Evaluation of the Effectiveness of the Weighted Guidelines to Induce Contractor's Investment in Cost Reducing Facilites Equipment

摘要

The main objective of this report was to determine the adequacy of the present Weighted Guidelines profit policy for improving the productivity of defense contractors and to assess whether or not the profit policy is providing a stimulus for strengthening the industrial base. The scope of the analysis consisted of the following approach: 1) Reviewed literature of all material which pertained to the Weighted Guidelines profit policy which had been published since 1976; 2) Developed an investment model as the foundation to understanding the process of corporate capital investments; 3) Compared analyses and tests which were presented in Profit '76 and Profit '82. 4) Used Weighted Guidelines profit policy information gained through contacts within the Services and industry; 5) Performed analyses on financial information obtained from various government profit centers.