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Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk

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...

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Main Authors: Keating, Edward G., Murphy, Robert, Schank, John F., Birkler, John
Formato: Online
Idioma:inglês
Publicado em: RAND Corporation 2023
Assuntos:
Political Science
Technology
thema EDItEUR::J Society and Social Sciences::JP Politics and government::JPV Political control and freedoms
thema EDItEUR::T Technology, Engineering, Agriculture, Industrial processes::TT Other technologies and applied sciences::TTM Military engineering
Acesso em linha:ONIX_20231005_9780833046031_540
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Resumo: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 A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile.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.

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