Considering a Cadre Augmented Army - RAND Corporation

-213- An Operational Analysis of Cadre
bonuses would further reduce the cost savings from each cadre augmented force by about
37 percent. 134 Under the most pessimistic assumption about the size of bonuses, this
alternative could reduce the cost savings from a cadre augmented force by as much as 62
percent. 135 Nonetheless, even under the worst-case assumption, each cadre augmented force
still reduces cost savings by billions of dollars.
This option avoids some of the issues with IRR activation because the junior
personnel are volunteering to serve in cadre units rather than being called upon involuntarily.
However, like the IRR activation option, it would also require making significant changes to
DoD personnel policies. Additionally, RC personnel are generally older and of higher rank
and therefore there may be a limited supply of junior personnel to draw upon. We calculate
that 21 percent of the RC is in grades E-1 through E-4 while 44 percent of the AC and 61
percent of the IRR is in those grades. 136 Therefore, in order for the RC to be a viable source
of junior personnel to fill out cadre units, a focused effort would need to be made to recruit
additional junior personnel for the RC.
bonuses of $10,000 in 2005. (http://www.globalsecurity.org/military/library/news/2005/06/mil-050617-
arnews01.htm; accessed May 28, 2008)
134 Average long-run annual cost savings from the +6 Cadre, +9 Cadre and, +18 Cadre forces would decrease
from $4 to $2.5 billion, $6 to $3.8 billion, and $12 to $7.5 billion respectively. The average long-run savings
from the CadreMix force would decrease from $11 billion to $7 billion. If bonuses were $10,000 ($20,000), cost
savings would decrease by nine (18) percent. For each $10,000 increase in bonuses, cost savings decrease by an
additional nine percent.
135 In the worst case, average long-run annual cost savings from the +6 Cadre, +9 Cadre and, +18 Cadre forces
would decrease from $4 to $1.5 billion, $6 to $2.2 billion, and $12 to $4.4 billion respectively. The average longrun
savings from the CadreMix force would decrease from $11 billion to $4.3 billion. In the more realistic case
of $15,000 bonuses, cadre cost savings would decrease by only 39 percent.
136 Calculations based on grade breakdowns in DoD (2005). Holmes and Tan (2006) also state that Air Force
Reservists and Air National Guardsmen are generally older than their active duty counterparts. Barnes (2006)
says the same thing about the Army.