Cost benefit analysis of government furnished equipment versus contract furnished equipment for the procurement and integration of the MK-44 chain gun with the United States Marine Corps Expeditionary Fighting Vehicle
Howard, James E.
Collins, Patrick B.
Crouch, Thomas W.
Gates, William R.
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The Direct Reporting Program Manager (DRPM) for the USMC's Expeditionary Fighting Vehicle (EFV) is conducting an analysis of two acquisition tactics concerning the commercial procurement of the MK-44 to be integrated with the EFV. The EFV is manufactured by General Dynamics (GD) and the MK-44 chain gun is manufactured by Alliant Techsystems Inc. (ATK). The analysis is the topic of this thesis and will assist the DRPM in determining which of two tactics the Government should use for the procurement of the MK-44. The two arrangements of acquiring and integrating the MK-44 are 1) to procure the MK-44 as government furnished equipment (GFE) or 2) to procure the MK-44 as contractor furnished equipment (CFE). The fundamental difference is that a GFE arrangement will provide a direct contractual relationship between the Government and ATK, whereas, a CFE contract will eliminate that relationship as ATK will become a sub-contractor to GD, the prime contractor for the EFV. These two options present a variety of issues, both tangible and intangible, for analysis in determining which approach is most advantageous, with respect to cost and risk, to the Government.
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