Materiel System Sustainment Resourcing,
MANAGEMENT CONSULTING AND RESEARCH INC FALLS CHURCH VA
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When the Army transitioned its first force modernization systems from Full Scale Engineering Development to the production phase, actual production costs greatly exceeded previously estimated costs. For this reason, when the Army was ready to field these new systems, the Army Staff became concerned with the potential for skyrocketing costs for sustaining these same systems. As a result of these concerns and to ensure that the Operating and Support OS elements were in balance with each other, the Assistant Secretary of the Army for Installations, Logistics, and Financial Management tasked the Comptroller of the Army COA on 7 April 1983 to develop a methodology which will ensure that the relative OS components in the Army programs are resourced in a balanced and understandable manner. This paper describes the COAs efforts to establish sources of actual sustainment cost information in order to accomplish this tasking. The actions directed by the COA have ensured that essential feedback mechanisms for materiel system sustainment cost information are either ln place or under development. These mechanisms provide the ability to quickly adjust Army programs and budgets for the differences between engineering estimates of 0S costs and the actual costs incurred by systems in the field. These COA actions have not only established reliable, accurate, and timely feedback mechanisms, they have lent credibility to the Armys resource management decision making and have assisted in the rational allocation of scarce financial resources to meet the Armys needs, goals, and objectives.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies