Surface Ship Shore Intermediate Maintenance Activity Costs Under Defense BusinessOperations Fund Regulations

摘要

The thesis develops a FY 95 manday rate for a Shore Intermediate MaintenanceActivity (SIMA) using Department of Defense Financial Management Regulations (DoD FMR) for Defense Business Operations Fund (DBOF) Operations in support of Regional Maintenance goals. The manday rate calculated, $694.64, is compared with Naval Shipyard (NSY) composite manday rates for FY 95. The NSY manday rates ranged from a high of $661.80 to a low of $408.83 with an average of $513.35. The comparison is of the costs associated with levels of effort, without adjustments for differing productivities or efficiencies. Some deviations from DoD FMR and adjustments to NSY manday rates were required in order to make SIMA and NSY manday rates directly comparable. The thesis also shows that the majority of the costs associated with the operation of a SIMA are fixed; $76,324,797 of the $116,288,974 in total operating costs were fixed costs. Of the $39,964,177 identified as variable costs, $36,255,321 are unavoidable cost--the costs of materials and services to complete necessary repairs or maintenance which would be incurred by the Navy regardless of where the work was performed. The fixed cost nature of operating a SIMA contributes to the higher manday rate. Computations using hourly labor costs for production efforts resulted in a manday rate of $572.15 and identified $14,922,797 as the cost of maintaining a fixed production labor force. Using hourly labor costs for support efforts should provide additional reductions in the manday rate.