Tracey D. Kop

Date of Award

9-1994

Document Type

Thesis

Degree Name

Master of Science

First Advisor

Carl R. Templin, PhD

Second Advisor

Curtis Britt, PhD

Abstract

Defective pricing occurs when contractors fail to disclose current, accurate, and complete cost or pricing data in their proposals. Failure to submit valid data entitles the government to a refund in the amount of overpayment. With the current backlog of overage defective pricing cases and the continuing decline in sustention rates, a better understanding of the factors affecting timely and successful recoupment of defective pricing funds is needed. This research identifies factors which significantly affect sustention rates and disposition times and presents models to predict both rates and times. Factors were identified through a literature review and interviews with defective pricing experts. Analysis of variance ANOVA was used to determine the statistical significance of the identified factors. ANOVA results indicated that the following factors have the strongest impact on both rates and times alleged defect amount, number of issues, legal complexity, method of disposition, identity of prime contractor, product center, and interest. The models developed explain 73.4 and 48.5 of the variation in sustention rates and disposition times, respectively. Recommendations for improving sustention rates and disposition times based on the research findings are also included.

AFIT Designator

AFIT-GCM-LAS-94S-5

DTIC Accession Number

ADA285039

Comments

Co-authored thesis.

The authors' Vita pages are omitted.

Presented to the Faculty of the School of Logistics and Acquisition Management of the Air Force Institute of Technology.

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