By Mark Lorell

A couple of analyses have lately been carried out in efforts to replace technical price types and value estimating relationships for fixed-wing wrestle airplane, particulary in gentle of the various cost-saving measures which were initiated over the last decade. This record makes a speciality of aqguisition reform or the establishment of alterations in govt acquisition procrsses or within the courting among the govt. and division of safeguard primes.

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Cook and John C. Graser, Military Airframe Acquisition Costs: The Effects of Lean Manufacturing Processes, Santa Monica: RAND, MR-1325-AF, 2001. 4 Mel Eisman, Jon Grossman, Joel Kvitky, Mark Lorell, Phillip Feldman, Gail Halverson, and Andrea Mejia, The Cost of Future Military Aircraft Avionics Systems: Cost Estimating Relationships and Cost Reduction Initiatives, Santa Monica: RAND, limited document, not for public distribution, 2001. 5 Industry sites visited by RAND include Boeing Military Aircraft and Commercial Aircraft, Seattle, Washington; Boeing McDonnell Military Aircraft and Missile Systems, St.

12 SPI is intended to reduce the DoD cost premium and to eliminate many of the regulatory barriers identified by the C&L study as major DoD cost premium drivers by promoting block changes to the manufacturing and management requirements of all existing contracts on a facility-wide basis. 13 Since the launching of the initiative, SPI has clearly achieved many successes. By October 1998, 300 contractor facilities, including representatives of more than 80 percent of the top 200 DoD contractors, had participated in SPI.

In such cases, the anticipated pre-AR cost of a specific item that has not yet been developed is compared to the expected cost of that item after the imposition of AR. In other words, neither the actual cost of the item under the old system nor the actual cost of the item after the imposition of acquisition reform is known. This type of estimate is based on rational analysis, past experience, data from analogous military or commercial programs adjusted to the system under consideration, expert opinion, or similar methods.

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