Cost Analysis for Major Defense Systems: A Telescopic View (original) (raw)

The Department of National Defence Strategic Cost Model: Development

2007

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Cost Effectiveness Analyses Models in the Defence System in Bulgaria

European Scientific Journal, ESJ, 2014

The thesis resulting from the research on the "costs-effects" relation is the principle of economic efficiency of defence capabilities. At first glance, the arguments in this direction are well-known and popular in crisis situations of various nature, including the current financial and economic crisis in the country, the question about the cost of public welfare-security and defence is debatable. This cost is manifested through the defence capabilities of a country. In the new security environment the compilation of a National Defence Strategy is a priority of the Defence Ministry, which has more and more limited resources. This means that they should be treated as an economic activity. An economic activity is considered "any purposeful activity, allocating and combining scarce resources among alternatives, making it possible to maximize the outcomes and minimize costs." The ratio between the costs and benefits of a given resource or combination of resources to achieve a pre-defined objective is pushed to the forefront and the rationalization of management decisions is based on it. This necessitates a cost effectiveness analysis hence the evaluation of the outcomes (benefits) is manifested in the "cost-effect (benefit)" analyses.

Cost Modeling of Defence Components for Smaller Scale Contingencies

2005

This paper describes the application of a computerized simulation model developed for estimating the costs associated with different defence structures. It is currently under use for cost-effectiveness studies as a part of an ongoing analysis of the future structure of the Norwegian defence. The model is meant for long term planning (15-20 years), and integrates investment costs as well as the cost of operating existing and future material and units. Forces might be simulated separately or in combinations. Examples of output will be presented. Advantages and shortcomings experienced with this type of simulation model are also discussed.

Analysis of High-Cost Long-Term Defense Programs: A Case Study of the Joint Strike Fighter

Coleção Meira Mattos: revista das ciências militares, 2020

The present paper discusses the decision-making process in defense acquisition and budgeting. While the budget for defense services and for defense in general usually presents itself as stable, the same is not true for specific programs. Certain programs reveal the political turmoil that underlies defense acquisition. This paper investigates why programs differ in terms of budget volatility and what are the main factors that drive it. To attain this purpose, our first topic is a theoretical debate about decision-making, its main actors, and the budgeting process. This is followed by a description of the United States budgeting process. The case of the Joint Strike Fighter is then studied. Complemented by literature on innovation processes, our last topic is dedicated to the following hypothesis: since the F-35 program presents itself as essentially stable in acquisition and budgeting terms, it is argued that what distinguishes it from volatile programs is its elite consensus and a suitable Defense Industrial Base. This model intends to shed light on high-cost, long-term defense programs and their volatility.

A North Atlantic Treaty Organisation framework for Life Cycle Costing

International Journal of Computer Integrated Manufacturing, 2011

There is a long and documented history of both cost growth and estimating optimism within military system acquisition programmes. This is particularly the case for multinational programmes. As the nature of future acquisition programmes will be more multinational oriented, a common approach is required to generate realistic and consistent LCC estimates for a future system. This article presents the findings to date of the NATO Research and Technology Organisation (RTO) to develop a framework for life cycle costing. This framework consists of a generic cost breakdown structure (CBS), methods and models to be used and a guideline for conducting a Life Cycle Cost (LCC) analysis in all stages of the system's life cycle. All this is summarised in a Code of Practice. The article concludes presenting the next step in the NATO cost improvement process, i.e. to exercise the guideline, for example, programmes. An independent cost estimate (ICE) is conducted on three systems to demonstrate proof of concept. The results of these ICEs will be further used to improve the guideline and the Code of Practice.

Analysis of pricing models in the defense industry to support cost projections

2016

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