LEADER 03425oam 2200517zu 450 001 9910220120903321 005 20220902160248.0 010 $a0-8330-8339-2 035 $a(CKB)3360000000476931 035 $a(SSID)ssj0001179577 035 $a(PQKBManifestationID)12508457 035 $a(PQKBTitleCode)TC0001179577 035 $a(PQKBWorkID)11182818 035 $a(PQKB)11146360 035 $a(oapen)doab115207 035 $a(EXLCZ)993360000000476931 100 $a20160829d2013 uh 0 101 0 $aeng 135 $aurmn|---annan 181 $ctxt 182 $cc 183 $acr 200 10$aNew approaches to defense inflation and discounting /$fKathryn Connor [et al.] 210 $cRAND Corporation$d2013 210 31$aSanta Monica, CA :$cRand ;$d2013 215 $a1 online resource (xix, 42 pages) $cillustrations 300 $aBibliographic Level Mode of Issuance: Monograph 311 08$a0-8330-8133-0 327 $aIntroduction Cost Inflation of Ground-Vehicle Parts The Value of Discounting New Approaches to Inflation and Discounting Appendix: Inflation Estimates over Time 330 $aInflation indices and discount rates are necessary tools in the Department of Defense's acquisition process, as the final selection of a system is partially based on potential increases in sustainment costs (inflation) and the present value of future costs (discounting). Inflation indices built for DoD use very broad categories that include operations and maintenance (O & M) as well as manpower, procurement, and research and development. This study addresses the question of how well current inflation indices and discount rates are serving DoD weaponsystem program management. It investigates inflation rates for parts for the Abrams tank and the Bradley armored personnel carrier and shows that the two weapon systems, while both ground systems, experience inflation differently. Although government decisionmaking can benefit from discounting (taking into account the time value of money), choices made using discounted cash flows are not always the least expensive for DoD. Its O & M estimating strategies should be reviewed to reflect changing repair and other costs, since a range of reasonable courses of action exists for many DoD investment decisions. Recommendations for the Office of Cost Assessment and Program Evaluation to consider when evaluating the inflation and discounting policies that impact the long-term affordability of DoD programs include (1) revisiting O & M costs annually with a 5-year moving-average inflation, to reflect changing repair and other costs; (2) highlighting the role of supply chain surcharges in parts costs in cost estimates used to inform program financial analysis; (3) expanding analysis of investments to ensure consideration of least-cost outcomes. 606 $aMilitary engineering$2bicssc 606 $aMilitary history$2bicssc 607 $aUnited States$xArmed Forces$xWeapons systems$xCosts 610 $aHistory 610 $aTechnology 615 7$aMilitary engineering 615 7$aMilitary history 676 $a355.6/212 700 $aConnor$b Kathryn$01241493 702 $aDryden$b James 712 02$aNational Defense Research Institute (U.S.) 801 0$bPQKB 906 $aBOOK 912 $a9910220120903321 996 $aNew approaches to defense inflation and discounting$92880004 997 $aUNINA