Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk. Technical Report
The more accurately a cost index captures a shipbuilder?s risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders? control. A longtime material-cost index in Navy shipbuilding is the steel-vessel index, bu...
Saved in:
Main Authors | , , , |
---|---|
Format | eBook |
Language | English |
Published |
Santa Monica
RAND Corporation, The
2008
|
Online Access | Get full text |
Cover
Loading…
Summary: | The more accurately a cost index captures a shipbuilder?s risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders? control. A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile. The authors urge the Navy to develop a modern-vessel index that more appropriately represents the materials used today. |
---|