A cost benefit analysis of the Naval Reserve Force frigates

Abstract

This thesis analyses the Naval Reserve Force Oliver Hazard Perry class (FFG-7) guided missile frigates. It assesses the cost-effectiveness of operating these ships in the Naval Reserve fleet vice the Active fleet. The study begins with a brief history of the Naval Reserve Force (NRF) and outlines its current role and mission. A cost identification and comparison of operating the FFGs in each fleet follows. To capture all of the relevant costs, this comparison is based on a model developed by the RAND Corporation and modified to meet the needs of this study. The analysis then assesses the ship's operational readiness by comparing the ships' performance on Combat System Assessments and the major engineering exams. Following this, the quality of life on board the NRF FFGs is qualitatively evaluated. This analysis concludes that using FFGs in the NRF is not the most cost-effective option. Alternative recommendations are then provided for their more efficient use.