• Title/Summary/Keyword: Military contract

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Study on Cost-shifting in Cost Reimbursement type of Defense Contracts (개산형 방산계약에서의 원가이전에 관한 실증연구)

  • Lee, Jeong-Dong;Lee, Chun-Ju;Jung, Kyeong-In
    • Journal of the military operations research society of Korea
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    • v.31 no.2
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    • pp.1-12
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    • 2005
  • Defense firms' excess profitability by shifting common overhead costs from non-defense sector to defense sector in the award of cost reimbursement type of defense contracts is a widespread conclusion in prior researches. In this paper, we reviewed cost-shifting incentives in defense-contracting firms and extended the analysis of McGowan and Vendrzyk(2002) by applying modified model to Korea Defense Contracts. We formulated six hypotheses to test the relation of cost-shifting and excess profitability regarding market openness, auditing system, ranking in defense contracts, and firm types(sole defense contractors, sole non-defense contractors, and defense and non-defense mixed contractors). But, we could not find any evidence that defense firms shifted costs from non-defense sector to defense sector for the period 1997-2002. The results suggest that the excess profitability of Korea defense firms may not be from the cost-shifting but from other reasons.

A Study on the Development of Design Information CITIS Prototype (설계정보 CITIS 프로토타입 구현에 관한 연구)

  • 박정선;김성희
    • The Journal of Information Technology and Database
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    • v.6 no.1
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    • pp.47-57
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    • 1999
  • CITIS(Contractor Integrated Technical Information Service) is a service standard which specifies guidelines which are required for the fulfillment of a contract between a purchaser and a supplier. It was initiated as a military standard and is now becoming a commercial standard. In this paper, we propose how the guidelines, which were usually developed by Client/Server methods in previous works, can be implemented in WWW environments, and show a prototype which can be used for the confirmation of CAD drawings between contractors(purchaser and provider). We have a hope our study can provide a small foundation for the building of CITIS references.

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An Improvement Plan of Contract Price Adjustment through the Problem Analysis of the Current Price Escalation Regulation in Construction Projects (현행 건설공사 물가변동 제도의 문제점 분석을 통한 계약금액조정 개선방안)

  • Park, Yang-Ho;Kown, Beom-Jun;Kim, Yong-Su
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2006.11a
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    • pp.435-439
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    • 2006
  • The purposes of study is to propose a new method contract price adjustment in construction projects. The research method of this study includes a case analysis and questionnaire survey. The results of this study are as follows: 1) For improvement method of contract amount adjustment, enactment for legislation pertaining to computation methods such as military's organization through total unit cost, and price flexibility computation at the point of design modification were presented. 2) Arithmetic formulas for cases in which volume is deleted or modified below the price flexibility exemption amount or in which there is no change to quantity, at the occurrence of design modification resulting from price flexibility, were proposed.

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Curriculum and Characterization Subjects Development for Department of IT convergence Based Army Contract (군계약 IT융복합학과를 위한 특성화 교과목 및 교육과정 개발)

  • Choi, Chul-Jae
    • Journal of the Korea Society of Computer and Information
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    • v.19 no.5
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    • pp.129-137
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    • 2014
  • This study proposed an IT convergence curriculum for educating the Non-Commissioned Officers. This program was produced by the comprehensive reference to the curriculums of military academies and systematic and rational modelling. The key features of the proposed curriculum are to consolidate the following three areas to meet the needs of the NCO, a recipient of the education. First, IT related subjects were posed as a mainstay of the curriculum that is critical for the scientific and information advancement of the forces. Second, the military leadership courses were included in the effective management of the soldiers. Third, military counseling certificate courses were included, a ground breaking trial nationally. In addition to this, we presented a characterized courses that focus on hands-on skills and knowledge for performing the duties of the NCO.

