A Comparative Analysis of the Labor Force Structure at Arnold Engineering Development Center and the Naval Air Propulsion Center
AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH SCHOOL OF SYSTEMS AND LOGISTICS
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This study compared the costs and benefits of the manning structure of two DoD ground test facilities, Arnold Engineering Development Center AEDC and the Naval Air Propulsion Center NAPC. Total costs included all fixed and joint costs for each facility. The purpose of the study was to determine 1 the existence and extent of cost differences between the two facilities, 2 reasons for these cost differences, and 3 their impact. The results indicate that AEDC is a lower cost facility, on a total cost basis. This lower cost is primarily a function of varying manning to meet required workload. In addition, AEDC has both higher marginal total costs and higher marginal labor costs. As a result, AEDC is more efficient at lower levels of workload. A literature search revealed several possible benefits, or lack thereof, associated with using private sector labor to accomplish government tasks. A subjective evaluation of historical data, and current procedures was made to determine if these applied to the labor force at AEDC. The overall assessment was that some of the benefits and drawbacks do exist. The impact is that the benefits outweigh the drawbacks.
- Economics and Cost Analysis