Boeing claims USAF cost estimates for KC-45 favored EADS

As part of the source selection for any program the Government does an Independent Cost Estimate (ICE) for the various proposals. If it is for an ACAT ID program the OSD Cost Analysis Improvement Group (CAIG) does it, and if it is ACAT IC then the service’s cost people do it. Boeing is claiming that the ICE for their aircraft was flawed and that the USAF deliberately favored the Northrop Grumman proposal. See the story here. Having been involved in the process of generating these estimates I find it hard to believe that the independent cost analysts would deliberately do this. Read more

US weapon system acquisition policy

March 31, 2008 by Dagpotter · Comment
Filed under: Federal Budget Process, Industry Analysis 

When the US government orders a new development program for a weapon system there are a variety of steps that must be done to get to the point of awarding the contract. Congress through law and regulation strictly dictates how a system may be acquired. The process is supposed to be driven by requirements. The users specify the requirements and then the material developer gets a system that meets the requirements at a good price for the government. Read more

BAE may expand Michigan facility

This story is about how BAE Systems possible expanded production of MRAP’s and their submission of a bid for the Joint Light Tactical Vehicle (JLTV) contract may allow them to enlarge their Michigan facility. Right now no production is done there, but the demand for the MRAP or JLTV may lead that to be done at their Sterling Heights facility. While there has been consolidation in the US defense industry since 1990, the demands of the current budgets have made it possible for the companies to invest in physical plant to increase production and repair of key items. Read more