Realigining contract incentives for the non-competititive environment of the US shipbuilding industry
Alvarran, Dominic T.
de Weck, Oliver L.
Thomas, Mark W.
MetadataShow full item record
It is suspected that the lack of commercial shipbuilding available in the US resulting in the consolidation of the US shipbuilding industry as a whole limits the negotiating capacity for the US Navy and promotes suboptimal contracts that continuously produce major cost and production time overruns. Several incentives and contracting strategies are explored to better incentivize, through formal and informal means, the best value for the Navy in the production of large ships. These methods mainly include a sharper focus within the contracts on the scale and alignment of incentives. Some incentives in use in current contracts were found to be counterproductive to the goals of reduced cost, timeliness and quality because of the disproportionate scaling of one goal's incentive over the others. Once the shareline incentive is lost as in the LPD 17 program, there is much less of a need for the shipbuilder to control costs. Also, a redirection of resources spent on smaller incentives in order to increase larger incentives such as larger order quantitites is suggested. These improvements, however, might only lead to a marginal effect in contract efficiency at best. In order to produce a larger effect, the competitive base in the shipbuilding industry must be increased. This increase in the competitive base is possible through a large capital investment into an existing tier 2 shipyard in order to increase its production capabilities to a tier 1 shipyard.
CIVINS (Civilian Institutions) Thesis document
Showing items related by title, author, creator and subject.
Nonproliferation vs. industrial competitiveness: U.S. export controls and the dual-use machine tool industry Bretzin, Randall H. (Monterey, California. Naval Postgraduate School, 1995-06);This thesis examines the tradeoff between nonproliferation objectives and commercial interests regarding controls on American exports of dual-use technologies. It also examines the tension between both unilateral and ...
Capitation base resource allocation: does it provide the necessary financial incentives for the MTF to achieve technical and allocative efficiency? Chavez, Anthony S. (Monterey, California. Naval Postgraduate School, 1995-12);This thesis analyzed the effect capitation based resourcing has on the incentives for the commander of military treatment facilities (MTFs). Specifically, what incentives do MTF Commanders have to increase effectiveness ...
Variability of valuation of non-monetary incentives motivating and implementing the Combinatorial Retention Auction Mechanism Ellis, Jason Blake (Monterey, California: Naval Postgraduate School, 2009-03);This thesis explores the concept of preference variability relative to non-monetary and monetary incentives in the Combinatorial Retention Auction Mechanism (CRAM). CRAM offers a mix of monetary and non-monetary incentives ...