Costs of procurement deferral with interim contractor support: Hi-Valu airframe spares (U).

by Wilbur Steger

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A supplement to RM-2085, Savings from Procurement Deferral with Interim Contractor Support: The Case of Hi-Valu Airframe Spares, which summarizes RAND's work to date on the deferred spares procurement concept and analyzes the net worth of procurement deferral by quantifying its gains and costs. The present research memorandum examines not only the cost estimates of spares procurement deferral, but also the possibility of reducing the monetary costs of deferred procurement. This investigation may aid the Air Force in estimating the kinds and magnitude of the costs incurred in any deferred procurement program and may suggest a program for implementing the "buffer stock policy" implied by the deferred procurement system.

This report is part of the RAND Corporation Research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

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