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The Effects of Aging on the Costs of Operating and Maintaining Military Equipment [i] (August 2001)

handle is hein.congrec/cbo0687 and id is 1 raw text is: THE EFFECTS OF AGING ON THE COSTS OF OPERATING AND MAINTAINING MILITARY EQUIPMENT August 2001 NOTES Unless otherwise noted, all dollar amounts referred to in this paper are in constant fiscal year 2000 dollars, and all years are fiscal years. Unless otherwise indicated, all references to Navy aircraft also include Marine Corps and Navy Reserve aircraft. The cover photo depicts a C-130 undergoing extensive depot maintenance at Hill Air Force Base, Utah. PREFACE M any military leaders and defense analysts believe that increases in the costs of operating and maintaining aging military equipment have created a budgetary crisis in the Department of Defense. Yet no one has provided clear and comprehensive information on those costs. Nevertheless, the effects of age are likely to become increasingly important because, even with planned purchases of new equipment, most major military weapon systems will increase in average age during the coming decade. The Senate Budget Committee asked the Congressional Budget Office (CBO) to analyze defense spending on operation and maintenance (O&M). As part of CBO's response to that request, this paper examines the extent to which aging equipment has contributed to the overall growth in O&M spending, reviews the available literature on the effects of aging, and briefly describes some approaches to address the costs associated with aging equipment. Gregory T. Kiley of CBO's National Security Division prepared the report under the supervision of Christopher Jehn and Deborah Clay-Mendez. Eric J. Labs thoroughly reviewed the manuscript before publication. Arlene Holen, Jo Ann Vines, Robert MeClelland, and Zachary Selden of CBO and Thomas McNaugher of the RAND Corporation provided helpful comments. Billy Trimble of CBO and Mike Aguilar (formerly of CBO) provided valuable research assistance. John Skeen edited the manuscript, and Christine Bogusz proofread it. Cindy Cleveland prepared it for publication. Lenny Skutnik produced the printed copies, and Annette Kalicki prepared the electronic versions for CBO's Web site. Dan L. Crippen Director

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