Some Determinants of Contract Prices in Defense Procurement

The results of exploratory research on models and techniques used in estimating the effects of competition as well as several other variables in weapon system production contract prices are reported. The purpose of this effort was to examine the use of pooled cross-section, time-series data in modeling the acquisition program and its environment. The approach is not tied specifically to competitive acquisitions; however, the primary aim of the research was to examine models used to estimate the effects of competition.