This thesis reviews the application of cost-benefit analysis (CBA) in the Department of Defense (DOD) and the software and automated tools used in these applications. The thesis focuses on the analytic capabilities of the software and tools as applied to cost-benefit analysis problems in the DOD environment. The principles of cost-benefit analysis are used to evaluate the utility of the existing software applied to DOD cost-benefit analyses. The research identifies the cost-benefit analysis automated tools used in the DOD and the regulations that apply to cost-benefit analyses in the DOD. It also lists the organizations involved in conducting CBA. By reading the list of tools and their features, readers will become aware of what is currently available in DOD to facilitate the reliability of CBA. The study also focuses on the ECONPACK software developed by the U.S. Army Corps of Engineers. ECONPACK's strengths and weaknesses are analyzed. Also, ECONPACK is used to replicate two earlier studies - one a cost-benefit analysis of retail activities at military bases, the other a cost-effectiveness study of the operational availability of the Brazilian and Argentinean A-4 fleet. The replications demonstrate that ECONPACK is designed to support cost and cost-effectiveness analyses rather than true cost-benefit analyses.

This is the first comprehensive book on Military Cost-Benefit Analysis and provides novel approaches to structuring cost-benefit and affordability analysis amidst an uncertain defense environment and cloudy fiscal prospects. Lifting the veil on military Cost-Benefit Analysis, this volume offers several new practical tools designed to guide defense investments (and divestments), combined with a selection of real-world applications. The widespread employment of Cost-Benefit Analysis offers a unique opportunity to transform legacy defense forces into efficient, effective, and accountable 21st century organizations. A synthesis of economics, statistics and decision theory, CBA is currently used in a wide range of defense applications in countries around the world: i) to shape national security strategy, ii) to set acquisition policy, and iii) to inform critical investments in people, equipment, infrastructure, services and supplies. As sovereign debt challenges squeeze national budgets, and emerging threats disrupt traditional notions of security, this volume offers valuable tools to navigate the political landscape, meet calls for fiscal accountability, and boost the effectiveness of defense investments to help guarantee future peace and stability. A valuable resource for scholars, practitioners, novices and experts, this book offers a comprehensive overview of Military Cost-Benefit Analysis and will appeal to anyone interested or involved in improving national security, and will also be of general interest to those responsible for major government programs, projects or policies.

Congress has an ongoing interest in ensuring that the 500,000 buildings and other structures owned and operated by the Department of Defense (DOD) are operated effectively in terms of cost and resource use. Section 2830 of the National Defense Authorization Act for fiscal year requires the Secretary of Defense to submit a report to the congressional defense committees on the energy-efficiency and sustainability standards used by DOD for military construction and major renovations of buildings. DOD's report must include a cost-benefit analysis, return on investment, and long-term payback for the building standards and green building certification systems, including: (A) American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 189.1-2011 for the Design of High-Performance, Green Buildings Except Low-Rise Residential. (B) ASHRAE Energy Standard 90.1-2010 for Buildings Except Low-Rise Residential. (C) Leadership in Energy and Environmental Design (LEED) Silver, Gold, and Platinum certification for green buildings, as well as the LEED Volume certification. (D) Other American National Standards Institute (ANSI) accredited standards. DOD's report to the congressional defense committees must also include a copy of DOD policy prescribing a comprehensive strategy for the pursuit of design and building standards across the department that include specific energy-efficiency standards and sustainable design attributes for military construction based on the cost-benefit analysis, return on investment, and demonstrated payback required for the aforementioned building standards and green building certification systems. Energy-Efficiency Standards and Green Building Certification Systems Used by the Department of Defense for Military Construction and Major Renovations summarizes the recommendations for energy efficiency.