Date of Award

3-23-2017

Document Type

Thesis

Degree Name

Master of Science in Engineering Management

Department

Department of Systems Engineering and Management

First Advisor

Jared A. Astin, PhD.

Abstract

The objective of this research is to determine potential cost savings associated with Air Force unaccompanied housing divestiture. This research uses Air Education and Training Command (AETC) installations as the data sample for the analysis, and will analyze the status quo, privatization, and identical FSRM options. With 16% of Air Force unaccompanied housing currently rated at various levels of inadequacy and the PRV for the inadequate housing at $2,315,773,149.00, the costs associated with renovating the inadequate unaccompanied housing is substantial. Moreover, the inadequacy of unaccompanied housing is part of the Air Force’s acceptance of risk in facilities and infrastructure to recapitalize and modernize aging aircraft and equipment (Wynne & Moseley, 2007). Compounding the current situation, post-sequestration budgets have a high degree of uncertainty with regards to funding (Harrison, 2013). A 50-year net present value cost estimation model, a comparative analysis of potential scenarios, and a risk analysis based on the Air Force risk assessment model was used to estimate costs and categorize potential risks involved with each option. The cost estimation model and risk matrix determined that identical FSRM is the best choice moving forward, with the lowest potential total cost of ownership and risk, to the Air Force.

AFIT Designator

AFIT-ENV-MS-17-M-188

DTIC Accession Number

Pending

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