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Analytics of Third-Party Claim Recovery for Military Aircraft Engine
Analytics of ThirdParty Claim Recovery for Military Aircraft Engine Author:John E. Peters This briefing reports findings on whether warranty recovery firms could beemployed effectively to assist the armed forces with their warranty claimsfor aircraft engines. The General Accounting Office periodically hascriticized the Services for poor oversight of warranty claims, and therelevant trade literature suggests that the commercial airli... more »nes discover andfile only about 30 percent of the warranty claims to which they are entitledcontractually. Such airlines as United Airlines procure the services ofwarranty claims firms annually. A number of circumstances often are allegedthat would limit the effectiveness of a third-party aircraft engine warrantyclaims process in the military context. These concerns seem misplaced. Theuse of contractors for this purpose in principle is feasible, but themilitary use of engine warranties is decreasing, and even a substantialincrease in claims engendered by a third-party program would yield only asmall return in terms of dollars or equivalent goods and services.Accordingly, a program is unlikely to yield benefits worth theadministrative efforts required.« less