The DoD unit cost initiative: a Navy overview, economic analysis, and review of base operations support cost allocation.
Seiden, Neil E.
Harshman, Richard A.
Gates, William R.
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The purpose of this thesis is to provide an overview of the Department of Defense (DoD) initiative entitled unit cost resourcing and to review the Navy progress in implementing the unit cost concept initiative. An analysis of the unit cost concept is performed within the context of a microeconomic framework. Additionally the thesis will review the DoD method for allocating Base Operations Support (BOS) costs which are included as part of the unit cost goals. An example alternative allocation method was designed and used for illustrative and comparative purposes only. The history and background of unit cost are also provided. The research consisted of interviewing senior Navy and DoD officials with regard to implementing the unit cost concept and to ascertain its future within the Department of the Navy. The research focused on collecting data from Navy field commands that represent some of the areas in which unit costing will be or has been implemented. The data from the field commands was analyzed and compared to reports generated by the Defense Manpower Data Center (DMDC) at Monterey, California.
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