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ABSTRACT (Maximum 2W words)The purpose of this study was to assess the potential cost savings of using a coproduction versus a competition acquisition strategy for the U.S. Army's Light Helicopter (LH) program (formerly LHX). The Army's Baseline Cost Estimate (BCE) is examined and reproduced before adjustments are made based on changes in the methodology used by the Army. The analysis of costs covers all production costs and considers the time value of money, the production schedule, and sustainment costs. Based on their analysis, the authors conclude that coproduction would be the least-cost acquisition strategy. The objective of the task was to assess the potential cost savings to the U.S. government that would resuit from coproduction of the Light Helicopter (LH) versus use of two full-facility production lines. The genesis of this assessment was the LH Milestone I Acquisition Decision Memorandum of 17 June 1988 from the Deputy Secretary of Defense to the Secretary of the Army, which conveyed the Defense Acquisition Board's decision to authorize the restructured LH program to proceed into the demonstration/validation phase. In that memorandum, the Army was directed to review the acquisition strategy to assess potential cost savings from coproduction versus two competing full...
