Robert Murphy

John F. Schank

Edward G. Keating

John Birkler

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 A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile.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.

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

Sarah H. Bana

Michael Boito

In recent years, most Cost Adjustment Sheets (CASs) have increased the Navy's Flying Hour Program (FHP) budget. They also have been far more utilized by the F/A-18 program than by program offices for most other types of naval aircraft. RAND assessed the contribution of CASs to the accuracy of FHP budgets and whether CAS usage is correlated with expenditure-per-flying-hour growth, as well as why CASs have been used more by the F/A-18 program.

Edward G. Keating

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