Download or read book A Comparison of the Fully Burdened Cost of Fuel Methodologies Used Across the Department of Defense written by Scott A. Roscoe and published by . This book was released on 2010 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis describes the various Fully Burdened Cost of Fuel (FBCF) methodologies under development across the Department of Defense. A comparison of the Air Force FBCF Calculator and the OSD (AT & L) FBCF Calculator is performed and identifies the similarities and differences between the methodologies to include an analysis of the output of each calculator. Our analysis indicates that while the methodologies used to calculate the FBCF vary among the Services, they share common underlying principles and the FBCF methodologies can produce similar results. Recommendations for follow on studies are provided.
Download or read book Estimating the Fully Burdened Cost of Fuel Using an Input ouput Model a Micro level Analysis written by Sean R. Dubbs and published by . This book was released on 2011 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2010, the Department of Defense (DoD) spent $1 3.2 billion on fuel purchases, with over 3,000 lives lost in fuel delivery operations between 2003 and 2007. To reduce both of these figures, the DoD is investing in technology to reduce fuel consumption, especially in expeditionary and forward operations. These reductions will cause cascading effects throughout the supply chain. The tools of Input-Output Analysis appear to be a natural fit for determining fuel costs throughout the supply chain and identifying the best ways to improve the efficiency of providing war-fighting capability. A model of the existing portion of the United States Marine Corps supply chain in Afghanistan was built as a proof of concept, along with six scenarios that explore different methods of reducing fuel consumption, to estimate the fuel multiplier for each component in the supply chain. This model was useful in providing insight and a lower bound on the fully burdened cost of fuel within the Afghanistan supply chain. The results of this analysis show that the impact of force protection fuel usage is not as large as previously believed. In some situations, fuel resupply through an airdrop could be a more efficient delivery method than ground transportation. Different methods of achieving reduced fuel consumption have different impacts on the fuel multiplier in the supply chain, thus affecting the short-term planning ability of the operational commander.
Download or read book Fully Burdened Cost of Fuel Using Input output Analysis written by John W. Hills and published by . This book was released on 2011 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 mandates that the Fully Burdened Cost of Fuel, including the total cost of procuring and transporting fuel, infrastructure operating costs, and the cost of force protection for the logistics tail, be applied in trade-off analyses for all Department of Defense systems that create a demand for energy. Using data from the Defense Logistics Agency Energy, this thesis builds a model of its worldwide supply chain for bulk fuels, and uses the principles of input-output analysis to calculate the total cost to deliver three fuel types to each destination in the supply chain. Although the Defense Logistics Agency Energy charges a standard price to each service for bulk fuels, these results show that they incur very different costs, ranging from less than a penny per gallon to over 70 cents per gallon, to deliver to different locations. Given the appropriate data on services' fuel distribution networks, a Department of Defense-wide extension of the Bulk Fuels Distribution Model could be used to replace the current seven-step Fully Burdened Cost of Fuel process with a single step, allowing for less complex and more accurate Fully Burdened Cost of Fuel calculations.
Download or read book Batteries on the Battlefield written by Troy O. Kiper and published by . This book was released on 2010 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to Department of Defense (DoD) and Secretary of the Navy (SeCNAv) instructions, acquisition decisions should be based on analysis that considers both the costs and benefits of different courses of action. A recent change to DoD Instruction (DODI) 5000.02; the DoD's regulations on the acquisition of new systems, specifically calls for its agencies to consider the fully burdened energy costs in all trade-offs involving costs and benefits. Defense ground, air, and maritime platforms, as well as communications and network systems, all use a variety of renewable and disposable energy sources. Past analyses conducted by the Office of the Deputy Assistant Secretary of the Army for Cost and Economics (ODASA-CE) and the Office of the Undersecretary of Defense for Acquisition Technology and Logistics, or OUSD(AT & L), have developed methodologies to calculate the fully burdened cost of fuel as delivered energy in defense systems. Whereas these previous studies did not consider other energy sources such as batteries, this thesis contributes to the DoD area of knowledge in estimating life cycle costs of systems by developing a methodology to estimate the fully burdened cost of batteries.
