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Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk (Technical Report. (Rand Corporation), Tr-520-Navy)

by , , , (RAND Corporation)

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The more accurately a cost index captures a shipbuilder1s risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders1 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 A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile.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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Additional Info

  • Text-to-Speech: Disabled
  • Lending: Disabled
  • Print Length: 30 Pages
  • File Size: 451 KB

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