A Life Cycle Cost Analysis of the European Vehicle Buy Program.
Abstract
The purpose of this thesis was to determine if the European Vehicle Buy Program is economical. Approximately 6,000 vehicles have been purchased through the program, with 3,000 more to be bought in the near future. A life cycle cost (LCC) model was used to determine cost. Historical costs were input into the LCC model. Extrapolation techniques were developed to project costs when historical data were not available. This analysis supported previous studies which concluded that the European Vehicle Buy program was economical. It concluded that the program's total cost will be $12.6 million (26%) per year less than alternative of buying and operating American vehicles. The program can be improved to save $13.4 million (28%) per year by buying certain ground vehicle types in the United States and sending them to Europe. The additional benefit of enhanced interoperability with NATO allies also lends support to continuing the European Vehicle Buy Program. Vehicle types analyzed included buses (intercity and school) and trucks (pickup, platform, dump, tractor, panel, forklift, tank, etc.) Originator-supplied keywords include: Offshore procurement, and military vehicles.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1984
- Accession Number
- ADA148446
Entities
People
- M. G. Harris
Organizations
- Air Force Institute of Technology