An Analysis of CG-47 Cruiser Class Operating and Support Costs Trends and Cost Relationship with Platform Age
Abstract
The purpose of this research is to identify trends in CG-47 Operating and Support (O&S) costs and determine if costs, specifically maintenance costs, are increasing as the platforms in the ship class age. O&S data from FY1987 to FY2010 supplied by the Naval Center for Cost Analysis were used to analyze trends and create statistical models for analyzing the relationship between cost and age. This thesis is intended to supplement a similar statistical analysis performed by the Institute for Defense Analysis (IDA) which analyzed CG-47 O&S costs from FY1984 to FY1999 and found no significant relationship between costs and age. Additionally, concerns in the Navy's current surface fleet force-structure plans will be summarized and analyzed to establish relevance and background. Analysis of O&S cost data in this thesis yielded results that differed from the 2002 IDA report, and showed a statistically significant relationship between platform age and maintenance costs. This analysis is intended to aid in future naval leadership decisions on how best to achieve the desired force structure of the fleet. Conclusions drawn from this thesis will contribute relevant cost prediction insight that could greatly impact future decisions between extending the life of active surface combatants versus developing and procuring new ships. Predictions of future maintenance funding requirements drawn from this thesis can be incorporated into ship service-life decisions and potentially improve cost forecast accuracy and legitimacy.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2011
- Accession Number
- ADA547916
Entities
People
- Joseph R. Mcdonald
Organizations
- Naval Postgraduate School