National Highway Traffic Safety Administration (NHTSA)

Highly Influential Scientific Disseminations

DOT OA:

NHTSA

Preliminary Title:

Peer Review of NHTSA'S Cost Estimating Methodology 

Subject and Purpose:

For over thirty years, NHTSA has refined its methodology for estimating the initial cost and retail price impacts of proposed safety and fuel economy standards. The methodology consists of three distinct components: 1. A physical teardown and engineering analysis of the system or component under study; 2. A manufacturing cost analysis based on labor, material, burden rates, and capital assets employed in accordance with best industry practices and; 3. Retail price development based on account-by-account analysis of OEM financial statements. This project will elicit comments from knowledgeable peers on the depth and accuracy of the analytical techniques employed and, hopefully, generate suggestions for enhancement.

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Peer Review Plan: 

The Peer Review Plan includes the following elements:

(1)    The peer review would occur during the latter part of the first half of Fiscal Year 2006 and extend into the early part of the second half of Fiscal Year 2006.

(2)    The review is to be conducted independently by each peer. A written evaluation is to be submitted by each peer on completion.. The review will be conducted under an Indefinite Quantity Contract (IQC) with Battelle Science & Technology International to be awarded January 15, 2006. The final peer review report from Battelle is expected to be completed April 15, 2006.

(3)    There has been ample opportunity for the public to comment on the work before the peer review. A detailed write-up on the methodology has accompanied every cost, weight, and lead time report submitted to the public docket for many years running. .

(4)    Public comments will not be available to the peer reviewers.

(5)    There will be three peer reviewers.. 

(6)    To achieve a balanced peer review, the contractor must select  an industrial engineer, mechanical engineer, cost accountant / analyst, financial accountant, and a recognized auto industry analyst.

(7)    Battelle will select five peer reviewers who shall be approved by the NHTSA COTR prior to beginning the review.  None of the reviewers will be Battelle employees.

(8)    The public will not be asked to nominate peer reviewers.

Contact person:

Bruce Spinney

NHTSA

Office of Vehicle Safety

  Planning & Analysis

  (NVS-011)

E-mail:

bruce.spinney@nhtsa.dot.gov

Phone:

(202) 366-4925