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  3. Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk

Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk

Posted By: step778
Date: 26 Jun 2024 14:08:26
Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk

Edward G. Keating, Robert Murphy, John F. Schank, "Using the Steel-Vessel Material-Cost Index to Mitigate Shipbuilder Risk"
English | 2008 | pages: 30 | ISBN: 0833042297 | PDF | 0,2 mb

The more accurately a cost index captures a shipbuilder1s risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders1 control. A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile. The authors urge the Navy to develop a modern-vessel index that more appropriately represents the materials used today.

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