Research on RAM-C-based Cost Estimation Methods for the Supply of Military Depot Maintenance PBL Project (군직 창정비 수리부속 보급 PBL 사업을 위한 RAM-C 기반 비용 예측 방안 연구)

  • Junho Park;Chie Hoon Song
    • Journal of the Korean Society of Industry Convergence
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    • v.26 no.5
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    • pp.855-866
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    • 2023
  • With the rapid advancement and sophistication of defense weapon systems, the government, military, and the defense industry have conducted various innovative attempts to improve the efficiency of post-logistics support(PLS). The Ministry of Defense has mandated RAM-C(Reliability, Availability, and Maintainability-Cost) analysis as a requirement according to revised Total Life Cycle System Management Code of Practice in May 2022. Especially, for the project budget forecast of new PBL(Performance Based Logistics) business contacts, RAM-C is recognized as an obligatory factor. However, relevant entities have not officially provided guidelines or manuals for RAM-C analysis, and each defense contractor conducts RAM-C analysis with different standards and methods to win PBL-related business contract. Hence, this study aims to contribute to the generalization of the analysis procedure by presenting a cost analysis case based on RAM-C for the supply of military depot maintenance PBL project. This study presents formulas and procedures to determine requirements of military depot maintenance PBL project for repair parts supply. Moreover, a sensitivity analysis was conducted to find the optimal cost/utilization ratio. During the process, a correlation was found between supply delay and total cost of ownership as well as between cost variability and utilization rate. The analysis results are expected to provide an important basis for the conceptualization of the cost analysis for the supply of military depot maintenance PBL project and are capable of proposing the optimal utilization rate in relation to cost.

A study on Mass production stage Tank Battle Management System Environmental Stress Screening test method and application improvement based on Production process data (생산 공정 자료 기반 양산단계 전차 전장관리체계 환경 부하 선별 시험 방법 및 적용 개선에 관한 연구)

  • Kim, Jang-Eun;Shim, Bo-Hyun
    • Journal of Korean Society for Quality Management
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    • v.43 no.3
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    • pp.273-288
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    • 2015
  • Purpose: In this study, we apply environmental stress screening (ESS) to battle management system (BMS) of a tank and use the ESS profile based on production process data, guided by MIL-HDBK-781/344/2164. Methods: To optimize ESS Profile of the BMS of a tank, we estimate ESS model parameters (e.g., defect density, screening strength) using primary production failure reporting and corrective action system (FRACAS) data of military supply contract firm. Results: First, we collect the Primary production FRACAS data of military supply contract firm. Second, we compute curve fitting approach to find patent defect density and latent defect density using FRACAS data. Third, we solve the equation of Defect Density(patent defect density + latent defect density)($D_{IN}$) and Screening Strength(SS) Using second step data. As a result of analysis according to the order, we calculate $D_{IN}$(Temperature stress case : 74.02, Vibration stress : 10.252) and : SS(Temperature stress case : 0.4632, Vibration stress : 0.4142) and confirm the Condition II-D based on MIL-HDBK-344. According to Condition II-D, it is necessary to modify existing ESS profile through decreasing the $D_{IN}$ and increasing the SS. Conclusion: Identification of defect causes through ESS approach reduce defect densities for production. It provides feedback to a lessons-learned data base to avoid similar problems on next generation tank BMS.

Legal Review of Product Liability of a Defective Aircraft (군용항공기와 결합방지를 위한 개선방안 및 법적 책임관계 연구)

  • Cho, Young-Ki;Chung, Wook
    • The Korean Journal of Air & Space Law and Policy
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    • v.20 no.2
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    • pp.59-158
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    • 2005
  • When a military aircraft suffers damages due to the defects in its design, manufacturing or notification, all of which are generally understood as products liability defects, the obvious compensation is sought as it would in other consumer good case. However, there exist clear yet unappreciated difference between general consumer goods and military aircraft, as far as products liability law is concerned - some sort of recovery should be obtained even when there exist only defects, not damages, to the aircraft because of the implication of defective parts is much grave than what can be expected in a consumer goods case. While certain anticipatory measures do exist in manual or at negotiation stages for the safety of military aircraft, such measures are ineffective, if not ambiguous, in recovery effort in the post-accident stage In another word, the standardized military procurement contract manuals and boilerplate forms do not appreciate the unique and dangerous military nature of military aircraft. There are many unique legal issues which can arise when trying to prevent defective aircraft or parts, or to recover compensations for accident due to such defects. At two-level, the government should establish legal system (or countermeasures if you'd like) for purchasing safer military aircraft. First, one should be able to work with legal ground and policy that allows selecting and purchasing safer goods - the purpose of such contract is not litigious, but rather in acquiring what are most reliable. Second, in case the defects do arise and lead to damages, solid legal principles and instructions should be established for effectively pursuing appropriate company, (usually a aerospace industry giant with much experience) for products liability - the purpose of such pursuit is inevitable for a public official, since he or she is no private business man with much flexibilities, even to the point of waiving such compensatory right for future business purposes. This article tries to identify problems in methods of procuring military aircraft or parts - after reviewing on how the military can improve on legal and policy grounds for procuring what will be the focus of future military strength, it will offer some of the ways to effectively handling and resolving a liability issues.

