Cost Analysis of Reserve Force Change

Non-Recurring Costs and Secondary Cost Effects

by John F. Schank, Susan J. Bodilly, A. A. Barbour

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This report describes a methodology for estimating the nonrecurring costs of Reserve component changes in the U.S. Air Force and the U.S. Navy and draws inferences about the factors that affect nonrecurring unit costs. The report also addresses other cost effects associated with unit charges, including changes in annual recurring costs and indirect or force-wide costs. Construction, support equipment, and aircrew training costs account for the majority of the nonrecurring costs in the various case studies.The findings suggest that nonrecurring costs can be reduced if (1) the basing location has existing facilities; (2) prior-service aircrew personnel with experience in the new weapon system can be recruited; and (3) the Reserve unit is located on an Active base that has excess capacity and can share in various logistic-support assets.

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