SAWE Report - Cal Poly San Luis Obispo

16 Cost Analysis
The final and perhaps most important issue in the purposed development of the Vendetta is the
cost analysis. The methodologies used in developing this analysis were found in the Raymer and
Nicolai texts. Despite the fact that the Nicolai text was written in 1974, when adjusted for
inflation, the method was accurate to within 5% of that method found in the 1999 Raymer text.
Both of these analyses are adjusted for inflation to 2000 dollars. The methods used in the cost
analysis were based on the DAPCA IV model developed by the RAND Corporation. This model
provided a means of calculating the operating cost, life cycle cost, flyaway cost, and the cost
required for research, development, test, and evaluation, or RDT&E.
The RDT&E cost was predicted to be approximately $6.5 billion; whereas, the flyaway cost for a
200 unit buy was calculated to be $128.5 million. This cost approximately 15% under that cost
required by the AIAA RFP set at $150 million dollars per 200 unit buy. The cost per aircraft
based on the number of aircraft purchased is shown below in Figure 16.1.
Figure 16.1 - Cost Analysis
The figure indicates that the cost per aircraft at a 600 unit buy is significantly less at $80.5
million. Note the cost of engineering, development, manufacturing, and materials in the cost
breakdown per unit at a 600 unit buy in comparison to the cost breakdown per unit at a 200 unit
buy; the percentages associated with development and engineering decreases while the
manufacturing and materials percentages increase. This is due to the fact that at a 600 unit buy,
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