abstract

Cost sharing in defense acquisition, with contractors sharing part of the burden of research development, test, and evaluation (RDT&E) costs, has been suggested as a way of reducing the liability of governments to program cost overruns. While capping the costs of RDT&E and production is an excellent objective, incentivizing contractors may benefit from business models that span the entire lifecycle of a program. The potential to share the risk of cost overruns outside of RDT&E and production, and into the operations and support (O&S) area provides a powerful incentive to get contractors to "buy in" to cost sharing, and to control total program lifecycle costs.

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Document Details

Document Type
Technical Report
Publication Date
Apr 30, 2012
Accession Number
ADA563333

Entities

People

  • Michael Pryce

Organizations

  • University of Manchester

Tags

Communities of Interest

  • Air Platforms
  • Ground and Sea Platforms
  • Human Systems
  • Space

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Case Studies
  • Commerce
  • Complex Systems
  • Contractors
  • Contracts
  • Cost Overruns
  • Costs
  • Fighter Aircraft
  • Governments
  • Military Acquisition
  • Organizational Structure
  • Procurement
  • Short Takeoff Aircraft
  • Sustainment
  • Test And Evaluation

Readers

  • Civilian Systems Systems Program Capability Development and Upgrade Support Activity Expense and Pay Management.
  • Economics
  • Government Contracting/Procurement.