Accession Number:

ADA159716

Title:

The Navy's Model for Assessing Lease versus Buy Decisions in Satellite Communications Systems. An Evaluation.

Descriptive Note:

Master's thesis,

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s):

Report Date:

1985-06-01

Pagination or Media Count:

71.0

Abstract:

This thesis contains a policy analysis of the Navys lease versus buy decision model used in the Military Satellite Communications MILSATCOM systems acquisition process. The general issues of the leasebuy question are considered as well as the specific quantitative methodology used in the Navys current model. The model is found to be deficient in several ways. First, its basic assumption that public sector leasing can be less costly than buying is unfounded when total costs of the lease option to the whole economy are the criteria for comparison. Second, the model fails to compare the same system output when comparing the two financing mechanisms. The analysis of the leasing alternative is based on the presumption that a leasing instrument will fix all inputs at the time of contract negotiation while the buy analysis presumes all inputs will remain variable. Last, the model inadequately addresses issues such as survivability and interoperability and how, or if, these elements of the MILSATCOM systems decision problem affect the leasebuy decision.

Subject Categories:

  • Numerical Mathematics
  • Logistics, Military Facilities and Supplies
  • Unmanned Spacecraft

Distribution Statement:

APPROVED FOR PUBLIC RELEASE