Survey of DoD profit policy and further analysis of the estimation theory

• Main Author: Boll, Gregory L.
• Other Authors: Gregory G. Hildebrandt
• Language: en_US
• Published: Monterey, California: Naval Postgraduate School 2012
• Online Access: http://hdl.handle.net/10945/13409

The current weighted guidelines profit policy within the Department of Defense (DOD) has been the subject of numerous studies over the past four decades to determine its effectiveness within DoD. Many of the studies offer differing results as to the effectiveness of this policy and the measurements used for analysis. The central objective of this study was to conduct a survey of the weighted guidelines profit policy and use event analysis to estimate the size of prizes awarded to defense contractors. To address this issue, a survey of the weighted guidelines profit policy was completed with consideration of an economic approach to the weighted guidelines policy. Analysis of four missile defense systems was conducted to measure the size of prizes awarded for missile contract awards. Findings of the study are limited. The present profit policy within DoD can be improved upon with an economic approach to the weighted guidelines profit policy. However, conclusive findings were not observed for analysis of economic profit within the defense missile industry. This was due to the limited number of contests analyzed in this study.