Business case analysis: increasing Air Force dining hall use as an alternative to closure

Abstract

The current Defense fiscal environment demands careful analysis of every dollar spent, and elimination of wasteful and inefficient practices. Over the last decade, the Air Force has closed 49 dining facilities, in many cases due to underuse. Recent graduate research has shown the potential for millions of dollars in savings as a result of closure and the resultant payment of Basic Allowance for Subsistence (BAS) to all airmen in its place. However, no analysis has been performed on the potential impact of increasing dining hall patronage by allowing all base personnel (adding officers, civilians, and retirees) to make use of them when and where feasible. This project will examine this alternative course of action and quantify the savings associated with this possibility by considering additional food expenses and reasonable expectations for increased patronage by performing a business case analysis on the recent pilot program at the Sierra Inn at Travis AFB, CA. This business case analysis template allows for an objective assessment of that decision based on its net present value, and should be of value elsewhere in the Air Force in both the decision to implement the Food Transformation, and as a metric of effectiveness after implementation.