Examination of the Flying Hour Program (FHP) budgeting process and an analysis of Commander Naval Air Forces Pacific (CNAP) FHP underfunding
Keating, Peter J.
Paulk, David A.
Jones, Lawrence R.
Mutty, John E.
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This thesis examines the Commander Naval Air Forces Pacific (CNAP) flying Hour Program (FHP) budget process and analyzes the issues causing underfunding in that program. The Department of the Navy Flying Hour Program (FHP) is used to fund requirements and justify the resources required to train aviation crews and maintain Navy / Marine Corps aircraft. The thesis begins with a comprehensive overview of the FHP, including how flying hour requirements are determined and how the funding process operates. It then analyzes the major factors contributing to CNAP perennial FHP underfunding and resource variability. Information to explain FHP underfunding is widely distributed. The thesis provides a single source reference to help CNAP FHP managers and budget personnel better understand the FHP budgeting process including historical and current causes of program underfunding. This research concludes that key causes of CNAP FHP underfunding and related problems are: (1) Budget process dynamics, including limited resources and competing priorities, (2) Unplanned and unfunded requirements, (3) Deficiencies in FHP forecasting methodology particularly the failure to incorporate the cost of previous year program funding shortfalls, (4) Poor AVDLR component reliability, (5) integrated Logistics Support (ILS) deficiencies, and (6) Variability in AVDLR pricing methodology and NWCF surcharges. The final chapter provides conclusions to address CNAP FHP underfunding and related problems. It also includes analysis of alternative budget reform concepts intended to minimize defense resource variability and increase budgeting efficiency. Finally, it suggests areas for further research.
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