Improving Visibility into Logistics Cost : Institute for Defense Analyses , September 2, , 2013
September 2, 2013
Institute for Defense Analyses
From the abstract: "Logistics, broadly defined, is a $200 billion defense portfolio. The task sponsor, Logistics and Materiel Readiness (L&MR) within the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), directed by the Institute for Defense Analyses (IDA) to review the enterprise-wide cost information it currently collects (primarily the Logistics Cost Baseline (LCB)) and make recommendations on its improvement. These data, provided by the sponsor and based on the Department of Defense budget provided to the Congress, provide a rigorous and repeatable summary of expected budget costs for the upcoming fiscal year. The LCB does not provide (and was not originally intended to provide) a programmatic view of logistics costs extending beyond the budget year. L&MR does not have the ability to systematically link its current budget-based logistics cost information to programs. It also cannot forecast demand for logistics services through the Future Years Defense Program (FYDP) period. Having this ability would ensure, for example, that depot planning is consistent with a forecast of the overall defense program. This report developed options to provide the Office of the Secretary of Defense improved visibility into logistics costs through a program view. IDA developed options to link logistics costs to force structure and operating tempo, forecast these costs through the FYDP period, and identify where further enhancements to performance measurement are required, analytically relating cost and performance to effectively conduct logistics programming."