Considering a Cadre Augmented Army - RAND Corporation

Considering a Cadre Augmented Army - RAND Corporation Considering a Cadre Augmented Army - RAND Corporation

07.06.2014 Views

-62- A Budgetary Analysis of Cadre cost of an RC unit drops below eight percent of an AC unit, then trading RC units for cadre units increases costs. However, it is unlikely that the cost of an RC unit is as low as eight percent since the relative cost of an RC unit calculated from only basic pay differences is 16 percent of an AC BCT. 73 Over a range of estimates for the cost of an RC BCT, trading RC BCTs for cadre BCTs significantly reduces annual costs. However, the peacetime cost of RC and cadre BCTs are only one piece of analyzing this tradeoff. The other piece is calculating the number of units needed to sustain one deployed unit from each force. This is calculated based on the rotation guidance, which we discuss in the next chapter. ____________ 73 Klerman et al (2008)

-63- A Budgetary Analysis of Cadre 5. WILLINGNESS TO STRESS THE AC WHILE CADRE UNITS MOBILIZE The analyses in Chapter Two assume that the DoD would be willing to allow some AC units to break rotation guidance while cadre units mobilize. The willingness of the DoD to place stress on the AC while cadre units mobilize affects the attractiveness of a cadre augmented force. The less willing the DoD is to let some AC units break rotation guidance, the more reserve units needed in the force. This reduces the cost savings from a cadre augmented force. It is unclear how willing the DoD will be to deploy AC units with less than two years at home in the future. This chapter calculates the cost savings from a cadre augmented force for different assumptions about the willingness of the DoD to allow some AC units to break rotation guidance. We begin by assuming that the DoD does not allow any unit to break rotation guidance and then relax this assumption incrementally. 5.1—STRICT ADHERENCE TO ROTATION GUIDANCE We start this analysis by calculating the cost savings from a cadre augmented force when all units are required to strictly adhere to rotation guidance. This assumption creates a worst-case scenario for a cadre augmented force because it requires the largest number of RC units in peacetime. We assume that the force is built ex-ante so that no unit will break rotation guidance in wartime. In order to perform this analysis, we must choose one of the cadre augmented forces analyzed in Chapter Two to use as an example. In this section, and those that follow, we will analyze the CadreMix force. 74 The qualitative results for the other cadre augmented forces examined in Chapter Two will be similar. The CadreMix force has 35 AC BCTs and 16 cadre ____________ 74 The CadreMix force was designed to sustain the same rotation as the 2011 force (19 BCTs).

-62- A Budgetary Analysis of <strong>Cadre</strong><br />

cost of an RC unit drops below eight percent of an AC unit, then trading RC units for cadre<br />

units increases costs. However, it is unlikely that the cost of an RC unit is as low as eight<br />

percent since the relative cost of an RC unit calculated from only basic pay differences is 16<br />

percent of an AC BCT. 73<br />

Over a range of estimates for the cost of an RC BCT, trading RC BCTs for cadre<br />

BCTs significantly reduces annual costs. However, the peacetime cost of RC and cadre<br />

BCTs are only one piece of analyzing this tradeoff. The other piece is calculating the number<br />

of units needed to sustain one deployed unit from each force. This is calculated based on the<br />

rotation guidance, which we discuss in the next chapter.<br />

____________<br />

73 Klerman et al (2008)

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