Date of Award

9-1998

Document Type

Thesis

Degree Name

Master of Science

Abstract

As the Air Force budget continues to decrease, A-76 studies have become an increasingly popular method to cut costs. By cuffing costs, money is then freed up for other requirements such as force modernization. Care must be taken to ensure the process is working as designed and the actual savings are in line with projections. This thesis examines an A-76 study recently conducted at Wright Patterson AFB, OH. The focus is to evaluate the costs used in the decision and how the decision would have been affected by changes in these costs. The results indicate that some costs are incorrectly included or inflated. This means it may cost more to outsource the function than estimated. Thus, the actual savings might not be as large as the projected savings. In fact, there may not be any savings at all. This result has serious implications for the future. If savings estimates are included in future year defense budgets and the savings don't materialize, the Air Force may be unable to enact the force modernization plans as effectively as desired.

AFIT Designator

AFIT-GTM-LAL-98S-5

DTIC Accession Number

ADA354214

Comments

Presented to the Faculty of the Graduate School of Logistics and Acquisition Management of the Air Force Institute of Technology

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