Operating and Support Cost Considerations in Major Weapon System Acquisitions
Abstract
In FY 90, Operating and Support costs accounted for 73% of the Army's budget request. Thus, in an era of decreasing budgets, it is not surprising that the O&S accounts are coming under increased scrutiny. The Army must be ready to evaluate options for reducing O&S costs while still maintaining its overall force readiness. Additionally, new systems in development must be carefully analyzed to ensure that support systems are being designed to operate within future O&S appropriations. The focus of this research paper was to take an objective look at O&S cost analysis in the Army. It examines the linkage between O&S cost analysis and the Army's Planning, Programming, Budget and Execution System (PPBES). Additionally, the O&S costs of 25 weapon systems are evaluated in an effort to identify those areas where the Army should focus its O&S cost analysis. From here, the study then evaluates some of the analytical tools that can be used in this process, along with their attendant strengths and weaknesses. In summary, this study provides the background, analysis and evaluation of many of the critical issues surrounding O&S cost analysis in the Army. The study concludes with a set of recommendations which are directed at providing a logical framework for considering O&S cost analysis within the Army acquisition process. Keywords: Reports, Periodicals, Military publications.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 09, 1990
- Accession Number
- ADA221027
Entities
People
- David J. Shaffer
Organizations
- United States Army War College