Metrics to Compare Aircraft Operating and Support Costs in the Department of Defense
RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA SANTA MONICA
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This report examines what definition of operating and support O and S cost per flying hour CPFH is best suited to compare the O and S costs of different aircraft, and how the costs and aircraft usage should be normalized when making comparisons. Such comparisons could inform choices by Department of Defense DoD decision makers regarding acquisition of new aircraft and retirement or retention of existing aircraft. The CPFH metric could also be used to monitor the progress of aircraft programs in meeting O and S affordability constraints. CPFH is a well-known DoD cost metric. CPFH is calculated as an aircraft fleets O and S costs divided by its flying hours. CPFH is widely used by the military services for different purposes. One common usage is for the flying-hour programs FHPs used by the services to budget resources to achieve aircrew proficiency. The FHPs use a CPFH defined by DoD guidance that is intended to include only costs that vary with flying hours. FHP decision makers want to assess the budgetary impacts that incremental changes inflying-hour levels have on certain cost elements that vary directly with changes in flying hours i.e., directly funded fuel, consumable materials and repair parts, depot-level reparables. Related usage of CPFH is for flying-hour reimbursable billing rates, i.e., how much other DoD, other federal, other customers, and foreign military should be charged on a per-flying-hour basis. These rates build upon the FHP CPFH, adding in cost categories less directly impacted by flying hours such as depot-level maintenance costs.
- Military Aircraft Operations
- Economics and Cost Analysis