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...
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| Main Author: | |
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| Other Authors: | , , |
| Format: | Electronic Book Chapter |
| Language: | English |
| Published: |
RAND Corporation
2008
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| Subjects: | |
| Online Access: | DOAB: download the publication DOAB: description of the publication |
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| 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 A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile.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. |
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| ISBN: | TR520NAVY 9780833046031 9780833042293 |
| Access: | Open Access |