Application of Reliability Improvement Warranty (RIW) to DoD Procurements PDF Download

Author: Dennis Jean Allen
Publisher:
ISBN:
Category : Management
Languages : en
Pages : 0

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Book Description
The existence of a goal conflict in the buyer/seller relationship is inherent under a profit motivated system where conventional procurement techniques are used. The buyer seeks maximum performance at minimum life cycle cost and the seller seeks to maximize profit which may translate to minimizing reliability improvement costs. Experience of military and commercial procurement activities with the use of Reliability Improvement Warranties (RIW's) has led to the conclusion that the RIW may be a valuable tool in bringing buyer/seller goals into agreement by transferring the management of costs to the seller. Background material on DoD and commercial warranty experience is used to form the framework for an evaluation criteria developed by ARINC Research Corporation to test the applicability of RIW to a particular acquisition.

Author: Arturo Gándara
Publisher: RAND Corporation
ISBN:
Category : History
Languages : en
Pages : 76

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Book Description
Examines the Reliability Improvement Warranty (RIW). Consumer and commercial warranty experience does not alone justify optimistic expectations for RIWs; the effect of RIWs in completed Department of Defense (DOD) programs is inconclusive; and as a result of inadequate research design the expectation of drawing meaningful conclusions from the ongoing RIW experiment may be over-optimistic. Examination of completed RIW programs, however, suggests the importance of (1) modification after operational use or testing, (2) schedule flexibility, (3) contractor involvement in initial overhaul and repair, and (4) avoidance of RIWs in programs subject to extreme quantity or utilization uncertainty. The design of the DOD's ongoing RIW experiment can be improved by (1) reducing the variation in contractual terms, (2) developing better controlled conditions, and (3) establishing defined limits for the experiment. In addition, the DOD must recognize the multiple objectives of the RIW and establish priority among them to facilitate evaluation.

Author: Bobby G. Christian
Publisher:
ISBN:
Category :
Languages : en
Pages : 107

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Book Description
The reliability improvement warranty (RIW) is a relatively new procurement concept which may potentially make a significant contribution to the Department of Defense (DOD) goal of lowering the life cycle costs of weapons systems. A major factor delaying full scale application of the RIW concept is uncertainty concerning the impact that widespread usage would have on competition for DOD procurements. This study was limited to a comparison of the six existing military RIW contracts for avionics units with a sample of contracts for similar items without the RIW provisions, to determine if any difference in the degree of competition existed. The variables used to measure the degree of competition were the number of contractors vying for the contract award and the variability of the proposed prices. The results of the study indicated that the degree of competition for contracts containing RIW clauses did not differ significantly from that of the contracts without RIW clauses. (Author).

Author: Arturo Gandara
Publisher:
ISBN:
Category :
Languages : en
Pages : 67

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Book Description
Consumer and commercial warranty experience does not alone justify optimistic expectations for RIWs; the effect of RIWs in completed DoD programs is inconclusive; and as a result of inadequate research design the expectation of drawing meaningful conclusions from the ongoing RIW experiment may be over-optimistic. Examination of completed RIW programs, however, suggests the importance of (1) modification after operational use or testing, (2) schedule flexibility, (3) contractor involvement in initial overhaul and repair, (4) and avoidance of RIWs in programs subject to extreme quantity or utilization uncertainty. The design of the DoD's ongoing RIW experiment can be improved by (1) reducing the variation in contractual terms, (2) developing better controlled conditions, and (3) establishing defined limits for the experiment. In addition, the DoD must recognize the multiple objectives of the RIW and establish priority among them to facilitate evaluation.

Author: Bobby G. Christian (CAPT, USAF.)
Publisher:
ISBN:
Category : Reliability (Engineering)
Languages : en
Pages :

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Book Description

Author: Arturo Gándara
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 16

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Book Description
The Department of Defense (DOD) has only had three completed warranty programs, and data on current programs will not be complete until the early 1980s. This paper explores the reliability improvement warranty (RIW) concept by evaluating commercial analogs, past DOD warranty experience, and the current tri-service RIW trial. Examination of the completed programs does not show conclusive evidence that warranties were a major factor in observed improvement, but certain observations regarding reliability were apparent: (1) Modification after testing is needed to take advantage of field experience and can be promoted without a warranty. (2) Scheduling should be flexible to allow incorporation of test data in subsequent development and production. (3) The contractor should be involved in initial overhaul and repair. (4) RIWs should not be applied to programs subject to extreme quantity or utilization uncertainty. The authors point out that current RIW trials have terms and penalties that vary widely and diminish the likelihood that they will yield conclusive evidence on the value of warranties.

