Evolution of the shipbuilding escalation clause.
Jones, Joseph Matthew
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This thesis is an assessment of concerns expressed by government sources regarding the extent and the impact of current shipbuilding contract escalation coverage. The review encompasses the evolution of the current coverage and provides an examination of; how and why it has come about, the complexity of the escalation clause, the extent of coverage and the effects of the current clause. The analysis emphasizes the change in the Navy's approach to escalation coverage that has occurred since 1962. It was concluded; that the ship acquisition environment has influenced the development of the current escalation clause, that escalation coverage has become progressively more comprehensive and that the use of the current escalation clause does have some adverse effect on the shipbuilding process.
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