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9780833046031

Using the Steel-vessel Material-cost Index to Mitigate Shipbuilder Risk

by ; ; ;
  • ISBN13:

    9780833046031

  • ISBN10:

    0833046039

  • Copyright: 2008-03-14
  • Publisher: Rand Corp
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Summary

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 A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile.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

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