An Ownership/Lease Cost Comparison Analysis of Heavy Equipment Motor Vehicles in Air Force Materiel Command
Abstract
The purpose of this thesis was to perform a ownership/lease cost comparison analysis, including the investigation of qualitative issues, of heavy equipment motor vehicles in Air Force Materiel Command (AFMC). The study examined 11 types of special purpose vehicles. Ownership cost was determined using vehicles within the categories of interest from all AFMC installations. Four AFMC installations were sampled for lease cost data and qualitative information. Once an ownership cost was determined, a comparative analysis was accomplished with lease cost information. This was done using hourly and annual cost data. Qualitative issues surrounding possible lease initiatives were addressed. Findings indicated significant cost savings would be realized if short-term, or as needed, leasing practices were adopted for low utilization vehicles. Additionally, the research found qualitative issues and mission requirements may prohibit a complete conversion to a leased special purpose fleet. The research concluded that leasing is cost effective and should be considered as a possible alternative to ownership in Air Force Materiel Command. Also, any lease initiative must include cost, utilization, and qualitative information in the decision process. Costs, Cost analysis, Cost effectiveness, Leasing, Renting, Construction equipment, Comparison, Vehicles, Military vehicles
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1994
- Accession Number
- ADA285015
Entities
People
- Charles E. Underwood Jr.
- Mark A. Karzon
Organizations
- Air Force Institute of Technology