This study analyzed a system dynamics model for outsourcing engineering services in a large and complex project organizational structure that is typically associated with nuclear power plants. A literature review indicated that most of the reviewed papers implied the project engineering resources were totally insourced or the authors were silent regarding any resources that were outsourced. Comprehensive sensitivity analysis of various model parameters was performed. Results of running the SD model indicate that the quality and productivity of the outsourced resources and the initial number of assigned experienced engineers significantly impacted the amount and timing of engineering work completion. An analysis was also performed on the project outcomes by varying the number of initial and changed engineering tasks. The results indicate the decision to insource/outsource engineering work on nuclear power plant projects may have significant cost and time impacts which should be considered by decision makers.

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