Cost-benefit analysis of the Department of the Navy's transition from C-9 Aircraft to C-40 Aircraft for logistic support aircraft
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Authors
Cummins, Lane
Wilborn, Tony
Subjects
Cost-benefit Analysis
C-9B Skytrain
C-40A Clipper
NUFEA
Fleet Logistic Support Wing
Acquisition
C-9B Skytrain
C-40A Clipper
NUFEA
Fleet Logistic Support Wing
Acquisition
Advisors
Franck, Raymond E.
Hildebrandt, Gregory
Date of Issue
2009-12
Date
December 2009
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
The Navy began transitioning from the aging C-9s, which peaked at a total fleet size of 27 C-9B/DC-9 aircraft, to the C-40A. However, in response to increasing defense budget scrutiny and competing priorities, the Navy has decided to put this program on hold. Although the C-9B is an aging airframe and will require mandatory Federal Aviation Administration mandated modifications and upgrades, the DC-9/C-9B airframe has recently been determined to have significant operational service life remaining. This project provides a Cost-benefit Analysis (CBA) of the changes associated with replacing the C-9B aircraft with the C-40A. We analyze three alternatives. The first assumes that the C-40A acquisition program will remain on-hold indefinitely. The second alternative foresees the C-40A acquisition resuming as currently projected in FY2015. The third alternative involves the original C-40A acquisition program as per Naval Air Plan 2030 (NAP 2030). The objective is to compare the three alternatives, choosing the alternative, which provides the greatest net benefit and most efficient use of resources. The analysis will involve data collection of operational costs per flight hour, and total costs over the life of the program. Our cost-benefit analysis is intended to indicate the best course of action to provide continued execution of the Navy's Unique Fleet Essential Aircraft (NUFEA) mission. We intend to document all costs incurred and potential savings from a transition to the C-40 aircraft. We find that Alternative Three has lower discounted costs, as well as lower risk and better capabilities, and therefore recommend the Navy transition back to the original C-40 program as soon as practical.
Type
Description
MBA Professional Report
Series/Report No
Department
Business Administration
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
xiv, 87 p. ; 28 cm.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.