Analysis of cost cutting transportation initiatives identified during the Defense Management Review process

Abstract

Faced with the likely prospect of steadily declining defense budgets the President initiated the Defense Management Review (DMR). In response to this review, DOD agencies identified $38B in cost savings initiatives. This thesis provides the reader with a comprehensive analysis of those transportation-related initiatives addressed by specific Defense Management Review Decisions (DMRD) as well as those that indirectly emanated from the general DMR process. Also included is an introduction to the complicated issue of transportation funding which covers both the Defense Business Operations Fund (DBOF) and unit costing. Finally ,the author discusses the current funding shortfall that the Air Mobility Command (AMC) is experiencing as a result of the reduction in military transportation budgets. The author concludes with a summary of the discussed issues, highlighting the strenghs and weaknesses of each.