Considering a Cadre Augmented Army - RAND Corporation
Considering a Cadre Augmented Army - RAND Corporation Considering a Cadre Augmented Army - RAND Corporation
-240- An Operational Analysis of Cadre Figure B.1—Annual Total Compensation by Grade Pay Grade Annual Total Compensation O-1 $69,362 O-2 $78,951 O-3 $99,614 O-4 $112,185 O-5 $123,333 O-6 $141,394 W-1 $78,970 W-2 $85,783 W-3 $99,977 W-4 $108,756 W-5 $128,629 E-1 $31,041 E-2 $34,381 E-3 $36,205 E-4 $41,931 E-5 $51,489 E-6 $61,922 E-7 $71,722 E-8 $79,688 E-9 $94,888 To calculate the cost of a cadre unit relative to an AC unit, we began by multiplying the number of soldiers in each grade by their compensation shown in Figure B.1 and summed the results. We did this for an AC unit and for each cadre structure. Then, we calculated the ratio of the total personnel cost of each type of cadre unit to the total personnel cost of an AC unit. Figure B.2 shows the relative cost calculation for the cadre unit retaining all officers and NCOs.
-241- An Operational Analysis of Cadre Figure B.2—Relative Cost Calculation for All Officers and NCO Cadre Unit Pay Grade Per Soldier AC BCT Cost AC Cadre BCT Cadre BCT Cost Cadre OFFICERS O-1 and O-2 $74,157 129 $9,566,253 100% 129 $9,566,253 O-3 $99,614 113 $11,256,382 100% 113 $11,256,382 O-4 $112,185 36 $4,038,660 100% 36 $4,038,660 O-5 $123,333 9 $1,109,997 100% 9 $1,109,997 O-6 $141,394 2 $282,788 100% 2 $282,788 CW1 & CW2 $82,377 23 $1,894,671 100% 23 $1,894,671 CW3 $99,977 5 $499,885 100% 5 $499,885 CW4 $108,756 2 $217,512 100% 2 $217,512 CW5 $128,629 0 $0 100% 0 $0 ENLISTED E-1 through E-3 $33,876 858 $29,065,608 0% 0 $0 E-4 $41,931 1124 $47,130,444 0% 0 $0 NCOs E-5 $51,489 609 $31,356,801 100% 609 $31,356,801 E-6 $61,922 343 $21,239,246 100% 343 $21,239,246 E-7 $71,722 160 $11,475,520 100% 160 $11,475,520 E-8 $79,688 44 $3,506,272 100% 44 $3,506,272 E-9 $94,888 12 $1,138,656 100% 12 $1,138,656 SUMMARY Total - 3469 $173,778,695 43% 1487 $97,582,643 Cost of Cadre BCT Relative to AC BCT = 56% We calculated that the annual personnel cost of an AC BCT was $173,778,695 and that the annual personnel cost of a cadre unit retaining all officers and NCOs was $97,582,643. Using these two values, we calculate the relative cost of this cadre unit to be 56 percent of an AC unit. This calculation was repeated for each of the cadre configurations discussed in Chapter Two of this paper. B.1.3—Validity of Relative Personnel Costs In the previous section, we calculated the relative cost of a soldier in each grade based on data from Department of the Army (2007a). To validate these calculations, we compared the rate of increase in compensation in our calculation to that calculated in CBO (2007b) for enlisted personnel. 168 Figure B.3 shows the percentage increase in compensation for enlisted soldiers in each pay grade. ____________ 168 CBO (2007b) only calculates average compensation by grade for enlisted personnel, not officers.
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-241- An Operational Analysis of <strong>Cadre</strong><br />
Figure B.2—Relative Cost Calculation for All Officers and NCO <strong>Cadre</strong> Unit<br />
Pay Grade Per Soldier AC BCT Cost AC <strong>Cadre</strong> BCT <strong>Cadre</strong> BCT Cost <strong>Cadre</strong><br />
OFFICERS O-1 and O-2 $74,157 129 $9,566,253 100% 129 $9,566,253<br />
O-3 $99,614 113 $11,256,382 100% 113 $11,256,382<br />
O-4 $112,185 36 $4,038,660 100% 36 $4,038,660<br />
O-5 $123,333 9 $1,109,997 100% 9 $1,109,997<br />
O-6 $141,394 2 $282,788 100% 2 $282,788<br />
CW1 & CW2 $82,377 23 $1,894,671 100% 23 $1,894,671<br />
CW3 $99,977 5 $499,885 100% 5 $499,885<br />
CW4 $108,756 2 $217,512 100% 2 $217,512<br />
CW5 $128,629 0 $0 100% 0 $0<br />
ENLISTED E-1 through E-3 $33,876 858 $29,065,608 0% 0 $0<br />
E-4 $41,931 1124 $47,130,444 0% 0 $0<br />
NCOs E-5 $51,489 609 $31,356,801 100% 609 $31,356,801<br />
E-6 $61,922 343 $21,239,246 100% 343 $21,239,246<br />
E-7 $71,722 160 $11,475,520 100% 160 $11,475,520<br />
E-8 $79,688 44 $3,506,272 100% 44 $3,506,272<br />
E-9 $94,888 12 $1,138,656 100% 12 $1,138,656<br />
SUMMARY Total - 3469 $173,778,695 43% 1487 $97,582,643<br />
Cost of <strong>Cadre</strong> BCT Relative to AC BCT = 56%<br />
We calculated that the annual personnel cost of an AC BCT was $173,778,695 and<br />
that the annual personnel cost of a cadre unit retaining all officers and NCOs was<br />
$97,582,643. Using these two values, we calculate the relative cost of this cadre unit to be 56<br />
percent of an AC unit. This calculation was repeated for each of the cadre configurations<br />
discussed in Chapter Two of this paper.<br />
B.1.3—Validity of Relative Personnel Costs<br />
In the previous section, we calculated the relative cost of a soldier in each grade<br />
based on data from Department of the <strong>Army</strong> (2007a). To validate these calculations, we<br />
compared the rate of increase in compensation in our calculation to that calculated in CBO<br />
(2007b) for enlisted personnel. 168 Figure B.3 shows the percentage increase in compensation<br />
for enlisted soldiers in each pay grade.<br />
____________<br />
168 CBO (2007b) only calculates average compensation by grade for enlisted personnel, not officers.