Considering a Cadre Augmented Army - RAND Corporation

-237- An Operational Analysis of Cadre
APPENDIX B— THE PEACETIME COST OF A CADRE BCT
The second chapter of this paper estimates the cost of various peacetime cadre unit
configurations. There are two main components to the peacetime cost of a cadre BCT: the
direct costs of a unit and the percentage of time that cadre leaders are involved in duties
directly related to the cadre unit. This appendix shows how we calculate the peacetime cost
of a cadre BCT relative to an AC BCT under varying assumptions about cadre unit structure.
The first section of this appendix shows how we calculate the direct cost of a cadre unit
relative to an AC unit. The second section shows how we determine the relative cost of
cadre units with different peacetime duties.
B.1—CADRE UNIT RELATIVE COST
In Chapter Two of this paper, we outlined five potential peacetime structures for
cadre units and calculated the cost of each relative to an AC unit. This section shows how
we calculated these costs.
B.1.1—Assuming Unit Costs are Proportional to Personnel Costs
In this paper, we assume that the cost of a cadre BCT relative to an AC BCT is
proportional to the percentage difference in personnel costs of the two units. This implicitly
assumes that the percentage difference in all other costs (operations and maintenance, etc.) is
proportional to the percentage difference in personnel costs. Although this assumption is
questionable, there is some evidence that it might be good enough for the purpose of
developing a relative cost estimate. Bailey (1991) estimates the unit cost components for a