Analysis of Pricing Models in the Defense Industry to Support Cost Projection
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This study aims to develop a mathematical model to describe the interactions between defense contractors and the government, in order to estimate cost and schedule for developing a technologically advanced weapon system. The research goal is twofold: (1) Explain why the development of a new weapon system is often subject to cost overrun and schedule delay; and (2) Identify market mechanisms to improve the efficiency of the bidding and contracting process in order to better manage risk.
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