| Summary: | This thesis examines the previous acquisition strategy of a typical aircraft survivability equipment (ASE) procurement through an economic analysis. It also explores new philosophies to traditional acquisition methods and combines the economic lessons learned to suggest improvements to the current ASE procurement strategy. The AN/APR-39A(V)l Radar System Detecting Set (RSDS) was analyzed because it represented, on average, the common approach to acquiring ASE in prior years. After analyzing this system's cost data by using the Learning Rate (LR) Theory, and comparing it to the Should Cost Analysis Team's (SCAT) cost estimation, it appeared that actual costs did not follow the agreed upon 90% LR. A closer examination concluded that a 90% LR was used, but price discrepancies to the LR estimations were caused by an innovative payment scheme. New approaches to systems acquisition, along with the appropriate use of the LR and payment methods can enhance the acquisition process. This thesis recommends selected new procurement philosophies for an improved ASE strategy.
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