Considering a Cadre Augmented Army - RAND Corporation

-60- A Budgetary Analysis of Cadre
Figure 4.1 shows the sensitivity of the average long-run cost savings from the cadre
augmented forces analyzed in Chapter Two to the peacetime cost of cadre units. The results
for the peacetime cost savings are similar.
Figure 4.1—Sensitivity of Average Long-Run Cost Savings from Cadre Forces to
Peacetime Cadre Cost
$18
$16
Cost Savings (billions)
$14
$12
$10
$8
$6
$4
+ 6 BCTs
+ 9 BCTs
+ 18 BCTs
CadreMix
$2
$0
0% 10% 20% 30% 40% 50% 60%
Peacetime Cadre BCT Cost Relative to AC
Figure 4.1 shows that the average long-run cost savings from a cadre augmented
force decrease as the peacetime cost of a cadre unit increases. However, the cost savings
remain in the billions of dollars even when the peacetime cost of a cadre unit is higher than
that of an RC unit (28 percent) because cadre units can be used much more intensively than
RC units in wartime. Therefore, fewer units need to be maintained in peacetime. Even when
a cadre unit costs 56 percent of an AC unit, 70 a cadre augmented force still reduces average
long-run costs by $2, $3, and $7 billion annually for the six, nine, and 18 BCT expansions
____________
70 This is the cost of a cadre unit retaining all officers and NCOs in peacetime.