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A parametric cost model for estimating operating and support costs of US Navy (non-nuclear) surface ships

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Author
Brandt, James M.
Date
1999-06-01
Advisor
Anderson, Timothy P.
Second Reader
Buttrey, Samuel E.
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Abstract
With few effective decision-making tools to assess the affordability of major weapon systems, management of total ownership costs is continually misunderstood. Cost analysis provides a quick and reliable assessment of affordability. Because there is no standardized method for calculating reliable estimates of operating and support (O&S) costs (the principal component of total ownership cost), this thesis formulates a parametric cost model which can be used to determine the annual O&S costs of U.S. Navy (non-nuclear) surface ships based on known (or assumed) physical characteristics and manpower expectations. Source data for the cost model is obtained from the Navy Visibility and Management of O&S Costs (VAMOSC) database, a historical cost database maintained by the Naval Center for Cost Analysis (NCCA). Through standard regression and data analysis techniques, cost estimating relationships are developed for three major cost drivers: ship light displacement, ship overall length, and ship manpower. The formulated parametric cost model is a top-level and fairly reliable representation of average annual O&S cost, and it can be used by the DOD cost community to perform component cost analyses or independent cost estimates.
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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.
URI
http://hdl.handle.net/10945/8799
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  • 1. Thesis and Dissertation Collection, all items
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