Vendetta Final Proposal Part 2 - Cal Poly

16 Cost Analysis
The final and most important issue in the purposed development of the Vendetta is the cost analysis. Before any
aircraft can win a contract it must be reasonably priced. 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 (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, there are more aircraft available to help pay the $6.5 billion cost associated with RDT&E. Furthermore, there
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