Current Cost Analysis Practice in the Navy - Estimating the Effects of Competition

An evaluation of current Navy practices for assessing the cost effects of production competition in programs using dual production sources is presented. Weapon system cost analysis practices are presented first as a baseline, followed by discussion of particular methods used when two production sources are expected. The scope of the evaluation was limited to cost analysis practices at the headquarters level in the three hardware systems commands and at what is now the Naval Center for Cost Analysis.