Pro Forma: A Meta-Model for Force Structure Costing
Abstract
The two largest expenses in the Army budget are personnel and operating costs (MPA and OMA), both of which are correlated to the size of the Army. The easiest way to reduce the Army's budget in the face of the federal budget deficit and the end of the cold war is, then, to reduce the number of soldiers on active duty. The Army, already in the midst of a major reduction in its size, must be able to rapidly react to further reductions. Until now, no quick, accurate method of determining the budget impact of a force reduction has been available. Pro Forma, a model developed by the Operations Research (OR) Center at West Point, allows analysts to rapidly estimate the budgetary impacts of different form size and basing options. The OR Center was tasked to assist the Army Budget Office (ABO) by producing a model that was quick, accurate, and easy to use. The ABO's main task is keeping track of current expenditures, not making budgetary predictions. Compounding matters is the high personnel turbulence in the office, with many people working there for only a year or two. Pro Forma, a term taken from the business practice of estimating a budget from current expenditures, is a user-friendly, spreadsheet based model designed to meet ABO's needs. It concentrates on OMA dollars because of its many component accounts, called Primary Sub-Programs (PSPs), but includes MPA and family housing (AFHO) expenses.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 08, 1992
- Accession Number
- ADA350476
Entities
People
- James P. Cummings
Organizations
- United States Military Academy