Military Cost-Benefit Analysis

Military Cost-Benefit Analysis PDF

Author: Francois Melese

Publisher: Routledge

Published: 2015-03-27

Total Pages: 325

ISBN-13: 131753171X

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This is the first comprehensive book on Military Cost-Benefit Analysis and provides novel approaches to structuring cost-benefit and affordability analysis amidst an uncertain defense environment and cloudy fiscal prospects. Lifting the veil on military Cost-Benefit Analysis, this volume offers several new practical tools designed to guide defense investments (and divestments), combined with a selection of real-world applications. The widespread employment of Cost-Benefit Analysis offers a unique opportunity to transform legacy defense forces into efficient, effective, and accountable 21st century organizations. A synthesis of economics, statistics and decision theory, CBA is currently used in a wide range of defense applications in countries around the world: i) to shape national security strategy, ii) to set acquisition policy, and iii) to inform critical investments in people, equipment, infrastructure, services and supplies. As sovereign debt challenges squeeze national budgets, and emerging threats disrupt traditional notions of security, this volume offers valuable tools to navigate the political landscape, meet calls for fiscal accountability, and boost the effectiveness of defense investments to help guarantee future peace and stability. A valuable resource for scholars, practitioners, novices and experts, this book offers a comprehensive overview of Military Cost-Benefit Analysis and will appeal to anyone interested or involved in improving national security, and will also be of general interest to those responsible for major government programs, projects or policies.

An Evaluation of the Application of Economic Analysis and Cost-Benefit Analysis Tools in the DOD Environment

An Evaluation of the Application of Economic Analysis and Cost-Benefit Analysis Tools in the DOD Environment PDF

Author: Carlos J. Silva

Publisher:

Published: 2000-06-01

Total Pages: 114

ISBN-13: 9781423536550

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This thesis reviews the application of cost-benefit analysis (CBA) in the Department of Defense (DOD) and the software and automated tools used in these applications. The thesis focuses on the analytic capabilities of the software and tools as applied to cost-benefit analysis problems in the DOD environment. The principles of cost-benefit analysis are used to evaluate the utility of the existing software applied to DOD cost-benefit analyses. The research identifies the cost-benefit analysis automated tools used in the DOD and the regulations that apply to cost-benefit analyses in the DOD. It also lists the organizations involved in conducting CBA. By reading the list of tools and their features, readers will become aware of what is currently available in DOD to facilitate the reliability of CBA. The study also focuses on the ECONPACK software developed by the U.S. Army Corps of Engineers. ECONPACK's strengths and weaknesses are analyzed. Also, ECONPACK is used to replicate two earlier studies - one a cost-benefit analysis of retail activities at military bases, the other a cost-effectiveness study of the operational availability of the Brazilian and Argentinean A-4 fleet. The replications demonstrate that ECONPACK is designed to support cost and cost-effectiveness analyses rather than true cost-benefit analyses.

A Cost-Benefit Analysis of a Military Thrift Savings Plan

A Cost-Benefit Analysis of a Military Thrift Savings Plan PDF

Author: Richard G. De Guzman

Publisher:

Published: 2000-12-01

Total Pages: 125

ISBN-13: 9781423532361

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The transition from defined benefit to defined contribution retirement plans represents the most significant change in both the private sector and civil service employee retirement systems in the last twenty years. The Thrift Savings Plan (TSP), a tax-deferred, defined contribution plan for federal civilian employees, was established in 1986 as part of the Federal Employee Retirement System. This thesis discusses the costs and benefits of a TSP plan for the uniformed services. The objective of the research addresses the costs of a military TSP. Government studies, periodicals, and the Internet were examined to identify the strengths and weaknesses of the federal TSP. Next, a probabilistic spreadsheet model using Monte Carlo simulation was developed to forecast deferred tax revenue, which represents the most significant cost associated with a military TSP. An analysis of the results indicates that the simulations come within 2.6 percent of the initial Department of Defense's forecast. On October 30, 2000, the National Defense Authorization Act for fiscal year 2001 was enacted. This act included a military TSP called the Uniformed Services Payroll Savings Plan. It is recommended that future cost estimates use probabilistic spreadsheet modeling to provide more relevant information to the decision making process.

Cost-Benefit Analysis of Providing a Special Subsistence Allowance to Military Pesonnel Who Qualify for Food Stamps

Cost-Benefit Analysis of Providing a Special Subsistence Allowance to Military Pesonnel Who Qualify for Food Stamps PDF

Author: Curtis A Becker (Jr)

Publisher:

Published: 2000-06

Total Pages: 95

ISBN-13: 9781423538028

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Recent reports cite that military Food Stamp Program beneficiaries may range from 6,400 to 20,000. The need for food stamps has been attributed to several factors, one of which is the perceived military "pay gap". Although, significant strides have been made in recent years to improve quality of life for our service men and women and their families, the military pay system tends to lag behind the civilian employment cost growth index. Despite the strong economy that we currently enjoy, many of our service personnel are struggling to make ends meet. The analysis compared the costs associated with providing eligible personnel with food stamps to the cost of providing a Special Subsistence Allowance in lieu of food stamps. On the surface, the Federal Government may realize approximately $7,862,400 savings if the additional subsistence is set at $180 per beneficiary per month, as posed in Senate legislation. Despite such savings, the Department of Defense is constrained by its compensation system, which uses promotion and pay increases to encourage advancement and longevity as a basis for compensation. The Special Subsistence Allowance in lieu of food stamps could also have devastating financial effects for some while providing a cash bonus for others.

Cost-Benefit Analysis of the 2006 Air Force Materiel Command Test and Evaluation Proposal

Cost-Benefit Analysis of the 2006 Air Force Materiel Command Test and Evaluation Proposal PDF

Author:

Publisher:

Published: 2008

Total Pages: 0

ISBN-13:

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As with other military services, the Air Force must recapitalize its equipment, which is an expensive undertaking. In 2006, to make additional funds available for recapitalization, the Office of the Secretary of Defense issued Program Budget Decision 720 (PBD-720), which directed a $6.2 billion reduction in support contractors over FYs 2007 through 2011. Air Force Materiel Command's (AFMC's) share of this reduction totaled $839 million, of which $371 million was T & E's share. To meet the $371 million budget objective, AFMC considered several options. One of these options, referred to as the "Organizational Streamline Approach," focused on the consolidation and potential divestiture of U.S. Air Force T & E facilities and capabilities. This option was included in the FY 2008 budget process.

Final Report of the Panel on the Department of Defense Human Capital Strategy

Final Report of the Panel on the Department of Defense Human Capital Strategy PDF

Author: Lawrence M. Hanser

Publisher: RAND Corporation

Published: 2008

Total Pages: 72

ISBN-13:

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In response to the 2006 QDR, DoD created a human capital strategy (HCS) that could provide more flexibility in quickly accessing the right skills at the right place. It called for three initiatives: competency-based occupational planning, performance-based management, and enhanced opportunities for personal and professional growth. A panel of experts convened by RAND reviewed the HCS. This report presents the panel's conclusions and recommendations.

The Cost of a Military Person-year

The Cost of a Military Person-year PDF

Author: Carl J. Dahlman

Publisher: Rand Corporation

Published: 2007

Total Pages: 162

ISBN-13: 0833041517

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This work presents a new method of estimating the cost of a military person-year that focuses on the actual cost of the retirement benefits that the federal government must provide to military personal, where previously available measures focused only on annual retirement-fund accrual costs. A major implication of this alternative calculus is that truly effective force management requires an increased focus on the cost of personnel.

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