Naval Aviation Costs: Targeting Operations and Support

Abstract : When assessing the strength of today s Department of Defense (DoD) weapon systems, affordability is just as important as performance. Acquisition leadership is not focused only on determining whether a weapon system is affordable in the development and production phases but, more important, in sustainment, where 70 percent of programs life-cycle costs are borne. History has shown that operations and support (O&S) costs are more likely to exceed projections than to come in under their budgeted level. Controlling and reducing weapon system sustainment has proven difficult and is quickly becoming one of Naval Aviation s top priorities. Facing an estimated $3.5 billion O&S funding shortfall between Fiscal Year (FY) 2013 and FY 2019, Naval Aviation must renew its emphasis on cost-wise readiness and develop a demanding should cost perspective across the Naval Aviation Enterprise (NAE). NAVAIR s Cost Analysis Team estimates it will take a 15 percent reduction in Naval Aviation O&S costs to close this gap. An effort of this magnitude must include a dynamic O&S cost reduction strategy. This article spotlights the NAE s renewed focus on reducing O&S cost through the application of proven best practices, innovative new processes and the introduction of an advanced analytical tool set across the enterprise.