Cost-benefit analysis of permanent change of duty station (PCS) modes of travel for moves to Alaska

Abstract

This research examines whether permanent change of station (PCS) travel by privately owned vehicle (POV) to Alaska is to the governments advantage. The objectives of this research are to determine estimated total costs of PCS travel to Alaska by various modes of travel; to identify which of the PCS cost drivers has the greatest impact on government expenditures; and to calculate and project potential cost savings to the government based on the results of the cost-benefit analysis. Historical costs collected from the Defense Finance and Accounting Service are used to create a database of costs incurred by service members traveling to Alaska over the course of two years (May 2010 through April 2012). Coupled with historical travel rates, shipping estimates, and other appropriate open source information, a cost-benefit analysis is conducted comparing the three modes of travel (POV, car ferry, and air travel) available to service members traveling to Alaska. Ultimately, this study confirms that completing PCS travel to Alaska via POV is, indeed, to the governments advantage.