Operating

Tempo and Training

($19.0 billion)

Facilities

($18.1 billion)

Maintenance

($11.3 billion)

Not Modeled

($26.3 billion)

Miscellaneous

($4.1 billion)

CONGRESS OF THE UNITED STATES

CONGRESSIONAL BUDGET OFFICE

CBO

Models Used by the 

Military Services to 

Develop Budgets for 

Activities Associated 

with Operational 

Readiness

FEBRUARY 2012
Pub. No. 4187
The Congress of the United States O Congressional Budget Office

CBO

Models Used by the Military Services to 

Develop Budgets for Activities Associated with 

Operational Readiness

February 2012
CBO

Notes

Unless otherwise indicated, all years referred to in this study are fiscal years, and all dollar amounts are in 2012 Numbers in the text and tables may not add up to totals because of rounding.The cover shows the following images (clockwise from bottom right): F/A-18F Super Hornet, photo by Communication Specialist 1st Class Jose Lopez Jr.; maintenance soldiers from Troop E, 2nd Squadron, 6th CavRegiment, photo by Sgt. 1st Class Tyrone C. Marshall Jr., Task Force Wings Public Affairs; Marines in the MarCorps Air Station Futenma mess hall, photo by Lance Cpl. Courtney G. White; and the 50th Anniversary Air Sergeants Association forum in San Antonio, Texas, photo by Tech. Sgt. Rey Ramon.
Preface

CBO

The military services (the Army, Navy, Air Force, and Marine Corps) use modeling techniques to inform parts their annual budget requests. As directed by the Congress in the 2011 National Defense Authorization Act, thiCongressional Budget Office (CBO) report provides information on the models used to develop budgets for acthat help to achieve operational readiness. In consultation with staff from the House and Senate Armed ServiceCommittees, CBO focused on identifying models used in the operating forces category within the services’ opeand maintenance accounts. In keeping with CBO’s mandate to provide objective, impartial analysis, this report no recommendations. The report was prepared by Adebayo Adedeji, Daniel Frisk, and Derek Trunkey of CBO’s National Security Diunder the supervision of Matthew Goldberg and David Mosher. CBO staff members Elizabeth Cove Delisle, JaWheelock, and William Ma provided helpful comments. Jeanine Rees edited the document, with assistance from John Skeen. Maureen Costantino designed the cover, and Jeanine Rees prepared the document for publication. Monte Ruffin produced the initial printed copies, anLinda Schimmel handled the print distribution. The report is available on the agency’s Web site (www.cbo.gov)

Douglas W. Elmendorf 

Director

February 2012

CBO

Exhibit 

List of Exhibits

1. Modeled and Unmodeled Activities Within the Military Services’ Operation and Maintenance Budget 2. Selected Methods Used by the Services to Develop Their Budgets for Operating Forces 3. Modeling of Budget Requests for Operating Forces, by Service and Function 4. Modeled Percentage of Operating Forces Budgets, by Service and Function 

Models Used by Each Service

5. Modeled Amounts of the Navy’s Budget Request for Operating Forces 6. Modeled Amounts of the Army’s Budget Request for Operating Forces 7. Modeled Amounts of the Air Force’s Budget Request for Operating Forces 8. Modeled Amounts of the Marine Corps’ Budget Request for Operating Forces 

Models for Operating Tempo and Training Functions

9. Modeling of Budgets for Operating Tempo and Training, by Service 

10. The Navy’s Fleet Response Plan Cycle for Surface Combatants 11. Length of Fleet Response Plan Cycles for Selected Navy Units 12. The Navy’s Ship Operations Model 13. The Methodological Approach of the Navy and Marine Corps’ Flying Hour Requirements Model 14. Components of Cost per Flying Hour in the Navy and Marine Corps’ Flying Hour Requirements Model 15. The Army’s Force Generation Cycle 
CBO

Exhibit 

LIST OF EXHIBITS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

16. The Army’s Model for Calculating Direct Costs for Unit Operating Tempo and Training 17. The Army’s Model for Calculating Indirect Costs for Unit Operating Tempo and Training 18. The Air Force’s Flying Hours Model 

Models for Facilities and Maintenance Functions

19. Modeling of Budgets for Facilities and Maintenance, by Service 20. The Navy’s and Army’s Base Operating Support Models 21. OSD’s Facilities Sustainment Model for All Services 22. Modeling of Depot-Level Maintenance by All Services 
CBO

Models Used by the Military Services to Develop Budg

Activities Associated with Operational Readines

When developing their annual budgets, the military services (the Army, Navy, Air Force, and Marine Corps) use models to estimate the quantities and costs of resources needed to carry out their missions.1 As directed by the Congress in the 2011 

National Defense Authorization Act (Public Law 111-383, sec. 356), the Congressional Budget Office (CBO) has examined the modeling techniques the military services use to inform parts of their annual budget requests, specifically, the models used “to determine funding levels for operational readiness requirements.” Operational readiness refers to the services’ ability to conduct military operations and meet the demands of the National Military Strategy—an annual report by the Chairman of the Joint Chiefs of Staff that outlines how the military will meet the strategic goals of the President and the Congress (and required under 10 U.S.C. section 153). The Department of Defense’s (DoD’s) total budget request for fiscal year 2012 was $671 billion, of which $554 billion was for the base budget (which 

funds the department’s normal activities) and $118 billion was for funding overseas contingency operations in Afghanistan, Iraq, and elsewhere.2

CBO focused its analysis on the operating forces portion of services’ base budgets. In the 2012 request, that portion of the services’ base budgets totaled $79 billion. The budget for operating forces is the part of the operation and maintenance (O&M) budget most closely linked to operational readiness. Funds provided for operating forces pay for the training of combat and support units, as well as the operation of most service installations. CBO found that:

B Models informed about $53 billion, or twothirds, of the $79 billion request for funding for 

operating forces in 2012;

B Depending on the military service, models 

informed anywhere from roughly 45 percent to roughly 80 percent of the total request for funding for operating forces; and

B Within the categor

the services used malmost all of their maintenance of eqdepot level, and thdegree to which ththeir requests for ftions and training aand repairs at facil

CBO’s Analytic To fulfill the Congresthe operation and mathe military services. Tto just over one-third pays for most of the dning the military, incl

fuel and power, operaequipment, and civili

O&M budget also paand activities such as Accounting Service anProgram.4 CBO exclu

of the O&M budget 

1. The services develop their budgets using the planning, programming, budgeting, and execution process. That 

process is a mechanism for preparing the Department of Defense’s budget request for the Congress as well as for “creating a long-range financial plan that relates defense spending to assessments of potential military threats, as summarized in the President’s National Security Strategy and the Quadrennial Defense Review.” For details, see http://comptroller.defense.gov/legislativeprocess.html.

2. CBO’s analysis in this report is based on DoD’s submission requesting its budget for fiscal year 2012. The 

document providing the subsequent funding—title II of the Department of Defense Appropriations Act, 2012 (Division A of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2012, P.L. 112-74)—contains insufficient detail for analysis. For example, the law gives the total appropriation amounts for operation and maintenance by military service but offers no additional detail on the constituent budget activities and subactivites.

3. The remainder of the 

personnel, which reprebudget; procurement, total; and research, dev(RDT&E), military cowhich together accoun
CBO

INTRODUCTION MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

Within the services’ O&M budgets, CBO concentrated on the category covering operating forces, labeled in budget justification materials as budget activity 01.5 The budget for operating forces is the 

largest piece of O&M, making up about twothirds of the services’ O&M costs (excluding Defense-wide O&M funding). CBO considered only the components of the base budget used for active-duty forces and not the components used for the National Guard and reserves.Because of the breadth of the O&M budget, CBO did not attempt to independently identify models used in the formation of budget requests regarding operating forces. Instead, CBO relied on the services themselves to identify and characterize any models used for that purpose. As a result, this analysis omits any models that the services did not report. In addition, because the services were not able to identify any specific models used at lower organizational levels, CBO included only models that are used at the headquarters levels of the services. Therefore, although the services might build some budget requests by aggregating the results of models used at organizational levels below headquarters, such as individual commands or installations, such models do not appear in this analysis. Furthermore, CBO did not compare, 

audit, or validate the services’ models or attempt to identify any deficiencies in them.6 In many cases, 

the methodologies are sufficiently complex and data-intensive that a thorough analysis would require a separate study for each major model. The large assortment of activities covered in the O&M budget leads to a variety of budgeting methods—including modeling—across the services and across specific activities. For the purposes of this report, CBO defines a model as a set of mathematical relationships or similar logical expressions that link the amount of certain activities, such as training and maintenance, to the cost of those activities. For example, military training policy dictates the number of training hours that a pilot must fly in order to be ready to perform various tasks. Budget models for flying hours calculate the quantities of fuel, spare parts, and other resources required per hour of flight, and then apply historical cost factors to each of those resources to estimate the total cost per flying hour. In this report, CBO does not consider simple projections of historical budgets—which often involve simply applying inflation factors (or other assumed scaling factors) to the prior year’s budget—to be models. 

CBO attempted to linspecific budgetary lingroups (SAGs), within cases, a model is used for a single SAG, alth(such as the Army’s trinform the budget reqCBO classified the SAmodels into four grouactivity funded: operatraining, facilities, maneous.7 The optempo 

units’ training activitiNavy ships and flying tion units.8 The facili

day-to-day operations to facilities. The maindepot-level maintenanweapon systems. CBO miscellaneous any SAto optempo and trainmaintenance.

4. Agencies and activities within the Department of Defense 

that are outside of the military services are contained within the Defense-wide budget.

5. There are four budget activities in the services’ O&M 

budgets: budget activity 01 is operating forces, budget activity 02 is mobilization, budget activity 03 is training and recruiting, and budget activity 04 is administration and servicewide activities. 

6. In 2003, the Navy formally instituted a process to review 

and evaluate its models used to develop budget requests. That process involves verification (whether the mathematical equations for representing processes include all relevant cost components and are correctly implemented in software algorithms), validation (whether outputs from the model accurately represent reality), and accreditation (whether the model meets established criteria and is certified as useful for a specified purpose). See Chief of Naval Operations Instruction OPNAVINST 5200.35, 

October 26, 2006, for more details.

7. DoD adopted the phr

the pace of operations as aircraft flying hours mon in the military, thSee Jim Garamone, “OMean,” American Forc

More recently, DoD htempo,” still shortened Defense Dictionary of MPublication 1-02, Novthrough October 15, 2

8. Actual military operat

here because they are fnot through the base b
CBO

INTRODUCTION MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO’s FindingsCBO found that the share of the budget requests for operating forces in 2012 that was informed by models varied considerably across the services, from about 45 percent to about 80 percent. In total, models informed roughly two-thirds, or $53 billion, of the $79 billion in that portion of the services’ base budget requests. The services handle the different types of SAGs in different ways:B To estimate costs for optempo and training, all 

four services model some portion of their requests for funding. For 2012, the Air Force’s modeled portion of that function was the smallest, 41 percent, and the Army’s was the largest, 100 percent. The Navy and the Marine Corps’ portions are 74 percent and 79 percent, respectively. 

B All four services use models to determine 

budget requests for depot-level maintenance and to generate detailed schedules of the depots’ workload. 

B Spending on facilities falls into three categories: 

base operating support (the day-to-day expenses of facilities), facilities sustainment (periodic and preventative upkeep of facilities), and the restoration and modernizing of facilities that have not been adequately sustained or that need reconfiguration. The costs of base operating support are modeled by the Navy and the Army but not by the Air Force or the Marine Corps at 

the headquarters level.9 All of the services model 

the costs of facilities sustainment, and they all use the model created by the Office of the Secretary of Defense (OSD). The costs of restoring and modernizing facilities are modeled only by the Navy. 

CBO also found that the results of models are just one of many inputs to the budgeting process. Other inputs include guidance from the Office of Management and Budget (OMB), the National Military Strategy, individual program requirements, and initiatives directed by the leadership of the military departments and DoD. DoD’s program and budget review process attempts to allocate the fixed overall funding amount that the President and OMB set for the Department. Models inform decisions regarding resource allocation between competing areas of the budget, but they generally do not produce the final budget requests. Rather, the services often adjust the budget amounts generated by models in order to address programmatic trade-offs, budget constraints, and other factors not included in the models. CBO did not attempt to determine if budget requests informed by the results of models are superior to budget requests that do not involve any modeling input. Modeling can be a poor budgeting technique if the in

the mathematical relastood. Moreover, ther

budgets where modelcal, or of limited beneusually little reason to used for contracted selargely dictated by the and the bidding proceinternal costs. About This Do

Exhibits 1 through 4 CBO’s findings. This of the services’ budgetforces and a breakdowactivity modeled. Exhibits 5 through 8 service uses and the bumodel influences. Exhibits 9 through 18 the models the serviceoptempo and training The discussion includthe Army use to prepadeployment. Exhibits 19 through 2of the models the servof maintaining equipmcost of operating and 

9. While the Air Force and the Marine Corps do not have 

base operating support models, they do use models to inform their budget requests regarding civilian pay, which makes up more than one-third of their budgets for base operating support.

MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 1.

Modeled and Unmodeled Activities Within the Military Services’ 

Operation and Maintenance BudgetSource: Congressional Budget Office.Note: Not all modeled activities are shown. Areas are roughly proportional to the dollar amounts they represent. a. Amounts not already included in other models.b. Budget activities 02, 03, and 04 cover mobilization, training and recruiting, and administration and 

servicewide activities, respectively. CBO did not examine those activities and therefore did not determine how 

much of those activities are modeled.

Marine

Corps

Deployable

Days

Depot

Maintenance

Ship

Operations

Flying Hours

Army

Training

Miles

Civilian Pay a

Other

Flying Hours

Navy

Transportation

Air Force

Facilities

Budget Activity 01 (Operating Forces) Budget Activities 02 to 04b

Modeled

Not

Modeled

CBO’s Focus

Unknown

Amount of

Modeling

In consultation witSenate Armed Servgressional Budget Oidentifying budget of operating forces operation and mainThe services’ total 2O&M, excluding factivities, was abouthirds—$79 billionbudget activity 01 remaining one-thir02, 03, and 04 (morecruiting, and admactivities, respectivreport is on the porthat uses models at That portion, represection in the illust$53 billion in 2012 two-thirds of the reand just under half O&M excluding DThe circles represenincluding those metasking for this rep356 of the 2011 Ntion Act. Most modspecific to budgets some models, such span multiple O&M services also use motions that CBO did the services use morequests for their acand military personoutside of the scop
MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 2.

Selected Methods Used by the Services to Develop Their Budgets for 

Operating ForcesSource: Congressional Budget Office.

Budgeting Method Description ExamplesModels for Operating Tempo and Training

Models of services’ major training and peacetime deployment activities. Usually contain a readiness goal for deployable units. Model outputs such as flying hours are multiplied by a projected unit cost.

Flying hours (all services); ship operations (Navy); training miles (Army)

Detailed Projection Models

Detailed estimates of demands for products, services, or resources are multiplied by a projected unit cost.

Depot maintenance (all services); facilities sustainment (all services); base operating support (Army, Navy); civilian pay (all services)

Not Modeled, or Modeled Below the Headquarters Level

Projections of historical budgets into the current budget year, or projections built at a level below headquarters and aggregated.

Base operating support (Air Force, Marine Corps); facility restoration and modernization (Army, Air Force, Marine Corps)

CBO grouped the use to develop theiforces into three caconsists of models (optempo) and traimodels to estimate tary units, such as tdays, miles driven bflown by aviation uitly account for the perform in order to and therefore help ing certain readinesThe second categorthat CBO classified models. Those modrequirements for spresources, such as lnance. The military requirements by thuct, service, or resoestimated cost of thThe third category estimating costs thato be models. Instehistorical budgets iyear. The task is geadjusting past budging adjustments prdecreases in the totalso includes budgeuse headquarters-lean aggregation of morganizational level
MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 3.

Modeling of Budget Requests for Operating Forces, by

Service and Function(Billions of dollars)Source: Congressional Budget Office.a. For the purposes of this study, the Marine Corps’ flying hours and aviation depot-level maintenance were 

moved from the Navy’s budget to the Marine Corps’ budget to reflect which service actually performs those 

activities.

