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PSAD-78-79 1 (1978-03-20)

handle is hein.gao/gaobaaxso0001 and id is 1 raw text is: DQCUABIT RESURI 06782 - [B22672941 [The Department of Defense s Application of the Design-tc-Cost Concept]. PSAD-78-79; B-163058. Harcb 20, 1,378. 7 pp. Report to Secretary, Department of Defeave; by Richard V. Gutmann, Director, Procurement axd Systems Acquisition Div. Issue Area: Federal Procurement of Goods and Services (1900). Contact: Procureiment and System, s Acluisition Div. Budget Function: Nat.obal Derzse: Department of Defense - Procurement 8 Contracts (058). orqanization Concerned: Department of Dufense; Department of the Air Force; DepArtsent of the Aral; Department of the eavy. Congressiohal Reltivance: House Committee on Armed Serr'ices; Senate Committee on Armed Services. Authority: DOD Dirgcive 5000,l. The Department of Defena fs (DOD$S) USO of the design-to-cost cuncopt as applied to the fcllowing programs was revlewevd: A-10-Closi Air Support 1ircraft (Air Zorce); ATS--Advanced ledius Short Takeoff 6nd Lasding Transport (Air Force): UT'.AS--Utility Tactical Traosport Aircraft System (Army) ; Cu-.. MOD--acdernization f. C''aock Mediua Lift Helicopter ?l.eet (Army); and FFG---fuided Vissile frigate (Navy). Although thests programs lent themselves to successful application of the coxcept, the concept as defined by DCD wa3 nct closely followed. Departures in implementing the concept included, not establishing design-tc-ccst targets during concept formulation when the greatest flexibility existed, overemphasis on controllinq the sore imediate acquisition costs rather than life cycle costs, and failure to develop the ccst data base needed to establish cost-performance estimating relationships. Special study teams should be organized to assess implementation of the concept in existing programs and to review pians for its implementation in new programs. The assessseats and reviews should focus attention on discrepancies between the concert and its implementation, operate as a ccrporate memory of lessons learned, and provide program maaagers with the expexience needed to better adapt design-to-cost to their individual programs. (Author/HTV)