The report describes a study of rail car procurements over the past 15 years to analyze cost growth and to determine whether deletion, reduction or modification of some procurement conditions (design, specifications, warranties, etc.) could be effective in the containment of future rail car costs. It was found that rail car cost has increased at an average annual rate of 9.4% per year and that, if unchecked, the average rail car will cost $2.4 million in 1995. Even with inflation removed, the average annual rate of growth has been over 5% per year. The analysis points to many areas that should be considered for potential cost savings when rail cars are to be purchased. There are many potential savings methods available. The greatest cost savings identified in the study are from the use of negotiated procurements, existing designs, smaller car sizes, and large procurement order sizes. Significant initial cost savings have also been demonstrated from equitable escalation and monetary value clauses, but these add the risk of additional cost later in the contract.
Rail Car Cost Containment Study
1988
111 pages
Report
Keine Angabe
Englisch
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