An Analysis of Operating and Support Costs in the Department of Defense
Final rept. Sep 1990-Sep 1993
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA
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To better understand operating and support OS costs within the DoD, IDA undertook a broad-based investigation of historical OS costs. The following research questions were formulated 1 Has OS spending grown faster than the budget 2 If OS spending has grown, what has contributed to the growth and 3 Do OS costs grow for weapon systems over time To address those questions, IDA investigated the relationship between forces and aggregate OS costs for FY 1971 to 1990. That investigation indicated that OS costs are growing and that the primary sources of growth are DoDs primary mission programs and direct support programs. in general, OS cost per unit of force structure is increasing, while, for most classes of weapon systems, OS cost per dollar of capital asset value is decreasing. IDA also performed cost studies of individual aircraft to assess cost growth during the development and procurement phases of the acquisition process. Information on the F-15 and F-16 fighter aircraft indicated that estimates of OS cost tend to grow as a system progresses through development to production. Data on the FA-18 program did not support this conclusion.
- Administration and Management
- Economics and Cost Analysis