By Mark Lorell
A couple of analyses have lately been performed in efforts to replace technical price versions and price estimating relationships for fixed-wing strive against plane, particulary in mild of the various cost-saving measures which have been initiated over the last decade. This document specializes in aqguisition reform or the establishment of adjustments in executive acquisition procrsses or within the dating among the govt. and division of safety primes.
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Extra info for An Overview of Acquisition Reform Cost Savings Estimates
Estimates of savings claimed from multiyear production contracts are presented in Chapter Five. The final chapter presents in the form of tables all the cost savings estimates from the entire report. Most of the tables have a column labeled “estimate quality” that distinguishes between three kinds of estimates. The highest-quality estimate, labeled “actuals,” signifies that the estimate of AR savings was based on actual R&D and production cost data from the specific item under consideration, compared to earlier actuals for the program prior to the imposition of AR.
Louis, Missouri; Magnavox, Fort Wayne, Indiana; Lockheed Martin, Moorestown, New Jersey; and Raytheon, Bedford, Massachusetts. 9 By mid-1995, the results of these efforts began to be reported back to the high-level DoD leadership. These results, however, were somewhat less encouraging than initial expectations. The Regulatory Cost Premium Working Group focused its primary efforts on actions to mitigate the effects of the top 24 cost drivers, identified by the C&L study, which accounted for 75 percent of the DoD regulatory cost premium.
By October 1998, 300 contractor facilities, including representatives of more than 80 percent of the top 200 DoD contractors, had participated in SPI. 14 DCMC closely tracked the progress of SPI and collected considerable data on SPI cost savings and cost avoidance, which were certified by DCAA. Since the data are collected primarily by facility and by broad category of block change, however, it is difficult to estimate the overall regulatory cost premium savings that have accrued to DoD ______________ 11General Accounting Office, Acquisition Reform: DoD Faces Challenges in Reducing Oversight Costs, GAO/NSIAD-97-48, January 1997.