Enhancing Cost Realism through Risk-Driven Contracting: Designing Incentive Fees based on Probabilistic Cost Estimates

Language: English

Published by Creative Media Partners, LLC Nov 2012, 2012

1288294379 / 9781288294374

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Neuware - A risk-driven contract structure is proposed to enhance the cost realism of competitive proposals for the Engineering and Manufacturing Development (EMD) phase of the acquisition lifecycle. An economic theory framework is employed to discuss how the cost-plus contracts typically used during this phase have inadvertently motivated contractors to provide optimistic cost estimates in an attempt to win competitive source selections. By directly mapping probabilistic cost estimates to profit distributions, risk-driven contracts offer a structured method to impose more cost risk sharing on contractors during EMD. Holding contractors accountable for their cost estimates and cost performance should enhance the realism of their cost proposals and ultimately reduce the cost growth that continues to plague the defense acquisition system.

Seller Inventory # 9781288294374

Title
Enhancing Cost Realism through Risk-Driven Contracting: Designing Incentive Fees based on Probabilistic Cost Estimates
Author
Sean Dorey
Publisher
Creative Media Partners, LLC Nov 2012
Publication year
2012
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
1288294379
ISBN 13
9781288294374
Item weight
141 grams
Dimensions
246x189x4 mm

AHA-BUCH GmbH

Einbeck, Germany

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AbeBooks seller since August 14, 2006

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