CONUS vs OCONUS Depot Maintenance Cost Comparison Model.
ARMY DEPOT SYSTEM COMMAND CHAMBERSBURG PA
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This model sums the present value of 10 years of net maintenance labor costs, net packing and transportation costs, net additional facility equipment and training costs, and net increased pipeline costs to maintain the same level of readiness for each alternate site. The net cost is the actual estimated cost minus the federal, state and local income taxes, and the reduction in unemployment and welfare costs resulting from the direct and indirect jobs resulting from this expenditure. The Construction Engineering Research Lab economic models were used with the Department of Commerce. U.S. input-output data to provide employment and income multipliers as well as income and employment factors per 1,000,000 of expenditures for several major business sectors. The principal findings are that 1 The net costs to the U.S. Government of performing depot maintenance and therefore many other military functions at CONUS sites versus OCONUS sites is significantly less than many previous studies have shown, 2 The primary factor in determining if it is cost effective to overhaul an item in CONUS vs OCONUS is manhours per item required divided by measurement tons shipping cubic feet40 per item, and, 3 Other major factors are the DM1 exchange rate, the total U.S. tax rate, the additional facilities and equipment costs, and annual replacement pipeline costs. An example of operations research.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies