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The impact of personnel changes on Navy base Operations and Maintenance (O&M) expenditures: a macro and micro study

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Author
Romig, Larry G.
Date
1994-06
Advisor
Hildebrandt, Gregory G.
Liao, Shu S.
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Abstract
During the FY 1994 Senate Appropriations Sub-Committ::e meetings the Navy Operations and Maintenance (O&M) budget was reduced by $51.1 million (.25 percent). Most of the reduction was to Base Operating Support O&M. This reduction was a direct result of the budget being submitted which contained a manning level of 15,000 more personnel (2.5 percent) than the actual level authorized for FY 94. In order to better nnrl~'"Stand whether the biidgcl reduction is appropnate, th1s thesis examines whether there are acceptable methods of relating base O&M expenditures to personnel levels and other variables. The question is examined at both the macro-level for the Navy and at the micro-level for San Diego Naval Station. A cost estimating model, Quick Cost, is utilized to determine the macro-level relationship. Navy and Air Force cost prediction models are introduced and compared for their usefulness at the micro-level. A regression analysis of San Diego Naval Station's O&M is shown to be misleading as O&M is negatively related to both personnel level and number of ships supported. These results are critiqued, and problems with this regression analysis are discussed. The analysis is used to develop some suggested methods of allocating manning data and other variables to Base Operating Support O&M. Further analysis of this allocation question is required.
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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http://hdl.handle.net/10945/42914
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