Comparative cost analysis of P-3 active and reserve aviation forces : the economics of proposed force mix alternatives

• Main Author: Wrinkle, Michael Richard.
• Other Authors: McCaffery, Jerry
• Language: en_US
• Published: Monterey, California. Naval Postgraduate School 2013
• Online Access: http://hdl.handle.net/10945/28041

This thesis describes a methodology for estimating the annual operating and support costs of similarly equipped active and reserve VP squadrons. The costs analyzed include expenditures for personnel, equipment and support associated with maintaining a VP capability. A costing methodology developed by the RAND corporation provided the basis for developing the cost comparisons. The annual cost of the reserve VP squadron ($14.6 million) was found to be 44.5% of the cost of the active squadron. An annual savings of over $18.2 million results when a reserve squadron replaces an active squadron. The primary recurring cost factors that drive the annual costs of active and reserve VP squadrons and contribute to cost differentials are identified and discussed. Realization of cost savings are valid only for marginal changes in the total VP force. The total cost implications of large VP force mix changes, as currently proposed by DoD and the DoN, are addressed