Download or read book Evaluating the Impact of the Fully Burdened Cost of Fuel written by and published by . This book was released on 2009 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis motivates and defines the concept of Fully Burdened Cost of Fuel (FBCF), assesses Department of the Navy Major Defense Acquisition Programs potentially impacted by FBCF estimates and applies an experimental methodology developed by OUSD(AT & L) to estimate and analyze the FBCF of a notional capability. Our analysis shows that there are potentially large variations in energy-related costs (burdens) associated with the required fuel delivery assets, the supporting infrastructure and associated manpower, and the assets providing force protection and security to the fuel delivery assets in both peacetime and operational scenarios. Recommendations for follow on studies are provided.
Download or read book Estimating the Fully Burdened Cost of Fuel for a Naval Aviation Fixed Wing Platform written by Daniel R. Truckenbrod and published by . This book was released on 2010 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis provides the background and motivation for furthering the Fully Burdened Cost of Fuel (FBCF) cost estimating methodology and calculations in the context of a naval aviation fixed wing platform. The FBCF contribution to Total Ownership Cost in the Analysis of Alternatives for Major Defense Acquisition Programs requires steady advancement to meet an October 2011 implementation deadline. Applying OSD guidance and calculator mathematical process facilitates comparison of the additional costs to deliver and protect fuel demanded by the F/A-18E/F aircraft with those added costs for a ship platform. Total costs throughout a realistic operation and support life cycle and applying a notional scenario to the newest calculator demonstrate a range of cost estimating methods. Our conclusions support previous analysis that air refueling contributes significantly to logistics support costs and that investment in fuel conservation technologies and platform endurance can be a strategic opportunity for the Department of Defense and the Department of the Navy. The aircraft FBCF is multiple times higher than the fuel commodity price as compared to the FBCF for ships, which is only fractionally higher than the fuel commodity price. Assured Delivery Price of supplied fuel calculations are complicated for platforms that require multiple refueling support assets.
Download or read book Bulk Fuel Pricing written by U.s. Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-07-27 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: " DOD purchases bulk fuel and sells it to customers, including the military services. Each fiscal year, DOD sets a standard price for budgeting purposes, endeavoring to closely approximate the price it will pay when it buys the fuel almost a year later. If this price is different than the standard price, DOD may need to take actions to manage its working capital funds-funds used to purchase fuel and other commodities that are reimbursed through sales. Senate Report 113-44, accompanying a bill for the National Defense Authorization Act for FY 2014, mandated GAO to review DOD's approach for establishing its bulk fuel pricing. This report discusses, among other things, (1) how estimated bulk fuel costs have compared to actual costs since FY 2009 and the factors that have contributed to any differences; and (2) the extent to which DOD has considered options for adjusting its approach to estimating bulk fuel costs and managing working capital funds in light of any differences between estimated and actual fuel costs. GAO compared estimated and actual fuel costs for FY 2009 through 2013 and analyzed DOD actions to manage working capital funds. "
Download or read book Department of Defense Fuel Spending Supply Acquisition and Policy written by Anthony Andrews and published by DIANE Publishing. This book was released on 2010-11 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: DoD fuel consumption varies from year to year in response to changes in mission and the tempo of operations. DoD may consume upwards of 1% of the petroleum products refined in the U.S. annually. The majority of DoD¿s bulk fuel purchases are for jet fuel, which has ranged as high as 101 million barrels annually in the past decade. The U.S. refining industry has been supplying 50% of DoD¿s jet fuel. Contents of this report: (1) Background; (2) Fuel Purchases: DoD Fuel Cost vs. Commercial Fuel Price; (3) Refining, Suppliers, and the Crude Oil Supply: Crude Oil Supply; Refining; Sulfur Reg¿s.; Greenhouse Gas Reg¿n.; U.S. Refiners Supplying DoD Fuel; Refinery Jet Fuel Yield and Supply; (4) Fuel Acquisition: Acquisition Reg¿s.; Alternative Fuels. Illustrations.
Download or read book Department of Defense Fuel Costs in Iraq written by and published by . This book was released on 2008 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the invasion of Iraq in 2003, the average price of fuels purchased for military operations in Iraq has steadily increased. The disparity between the higher price of fuel suppled to the United States Central Command compared to Iraq's civilian population has been a point of contention. Several factors contribute to the disparity, including the different types of fuel used by the military compared to Iraqi civilians, the Iraqi government's price subsidies, and the level pricing that the DOD's Defense Logistics Agency charges for military customers around the world. The Iraqi government has been pressured to reduce its fuel subsidy and black market fuel prices remain higher than the official subsidized price.
