Estimating the fully burdened cost of fuel for a naval aviation fixed wing platform

Abstract

This thesis provides the background and motivation for furthering the Fully Burdened Cost of Fuel (FBCF) cost estimating methodology and calculations in the context of a naval aviation fixed wing platform. The FBCF contribution to Total Ownership Cost in the Analysis of Alternatives for Major Defense Acquisition Programs requires steady advancement to meet an October 2011 implementation deadline. Applying OSD guidance and calculator mathematical process facilitates comparison of the additional costs to deliver and protect fuel demanded by the F/A-18E/F aircraft with those added costs for a ship platform. Total costs throughout a realistic operation and support life cycle and applying a notional scenario to the newest calculator demonstrate a range of cost estimating methods. Our conclusions support previous analysis that air refueling contributes significantly to logistics support costs and that investment in fuel conservation technologies and platform endurance can be a strategic opportunity for the Department of Defense and the Department of the Navy. The aircraft FBCF is multiple times higher than the fuel commodity price as compared to the FBCF for ships, which is only fractionally higher than the fuel commodity price. Assured Delivery Price of supplied fuel calculations are complicated for platforms that require multiple refueling support assets.