posted on Aug, 10 2014 @ 09:13 AM
I owned a tool and die company in California, about 30% of our work was for DoD. We manufactured mainly components for the Navy and Air Force, balance
for Army. All if it went through DCMA, the Military contracting management system.
As an example, manufacturing itself may take 50 hour, paperwork required when shipping the part another 30-40 hours. I must pay someone to complete
the paperwork, and insure its properly formatted or the part would be rejected. We also had to include our own inspection reports, another 15-20
hours. (which was radically different from military inspecting parts themselves until the mid 80's). This is also the reason i think many military
components fail, the manufacturer is inspecting their own parts these last few decades. I think in a full scale war the US military will have massive
component failure across the board when systems are truly tested in full theater warfare. so far we have been lucky to have only small wars like Iraq.
So a part that cost the Military 3,000.00 in manufacturing costs, has another 2,000 in documentation and another 1,500 in inspection costs. And then
there is packaging, which can cost 10-20% of the manufacturing or more, depending on the specifications.
So the cost of a component or system, is far more than than the part itself, it is sometimes exceeded by the documentation and inspection and
packaging requirements by Military procurement system.