Analysis of the Effectiveness of the Preproduction Evaluation Contract in Preventing Cost Overruns.

摘要

This research report examines the cost overrun figures for both PPE and conventional contracts. It compares the cost of the two types of contracts and statistical methods are employed to measure the cost overrun differences between them. The shortcomings of conventional contracting methods are reviewed and the advantages and disadvantages of the PPE concept are discussed. The data revealed significant differences between the two types of contracts examined and recommendations are made as to when the more complex PPE concept is justified. (Author)