Providing two or more sources of production doesn’t always lead to higher costs
The second argument usually used against setting up a second source is that the efficiencies of the first source would have to be scaled back […]
intangible assets
Shay Assad, progress payments, pricing scandals, and a re-run of acquisition history
In January 2018, [USD(AT&L) Ellen] Lord called [DPAP Shay] Assad to her office to vent her frustration with the inconsistent performance of major defense firms. […]
AI exposes challenges to cost estimation
Many people have written about how artificial intelligence can improve the business of cost estimating. However, those papers tend to focus on costing out industrial […]
Value based pricing and how the DOD misunderstands cost
TransDigm uses a value based pricing technique. What I mean by that is that the price of the product or service is based on the […]
DIB recommends new appropriation to meet software challenges
The following is a lengthy excerpt from the Defense Innovation Board’s Software Acquisition and Practices (SWAP) appropriations subgroup. I think it is an excellent expression […]
Costs are the negative aspect of a valuation process
I start, then, with fundamentals. The conception of costs in modern economic theory is a conception of displaced alternatives: the cost of obtaining anything is […]