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The Performance of Reduction of Total Ownership Cost (RTOC) Pilot Programs
NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLICPOLICY
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In April 1998 within the initiation of Section 912c studies PM Oversight of Life Cycle Support DoD expanded the responsibilities of Program Managers for designing and producing new weapon systems to include more accountability for the TOC of the systems including OS Operation and Support costs. At a December 1998 DSAC Defense Systems Affordability Council each service agreed to provide 10 program names for the 9l2c study. DoD would continue to track all 30 service pilot programs as R-TOC programs. This thesis analyzes the utilization of Reduction of Total Ownership Costs R-TOC pilot programs in DoD Services. It identifies the lessons learned from the R-TOC pilot programs and the obstacles encountered to promote efficient reductions in the Total Ownership Costs of DoD weapon systems. It also makes recommendations for DoD leadership to establish a more efficient R-TOC environment. The conclusion is that the performance of R-TOC is efficient because it forces PMs to consider TOC in their programs and helps to identify obstacles and encourages saving initiatives. Although further progress will be captured by blocking the inhibitors identified in Chapter IV, OSD should continue advocating R-TOC.
APPROVED FOR PUBLIC RELEASE