Download or read book Bulk Fuel Pricing written by Asif A. Khan and published by . This book was released on 2014-09-13 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Defense (DOD) purchases bulk fuel and sells it to customers, including the military services. Each fiscal year, DOD sets a standard price for budgeting purposes, tryng to closely approximate the price it will pay when it buys the fuel almost a year later. If this price is different than the standard price, DOD may need to take actions to manage its working capital funds -- funds used to purchase fuel and other commodities that are reimbursed through sales. This report discusses, among other things, (1) how estimated bulk fuel costs have compared to actual costs since FY 2009 and the factors that have contributed to any differences; and (2) the extent to which DOD has considered options for adjusting its approach to estimating bulk fuel costs and managing working capital funds in light of any differences between estimated and actual fuel costs. Tables and figures. This is a print on demand report.
Download or read book Department of Defense Energy and Logistics written by Paul C. Tisa and published by . This book was released on 2016 with total page 303 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Every year the DoD spends billions satisfying its large petroleum demand. This spending is highly sensitive to uncontrollable and poorly understood market forces. Additionally, while some stakeholders may not prioritize its monetary cost and risk, energy is fundamentally coupled to other critical factors. Energy, operational capability, and logistics are heavily intertwined and dependent on uncertain security environment and technology futures. These components and their relationships are less understood. Without bitter characterization, future capabilities may be significantly limited by present-day acquisition decisions. One attempt to demonstrate these costs and risks to decision makers has been through a metric known as the Fully Burdened Cost of Energy (FBCE). FBCE is defined as the commodity price for fuel plus many of these hidden costs. The metric encouraged a valuable conversation and is still required by law. However, most FBCE development stopped before the lessons from that conversation were incorporated. Current implementation is easy to employ by creates little value. Properly characterizing the costs and risks of energy and putting them in a useful tradespace requires a new framework. This research aims to highlight energy's complex role in many aspects of military operations, the critical need to incorporate it in decisions, and a novel framework to do so. It is broken into five parts. The first describes the motivation behind FBCE, the limits of current implementation, and outlines a new framework that aids decisions. Respectively, the second, third, and fourth present a historic analysis of the connections between military capabilities and energy, analyze the recent evolution of this conversation within DoD, and pull the historic analysis into a revised framework. The final part quantifies the potential impacts of deeply uncertain futures and technological development and introduces an expanded framework that brings capability, energy, and their uncertainty into the same tradespace. The work presented is intended to inform better policies and investment decisions for military acquisitions. The discussion highlights areas within the DoD's understanding of energy that could improve or whose development has faltered. The new metric discussed allows the DoD to better manage and plan for long-term energy-related costs and risk"--Abstract.
Download or read book Defense Logistics written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-07 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Defense (DOD) Defense Working Capital Fund was used to buy $70 billion in commodities in fiscal year 2001. This amount is estimated to grow to $75 billion for fiscal year 2003. The department's financial management regulation states that fund activities will operate in a business-like fashion and incorporate full costs in determining the pricing of their products. The National Defense Authorization Act for Fiscal year 2001 requires that GAO review the working capital fund activities to identify any potential changes in current management processes or policies that would result in a more efficient and economical operation. The act also requires that GAO review the Defense Logistics Agency's (DLA) efficiency, effectiveness, and flexibility of operational practices and identify ways to improve services. One such DLA activity, the Defense Energy Support Center, sold $4.7 billion of various petroleum-related products to the military services in fiscal year 2001. DOD's fuel prices have not reflected the full cost of fuel as envisioned in the working capital fund concept because cash movements to the fund balance and surcharge inaccuracies have affected the stabilized annual fuel prices. Over $4 billion was moved into and out of the working capital fund from fiscal year 1993 to 2002. These adjustments affected the extent to which subsequent years' prices reflected the full cost of fuel. In addition, the surcharges did not accurately account for fuel-related costs as required by DOD's Financial Management Regulation.
