Calculating the Cost Savings From Reducing Military Force Structure: How to Formulate the Cost Problem

Abstract

World events, such as the Gulf War and the breakup of the Soviet Union and changes in NATO, have led to dramatic changes in the defense environment and in the associated requirements for an adequate defense. These changes have motivated a far reaching reconsideration of U.S. military force structure that will lead to a major restructuring of military forces within the next few years. Proposed changes include: a major reduction in force size (i.e., a reduction in the number of military units, such as infantry battalions, aircraft squadrons, or ships of various types) along with a corresponding reorganization of force-wide support organizations and resource management systems; a realignment of the remaining units on existing bases, closing those bases that are no longer required; a reorganization of units to smaller, more mobile and flexible entities; and a change in the mix of active and reserve units. Plans to reduce the defense budget rely heavily on such changes in force structure.