This paper describes how the US Navy structures fixed-price and fixed-price, incentive-fee shipbuilding contracts and how labor- and material- cost indexes can mitigate shipbuilder risk in either type of contract. The Navy frequently uses the Steel Vessel material-cost index, a Bureau of Labor Statistics-derived cost index based on the mix of materials in a typical commercial cargo ship constructed in the 1950s. The Steel Vessel Index has excessive weighting on iron and steel, thereby providing shipbuilders with a mismatch between their actual and the Index-assumed material-cost structure. We recommend the Navy use a material-cost index with more up-to-date weightings.
Using the Steel Vessel Material-Cost Index to Mitigate Shipbuilder Risk
2008
37 pages
Report
Keine Angabe
Englisch
Management Practice , Business & Economics , Marine Engineering , Logistics Military Facilities & Supplies , Shipbuilding , Contract administration , Price index , Risk management , Profits , Cost overruns , Contracts , Symposia , Briefing charts , Cost risks , Cost indexes , Shipbuilding contracts , Fpif(Fixed-price incentive-fee) contracts
Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk
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|Online Contents | 2010
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|Shipbuilder and seaman training
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