Download or read book Bulk Fuel Pricing written by and published by . This book was released on 2014 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: DOD purchases bulk fuel and sells it to customers, including the military services. Each fiscal year, DOD sets a standard price for budgeting purposes, endeavoring to closely approximate the price it will pay when it buys the fuel almost a year later. If this price is different than the standard price, DOD may need to take actions to manage its working capital funds -- funds used to purchase fuel and other commodities that are reimbursed through sales. Senate Report 113-44, accompanying a bill for the National Defense Authorization Act for FY 2014, mandated GAO to review DOD's approach for establishing its bulk fuel pricing. This report discusses, among other things, (1) how estimated bulk fuel costs have compared to actual costs since FY 2009 and the factors that have contributed to any differences; and (2) the extent to which DOD has considered options for adjusting its approach to estimating bulk fuel costs and managing working capital funds in light of any differences between estimated and actual fuel costs. GAO compared estimated and actual fuel costs for FY 2009 through 2013 and analyzed DOD actions to manage working capital funds.
Download or read book Is Weapon System Cost Growth Increasing written by Obaid Younossi and published by Rand Corporation. This book was released on 2007 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent decades, there have been numerous attempts to rein in the cost growth of U.S. Department of Defense (DoD) acquisition programs. Cost growth is the ratio of the cost estimate reported in a program's final Selected Acquisition Report (SAR) and the cost-estimate baseline reported in a prior SAR issued at a particular milestone. Drawing on prior RAND research, new analyses of completed and ongoing weapon system programs, and data drawn from SARs, this study addresses the following questions: What is the cost growth of DoD weapon systems? What has been the trend of cost growth over the past three decades? To address the magnitude of cost growth, it examines cost growth in completed programs; to evaluate the cost growth trend over time, it provides additional analysis of a selection of ongoing programs. This sample of ongoing programs permits a look at growth trends in the more recent past. Changes in the mix of system types over time and dollar-weighted analysis were also considered because earlier studies have suggested that cost growth varies by program type and the cost of the program. The findings suggest that development cost growth over the past three decades has remained high and without any significant improvement.
Download or read book Department of Defense Fuel Costs in Iraq written by and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Several factors contribute to the disparity, including the different types of fuel used by the military compared to Iraqi civilians, the Iraqi government's price subsidies, and the level pricing that the DOD's Defense Logistics Agency charges for. [...] For example, a military unit in Iraq pays the same price for jet fuel (JP-8) as a military unit stationed in most other parts of the world.2 Fuels purchased by the DESC include jet, diesel, motor and aviation gasoline. [...] In Iraq, the breakdown of petroleum used by DOD in FY2007 was 81.5% jet fuel, 15.8% diesel, and 2.6% gasoline.4 In FY2007, the DOD's average cost for fuel ranged from $2.00 a gallon for diesel to $2.05 for JP-8 (Table 1 and Figure 1). [...] DOD Fuel Costs in Central Command Area of Responsibility The DESC reports buying fuel used in support of Central Command (CENTCOM) Area of Responsibility (AOR), which includes Operation Iraqi Freedom, primarily from five suppliers (Table 2).6 The contracts for fuel contain price escalation provisions that increase or decrease the contract award prices based on fluctuations occurring in the regiona [...] Prices range from $159 - $194 a day, depending on the size of the truck and the type of fuel being transported.
Download or read book DOD Bulk Fuel written by United States. General Accounting Office and published by . This book was released on 1996 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dynamic Pricing Possibilities in the Purchase of Bulk Fuel for the Department of Defense written by Kenneth Finley and published by . This book was released on 2001-12-01 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: The conclusion of the twentieth century and the beginning of the twenty-first century has seen a tremendous explosion in the use of Information Technology (IT) in the business world. One of the latest IT ventures has combined the centuries old auction marketplace Dynamic Pricing mechanism with today's nearly instant communications in the IT environment. The result has been the development of price auctions for products and services via the Internet. United Airlines held a Jet-A fuel reverse auction on February 8, 2001. The auction was for 140,350,000 gallons of Jet-A fuel for delivery to 10 airports and four pipeline terminals. Defense Energy Support Center (DESC) purchases all fuel for the Department of Defense (DoD). DESC's fuel purchase program is similar to United Airlines. To determine the lowest overall laid-in cost for large purchase programs the following must be considered: * Multiple offers/ sources for each product (1) Multiple requiring locations/destinations *Both FOB (2) Multiple distribution cost components and opt ions This research explores the possibility of using Dynamic Pricing via online auctions to purchase bulk fuel for DoD in the same manner as United Airlines.
