0003-SRWWarrantyInformation.docx

Warranty Cost Effectiveness Analysis Army Regulations require that any Army acquisition organizations considering the purchase of a warranty must first determine the cost-effectiveness of the warranty (AR 700-139 and AR 11–18). A Cost-Effectiveness (C–E) analysis is required to determine the value of the potential benefits received in comparison with the contract cost of the warranty plus the Army’s cost of administration and execution. A Warranty Cost Effectiveness Analysis estimates and compares the Government costs to maintain and support a hardware system under a “Warranty” (including the costs of the warranty and any one time and recurring costs to setup and manage the warranty program) versus the costs associated with not having the warranty. The No-Warranty alternative can be a repair contract on a time and material (T&M) basis or an Organic repair.

Offerors shall provide supporting documentation and information requested in the following tables:

System Information

System Name: ASSUME: SRW Appliqué

Density: ASSUME: 1,000 radios purchased

Unit Price:

Economic Life of the System (Year): ASSUME 15 years

Annual Operation Tempo (hrs): ASSUME 2920 hours of operation per year WARETIME and 730 hours of operation per year PEACETIME.

System Operational Availability (Ao):

Mean Time Between Failures (MTBF):

False Removal Rate (%):

Discount Rate:

Warranty Cost Factors

Type of Warranty Proposed (Failure Free or Threshold): ASSUME: FAILURE FREE

Warranty Length (months): ASSUME: Minimum of five years

Annual Warranty Cost Per Unit

Fixed Annual Warranty Cost

Warranty Set Up Fixed Cost - Repair Facility Set Up Cost etc.:

Additional Annual Transportation Cost per Unit

Annual Warranty Tracking Database Cost

Washout Rate (%)

Annual False Removal Diagnostic Cost for all systems

Annual Contractor General & Administration (G&A) Cost outside Warranty Costs

Warranty Timeline

Starts after Delivery or after Fielding: ASSUME: After Delivery

Length of Warranty (Months): ASSUME: Five Years

Calculated Effective Warranty Period (months)

Spares Requirement Factors under Warranty

Does the Government Own the Spares During the Warranty Period?: ASSUME: NO.

Warranty Turnaround Time per Event (days):

No Warranty Considerations

Basis for the Repair Costs a.) Time and Materials (T & M) Cost Per Repair or b.) If No Repair Cost, use 65% of Unit Price as Upper Bond or c.) Firm Fixed Price Per Repair

Total Repair Costs if T&M or Fixed Price

Repair Set Up Fixed Cost

Washout Rate (%)

Annual False Removal Diagnostic Cost for all systems

Additional Transportation Cost per Unit per year outside of Organic Transportation System Not Included in Repair Price

General and Admin (G & A) cost not included in above Repair Costs

Spares Requirement Factors

Does the Gov Own the Spares During the Warranty Period?: ASSUME: No.

Repair Turnaround Time per Event (days) WITHOUT Warranty