Author: Oscar Markowitz
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 137

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Book Description
RIW (Reliability Improvement Warranty) is considered by DOD (Department of Defense) as being in a trial phase during which the philosophies, techniques and applications could be wrung out. The Abex RIW contract, about which this report deals, innovated features of no exclusions, support, as well as early timing in the sequence of the life of an item. Thus, the report on this Abex RIW contract is meaningful in terms of evaluating RIW results against other most likely results should an otherwise normal support mode have been selected rather than RIW. The pre-contract history is provided as well as the main conditions and terms of the RIW contract itself. Each area of interest (Program, Administration, Engineering, Logistics and Economics) is reviewed and quantified from data developed for the RIW contract purposes as well as data from other Navy sources obtained for evaluation purposes. Throughout the report, results obtained within the Abex contract are compared against non-RIW alternatives as well as other experiences obtained with other equivalent engine driven hydraulic pumps supported without benefits of RIW. Conclusions to date can be made that the RIW goals anticipated were more than met and the RIW contract has, in fact, resulted in a most cost effective support alternative available to the Navy. Additionally, the RIW alternative has provided superlative support to the fleet within a Navy investment considerably less than other comparative units used in other front line Navy aircraft. The report provides considerable supportative detail and analysis to back up the above conclusions. (Author).

Author: Payton E Dunn (Jr)
Publisher:
ISBN:
Category :
Languages : en
Pages : 118

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Book Description
As DOD's percentage of the budget continues to decline, there is an increasing need to get more for the defense dollar. One way to achieve this objective is through the use of Reliability Improvement Warranties (RIW). The RIW calls for a total repair contract based on a pre-determined Mean Time Between Failure (MTBF). The contractor to whom the contract is let can realize increased profits by increasing the MTBF of the item. He does this by initiating 'No Cost' Engineering Change Proposals which will increase item performance and reliability. The study was designed to survey the existing population of items covered by a RIW to determine what characteristics they had in common.

Author: Mark C. Jacobson
Publisher:
ISBN:
Category :
Languages : en
Pages : 101

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Book Description
The reliability improvement warranty is a relatively new acquisition technique in government contracting. To encourage effective use of the technique, HQ USAF Directorate of Procurement Policy (LGP) published the pamphlet entitled Interim Guidelines Reliability Improvement Warranty (RIW) in July, 1974. This pamphlet provided guidance in the areas of application criteria, funding, provisions, determination of cost effectiveness, and general implementation and administrative information. Since the guidelines had not been revised since publication, the researchers' objectives were to determine if the guidelines were adequate and to obtain recommendations for improving those guidelines, if necessary. To meet those objectives, 24 individuals knowledgeable in the area of RIW were interviewed. Their perceptions were gathered through ten scaled response questions that addressed main areas within the guidelines. The distribution of responses were tested via the Kolmogorov-Smirnov two sample test to determine the adequacy of the area. Interviewees also recommended changes to correct perceived problem areas via open ended response questions. The researchers concluded the guidelines were inadequate in a number of areas, e.g., evaluation of candidates, example clauses, administrative concerns and cost-benefit analysis among others. Suggestions for increased detail, more examples, deeper rationale and organization into a regulation were made. (Author).

Author: Allan Edward Schmidt
Publisher:
ISBN:
Category :
Languages : en
Pages : 47

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Book Description
This report tracks DOD involvement in and development of a category of warranty which seeks good product reliability and also reliability growth or growth potential (called RIW) that has evolved over a number of years from DOD and industry experiences. The report provides a historical trail leading to RIW as used in DOD with primary emphasis on the Air Force's recent experience. Some commercial airlines' warranty concepts are discussed; then government and industry views are presented. The report details CODSIA involvement and role in RIW structuring and usage during the current DOD trial test of the concept-- started in 1973. In 1974 it was further definitized and the term RIW and its concepts were presented for the trial use project. However, no specific trial/test parameters have been established. Currently the individual services may apply RIW as they determine, within overall DOD guidelines. Achievement or consummation of the assessment of RIW's merit, benefits, hazards and policies is the task that DOD is at grips with now. The author suggests alternatives to the current DOD RIW test approach, and recommends that: (1) the test be formalized for a period of 1 more year or less; (2) the current RIW programs be evaluated in depth and new programs be added very selectively (or not at all); and (3) DOD, CODSIA and ARINC coordinate or compromise on implementation details and contractual provisions based on the findings of the 1-year test (if RIW is approved as a concept for continued use).