The Navy's Model for Assessing Lease versus Buy Decisions in Satellite Communications Systems. An Evaluation.

Abstract

This thesis contains a policy analysis of the Navy's lease versus buy decision model used in the Military Satellite Communications (MILSATCOM) systems acquisition process. The general issues of the lease/buy question are considered as well as the specific quantitative methodology used in the Navy's current model. The model is found to be deficient in several ways. First, its basic assumption that public sector leasing can be less costly than buying is unfounded when total costs of the lease option to the whole economy are the criteria for comparison. Second, the model fails to compare the same system output when comparing the two financing mechanisms. The analysis of the leasing alternative is based on the presumption that a leasing instrument will fix all inputs at the time of contract negotiation while the buy analysis presumes all inputs will remain variable. Last, the model inadequately addresses issues such as survivability and interoperability and how, or if, these elements of the MILSATCOM systems decision problem affect the lease/buy decision.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1985
Accession Number
ADA159716

Entities

People

  • J. L. Phillips

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Space

DTIC Thesaurus Topics

  • Acquisition
  • Artificial Satellites
  • Command And Control
  • Command And Control Systems
  • Contracts
  • Department Of Defense
  • Governments
  • Military Satellites
  • Money
  • National Governments
  • National Security
  • Procurement
  • Satellite Communications
  • Security
  • Space Based
  • Test And Evaluation
  • United States Government

Readers

  • Economics
  • Tactical Satellite Communications Systems Engineering.
  • Theoretical Analysis.

Technology Areas

  • Space