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Developing a United States Marine Corps Organizational and Intermediate Level Maintenance Performance Cost Model

Abstract : Headquarters Marine Corps (HQMC) Installations and Logistics (I&L) is concerned over the expenditures on organizational and intermediate (O&I)-level maintenance repairables and consumables, and their effects on future budget requests. Additionally, determining the effect of O&I cost-drivers, such as inventory, operating tempo (OPTEMPO), equipment age, procurement costs, etc., has not been thoroughly examined. Developing a cost-estimating relationship with maintenance costs, these cost-drivers variables can help explain the factors that affect costs and why they vary. Prior studies have analyzed maintenance costs and have suggested various prediction methods. The Marine Corps has yet to implement a quantitative forecasting method to predict maintenance costs. As such, this thesis analyzes and suggests methods to predict future budgets at the Marine Force (MARFOR) level using the Operating and Support (O&S) Cost Estimating Guide dated October 2007 as a reference for developing cost-estimating relationships. This thesis focuses on the following three MARFORs: (1) Marine Forces Pacific, (2) Marine Forces Command, and (3) Marine Forces Reserve. This thesis creates a performance-pricing model for the USMC planners to use as an analytical tool to support sustainment budgetary requirements in the Planning, Programming, Budgeting, and Execution (PPBE) process. This thesis continues the work of LCDR Patrick Kelly.