Accession Number : AD0739470

Title :   The Application of Availability to Linear Indifference Contracting.

Descriptive Note : Research rept.,

Corporate Author : ARMY MATERIEL COMMAND TEXARKANA TEX INTERN TRAINING CENTER

Personal Author(s) : Cronogue,Thomas

Report Date : MAY 1971

Pagination or Media Count : 68

Abstract : The paper develops the methods necessary for applying both Maintainability and Reliability considerations to an incentive contracting plan that utilizes the concept of indifference. The resulting contracting scheme is applicable to situations where systems costs exhibit a linear relationship to system availability. The plan is such that the contractor is paid according to the availability demonstrated by the equipment during actual field use. Statistical techniques based on both consumer's risk and producer's risk are used in determining the required number of renewals. A procedure for establishing confidence limits on the purchase price is also derived. Both the cases for known standard deviation and unknown standard deviation are treated. A discussion of some of the factors involved in determining the linear indifference function is also provided. (Author)

Descriptors :   (*GOVERNMENT PROCUREMENT, COST EFFECTIVENESS), (*CONTRACTS, MANAGEMENT PLANNING AND CONTROL), COSTS, STATISTICAL TESTS, DEPARTMENT OF DEFENSE, PROBABILITY DENSITY FUNCTIONS, CONFIDENCE LIMITS, MAINTAINABILITY, RELIABILITY, THESES

Subject Categories : Administration and Management
      Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE