Airborne Electronic Equipment Lifetime Guarantee.

The objective of this study was to determine the feasibility of applying various types of lifetime guarantee plans to the procurement of airborne avionics equipment. The practicality of such plans and guarantee ramifications throughout the entire equipment lifetime, from development through acquisition and operational use, was evaluated. Guarantee plan cost models and related procedures were developed for each of the three types of guarantee plans. Worksheet type procedures were established that permit the cost models to be used to derive the savings (or losses) to the Air Force of a given guarantee plan in a specific procurement situation. The cost effectiveness of the full life, maximum failure rate, and failure free guarantee plans were examined for each of the representative avionics units previously selected as baseline equipments. The effect of changes in key variables, such as MTBF, repair times, repair costs, bids, and incentive payments, was also evaluated. (Author)