New PDF release: Analytics of Third-Party Claim Recovery for Military

Military History

By John E. Peters

ISBN-10: 0833031252

ISBN-13: 9780833031259

This briefing studies findings on no matter if advertisement guaranty restoration corporations can be hired results successfully to aid the defense force with their guaranty claims for airplane engines.

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Extra info for Analytics of Third-Party Claim Recovery for Military Aircraft Engine

Example text

The team asked how much additional value might a warranty recovery firm find if it found only 15, 20, 25, or 30 percent additional legitimate claims? The figure above answers the question based on the number of engines estimated to be under warranty in 2001, 2002, and 2003. 38 Remaining Issues to Be Resolved • Basis for fee: – Services do not know their baselines – Rate and basis for calculating it should be negotiated • Payment of fee—may require congressional action • Potential impact of improved warranty recovery on engine prices RAND NDRI If the Services were to decide that they want the assistance of a highquality warranty recovery firm, some issues would have to be resolved.

The experience of United Airlines is suggestive: The implementation of a third-party warranty claims recovery process yielded increased recoveries, no increase in engine prices, and stricter adherence to the time limits specified in the warranties. 44 Conclusions (1) • Results of this study are largely congruent with results from earlier research • At a macro level the Service environment seems generally suitable for employing a warranty recovery contractor • But at a detailed level, the issue is whether prospective additional recoveries would be significant • Engine-by-engine analysis would yield moredefinitive conclusions RAND NDRI In principle, our findings suggest that the use of contractors for additional engine warranty claims recoveries is feasible for some parts of DoD.

The research team also talked with warranty recovery firm corporate leadership to try to understand their business practices. Some of these officials are Air Force veterans intimately familiar with that Service’s maintenance records. From these interviews, the team learned that these companies have trained data collection personnel, and if a warranty recovery firm wants to use automated tools, it will likely use a digital scanner to transfer client records into its files. These same corporate officials also asserted that their methods were completely compatible with Service maintenance records.

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Analytics of Third-Party Claim Recovery for Military Aircraft Engine by John E. Peters


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