Materiel System Sustainment Resourcing,
Abstract
When the Army transitioned its first force modernization systems from Full Scale Engineering Development to the production phase, actual production costs greatly exceeded previously estimated costs. For this reason, when the Army was ready to field these new systems, the Army Staff became concerned with the potential for skyrocketing costs for sustaining these same systems. As a result of these concerns and to ensure that the Operating and Support (O&S) elements were in balance with each other, the Assistant Secretary of the Army for Installations, Logistics, and Financial Management tasked the Comptroller of the Army (COA) on 7 April 1983 to develop 'a methodology which will ensure that the relative O&S components in the Army programs are resourced in a balanced and understandable manner.' This paper describes the COA's efforts to establish sources of actual sustainment cost information in order to accomplish this tasking. The actions directed by the COA have ensured that essential feedback mechanisms for materiel system sustainment cost information are either ln place or under development. These mechanisms provide the ability to quickly adjust Army programs and budgets for the differences between engineering estimates of 0&S costs and the actual costs incurred by systems in the field. These COA actions have not only established reliable, accurate, and timely feedback mechanisms, they have lent credibility to the Army's resource management decision making and have assisted in the rational allocation of scarce financial resources to meet the Army's needs, goals, and objectives.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1985
- Accession Number
- ADA162148
Entities
People
- Fred J. Lokay
- Gary L. Sorrell
- John C. Franks
- Paul R. Palmer Jr.
- W. E. Depuy Jr.