Comparative cost analysis of P-3 active and reserve aviation forces : the economics of proposed force mix alternatives

120 Pages·2.1 MB·en_US

by  Wrinkle, Michael Richard.;Carson, Carl Eugene.;McCaffery, Jerry.

NAVAL POSTGRADUATE SCHOOL
Monterey, California
THESIS
COMPARATIVE COST ANALYSIS OF P-3 ACTIVE
AND RESERVE AVIATION FORCES: THE
ECONOMICS OF PROPOSED FORCE MIX
ALTERNATIVES
by
Michael Richard Wrinkle
and
Carl Eugene Carson III
JUNE
1991
Thesis Advisor: Jerry McCaffery
Approved for public release; Distribution is unlimited
T256330

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Naval Postgraduate School (IfapplicableA)S Naval Postgraduate School
6c.ADDRESS (City, StateandZIPCode) 7b.ADDRESS (City, State, andZIPCode)
Monterey, CA 93943-5000 Monterey, CA 93943-5000
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11 TITLE (IncludeSecurityClassification)
COMPARATIVE COST ANALYSIS OF P-3 ACTIVE AND RESERVE AVIATION FORCES THE ECONOMICS
OF PROPOSED FORP.F. MTX ALTERNATIVES
12. PERSONALAUTHORS
MICHAEL RICHARD WRINKLE and CARL EUGENE CARSON III
13a.TYPE OF REPORT 13b.TIME COVERED 14. DATEOF REPORT (Year, Month, Day) 15. PAGE COUNT
Master' s Thesis FROM TO JUNE 1991 105
16. SUPPLEMENTARY NOTATION
The views expressed are those of the authors and do not reflect the official
policy or position of the Department of Defense or the U.S. Government
17.COSATICODES 18. SUBJECTTERMS (Continueonreverseifnecessaryandidentifybyblocknumbers)
Active vs. Reserve P-3 squadron comparative
FIELD GROUP SUB-GROUP
costs
19.ABSTRACT (Continueonreverseifnecessaryandidentifybyblocknumbers)
This thesis describes a methodology for estimating the annual operating and
support costs of similarly equipped active and reserve VP squadrons. The costs
analyzedinclude 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.
20.XDXISUTNRCILBAUSTSIIOFNI/EADVA/IULNALBIIMLIITTEYDOF ABSTSRAAMCETAS RPT DTIC USERS |21. AuBnSTcRlACaTsSsEiCUfRiITeYdCLASSIFICATION
22a. NAME OF RESPONSIBLE INDIVIDUAL >2b.TELEPHONE (IncludeAreaCode) 22c. OFFICE SYMBOL
Jerry McCaffery [phone] AS/Mm
>D Form 1473, JUN 86 Previous editions are obsolete. SECURITYCLASSIFICATION OFTHISPAGE
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Approved for public release; Distribution is unlimited
Comparative Cost Analysis of
P-3 Active and Reserve Aviation Forces:
The Economics ofProposed Force Mix Alternatives
by
Michael RichardWrinkle
Commander, United States Naval Reserve
B.S., San Jose State University, 1974
and
Carl Eugene Carson HI
Lieutenant Commander, United States Naval Reserve
B.A, Furman University, 1978
Submitted in partial fulfillment ofthe
requirements for the degree of
MASTER OF SCIENCE
IN MANAGEMENT
from the
NAVAL POSTGRADUATE SCHOOL
JUNE 1991