Congressional Budget Office Review of Operating and Support Costs for Army Modernization
CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC
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Mr. Chairman, I appreciate the opportunity to testify on the operating and support costs associated with the Armys modernization program. At the request of this Committee, the Congressional Budget Office CBO has analyzed this important subject, and my testimony today presents the results of our inquiry. The Army is modernizing its force with more than 180 new systems, many of which are substantially more sophisticated than todays versions. Our analysis has emphasized six of these systems, representing the primary new combat systems that the Army is fielding and the ones for which detailed data were available. The analysis suggests that their operating and support costs will exceed those of antecedent versions by 45 to 70 percent in constant dollars. Indeed, there are indications that operating costs could increase substantially more, especially costs associated with the reserves and costs for spare parts and equipment overhauls.
- Economics and Cost Analysis
- Military Forces and Organizations