Comparative Cost Analysis of P-3 Active and Reserve Aviation Forces: The Economics of Proposed Force Mix Alternatives

Abstract

This thesis describes a methodology for estimating the annual operating and support costs of similarly equipped active and reserve VP squadrons. The costs analyzed include expenditures for personnel, equipment and support associated with maintaining a VP capability. A costing methodology developed by the RAND corporation provided the basis for developing the cost comparisons. The annual cost of the reserve VP squadron ($14.6 million) was found to be 44.5% of the cost of the active squadron. An annual savings of over $18.2 million results when a reserve squadron replaces an active squadron. The primary recurring cost factors that drive the annual costs of active and reserve VP squadrons and contribute to cost differentials are identified and discussed. Realization of cost savings are valid only for marginal changes in the total VP force. The total cost implications of large VP force mix changes, as currently proposed by DoD and the DoN, are addressed.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1991
Accession Number
ADA247256

Entities

People

  • Carl E. Carson Iii
  • Michael R. Wrinkle

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Aircraft Equipment
  • Aircrafts
  • Business Administration
  • California
  • Cost Analysis
  • Cost Estimates
  • Enlisted Personnel
  • Financial Management
  • Flight Training
  • Military Organizations
  • Military Personnel
  • Military Science
  • Money
  • National Security
  • Personnel Management
  • Students
  • United States

Readers

  • Aerospace logistics and air mobility.
  • Life Cycle Cost Analysis
  • Military Mobilization and Reserve Forces Studies.