An analysis of quantity-split and nonrecurring costs under competitive procurement environment. Volume 1
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Authors
Boger, Dan C.
Liao, Shu S.
Subjects
Cost estimation
Dual Source Competition
Dual award Quantity allocation
Non-recurring cost
Quantity-split
Dual Source Competition
Dual award Quantity allocation
Non-recurring cost
Quantity-split
Advisors
Date of Issue
1985-09
Date
1985-09
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
This study addresses two important issues related to establishing a second source and managing a program under dual source competition. The first relates to the issue of estimating nonrecurring costs. The second relates to the issue of dual award quantity-split in order to maintain a competitive environment. In dual sourcing decisions, it is necessary that the nature and extent of prospective second source's nonrecurring costs be fully analyzed. Nonrecurring costs are important since they represent those investment costs which must be incurred before the second source produces any output. Several nonrecurring cost estimation models, both parametric and nonparametric, are examined. Five different quantity-split models are analyzed to evaluate each model's strength and weakness in cost performance and its ability to cope with contractor gamesmanship
Type
Technical Report
Description
Series/Report No
Department
Identifiers
NPS Report Number
NPS-54-85-08
Sponsors
Naval Air System Command, Cost Analysis Division under work order
N0001985WR5279W.
Funder
N0001985WR5279W
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.