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Life Cycle Costing: Maintenance and Repair Costs of Hospital Facilities Using Monte Carlo Simulation

  • Kim, Tae-Hui;Choi, Jong-Soo;Park, Young Jun;Son, Kiyoung
    • Journal of the Korea Institute of Building Construction
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    • v.13 no.6
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    • pp.541-548
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    • 2013
  • During the administration of a construction project, various types of participants are engaged in the project. From the design phase to the maintenance phase, these participants may confront many risks. To avoid these risks, participants should utilize an insurance company or a bond company. The types of risks and liability that a construction manager may face are listed in the construction law or contract. But there are some arguments related to risk transferring and the content of risks. For this reason, construction managers must carefully consider any possible risks in the contract and the construction law. Therefore, for construction managers to deal with risks appropriately, the introduction of a legal requirement to carry professional liability insurance, a defined compensation range for damages, a method of guarantee in the event of defects, a defined compensation claim period for damage, and a method of damage claim were suggested in this study.

A Curriculum Design of Computer Application Department for Non-Commissioned Officers (직업군인을 위한 컴퓨터응용학과 교과과정 설계)

  • Choi, Chul-Jae;Joo, Seok-Hum
    • The Journal of the Korea institute of electronic communication sciences
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    • v.9 no.5
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    • pp.583-588
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    • 2014
  • The purpose of this paper is to develop curriculum for the Department of Computer Application Based Army Contracts. Because the Army contract department is a retraining undergraduate degree program targeting noncommissioned officers in service, its curriculum has no choice but to differ from those of other departments. The curriculum of the Department of Computer Application focuses on the reeducation of noncommissioned officers in service and consumers of education. In addition to the subjects related to the scientific and informational movement of the military, the subjects needed to qualify for the second-degree military counsellor certificate are reflected in the curriculum, which is a first for regular universities. The appropriate curriculum of the Department of Computer Application will be proposed including subjects for noncommissioned officers to cultivate leadership skills for managing subordinates and various subjects road map of department specializations will be also developed.

A Pilot Study on the Present State and Transformation of Construction Management Actors of USFK's EC Projects (주한 미군 EC 프로젝트의 현황과 시공관리 주체의 변화에 대한 기초연구)

  • Kim, Duk-Su
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.3 s.31
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    • pp.65-75
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    • 2006
  • Emerging trends regarding USFK(United States Forces, Korea)'s EC(Engineering/Construction) market include: (1) introduction of MATOC(Multiple Award Task Order Contract); (2) increase of DB(Design-Build) contract; and (3) encroachment of large US-origin private EC firms upon Korea. This study analyzes the change of USFK's EC market with focus on the change of construction management actors for USFK's EC projects. Specifically, USFK's EC projects have been managed by FED(Far East District). Recently, however, the large US private EC companies substitute the role previously taken by FED. This phenomenon is accelerated by the business chances in Korea due to LPP(Land Partnership Plan) and intentions of US Government to save military construction costs by means of utilizing US private EC companies. The large US EC firms entering into Korea are business opportunities as well as challenges to Korean EC firms, which are contracting USFK's EC projects. This study concludes that, through teaming joint venture with the large US EC firms, the market changes can be opportunities to acquire foreign market information and learn advanced construction management skill from them.