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Contract Delays: The Impact Of Department Of Defense (Dod) Contractors' Wealth, Jacqueline M. Leskowich
Contract Delays: The Impact Of Department Of Defense (Dod) Contractors' Wealth, Jacqueline M. Leskowich
Theses and Dissertations
The monetary incentives used to motivate DoD contractors’ schedule performance on Acquisition Category One programs afford them the opportunity as a whole to earn billions of dollars in addition to their contract award. These incentives are paid 85-90% of the time regardless of schedule performance. While these contractors are paid to avoid delays, there is an indication the delay increases the contractor’s stock value. This research tested the theory that contract delays significantly impact the company’s stock returns. The results found both positive and negative reactions to a firm’s value. Delays caused by budget cuts tend to have a negative …
Cost Growth In Weapons Systems: Re-Examining Rubber Baselines And Ecomonic Factors, Philip E. Ruter Ii
Cost Growth In Weapons Systems: Re-Examining Rubber Baselines And Ecomonic Factors, Philip E. Ruter Ii
Theses and Dissertations
This paper will evaluate cost overruns from a microeconomic perspective to determine their root causes. The specific variables that will be evaluated are: contract budget fluctuations, contract length, inflation, procurement budget fluctuation, research and development budget fluctuation, the technology readiness of the commodity, and industry concentration. These variables will be evaluated twice. The first evaluation will consist of a binary choice model to determine whether or not the dependent variables influence the likelihood of a cost overrun. The specific form of the evaluation will take the form of a probit regression in which an independent variable value of zero indicates …