Navy

Modeled Amount 7.3 a 5.9 7.4 a 0.6 21.1

Budget Request 9.9 a 6.6 8.1 a 5.0 29.5Percentage Modeled 74 89 91 12 72

Army

Modeled Amount 5.6 8.8 1.2 1.9 17.4

Budget Request 5.6 10.1 1.2 4.4 21.3Percentage Modeled 100 87 100 41 82

Air Force

Modeled Amount 3.8 2.0 2.2 1.4 9.4

Budget Request 9.1 4.2 2.2 5.1 20.6Percentage Modeled 41 48 100 27 45

Marine Corps

Modeled Amount 2.4 a 1.4 0.6 a 0.3 4.6

Budget Request 3.0 a 3.0 0.6 a 0.8 7.4Percentage Modeled 79 46 100 33 63Modeled Amount 19.0 18.1 11.3 4.1 52.5Budget Request 27.6 23.9 12.0 15.3 78.8

Percentage Modeled 69 76 94 26 67

Operating Tempo

By Service

All Services

and Training Facilities Maintenance Miscellaneous All Functions

Depending on the seroughly 45 percent to requests for operating models by function: nance, facilities, and functions, optempo adollar amount of the eled, and the maintenpercentage of the budThe optempo and traities such as steaming hours for aviation unbetween 41 percent aoptempo and traininroughly $19 billion iThe facilities functiooperations of and repthat the services vary to that function. The Corps do minimal mthe Army model largrequests for base operfacilities budget that tions. All of the servithe Office of the Secmodel to build their The maintenance funmaintenance of equipEach of the services mbudget request for msenting over $11 billMiscellaneous activitthe other three functcategory within the mcivilian pay; each servber of and costs for ipay also appears in thmodeled by itself or 
MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 4.

Modeled Percentage of Operating Forces Budgets, by 

Service and FunctionSource: Congressional Budget Office.Notes: For the purposes of this study, the Marine Corps’ flying hours and aviation depot-level maintenance were 

moved from the Navy’s budget to the Marine Corps’ budget to reflect which service actually performs those activities.

Optempo = operating tempo.

Unmodeled

 (28%)

Expeditionary

Forces

 (1%)

Steaming

Days

 (9%) Flying Hours

 (14%)

Maintenance

 (25%)

Facilities

 (20%)

Miscellaneous

 (2%)

Unmodeled

 (18%)

Optempo and 

Training

(Ground miles,

flying hours)

 (26%)

Maintenance

 (6%)

Facilities

 (41%)

Miscellaneous

 (9%)

Unmodeled

Optempo and (55%)

Training

(Flying hours)

 (18%)

Maintenance

 (11%)

Facilities

 (10%)

Miscellaneous

 (6%)

Unmodeled

 (37%)

Optempo and Training

(Flying hours)

 (32%)

Maintenance

 (8%)

Facilities

 (19%)

Miscellaneous

 (4%)

Navy Army

Air

Force

Marine

Corps

Optempo and

Training

(25%)

The pie charts show ous exhibit but emmodeling among threflects differences tional structures anbuilding budgets. The Navy and the mands at the headqfacilities and modecontrast, the Air Fodo not have central generate their budgand services at the CBO does not covethe headquarters lemates to determine In addition, some smore than others. Iand the Army in patheir modeling effoboth developed new training. The Marimodel its budget reing, but it plans to purpose in fiscal yeCBO’s focus on onget (budget activity some services’ modthat are categorized about 13 percent obudget request for informed budgets fdepot-level maintenactivity 02, mobilizother services had lO&M request in thCBO did not incluanalysis, that additForce is not counte
CBO

Models Used by Each Service
MODELS USED BY EACH SERVICE MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 5.

Modeled Amounts of the Navy’s Budget Request for 

Operating ForcesSource: Congressional Budget Office.Note: SAG = subactivity group; OSD = Office of the Secretary of Defense.a. Amounts not already included in other models.b. Excludes money budgeted for the Marine Corps.

Function Model

SAG

Number SAG Name

Modeled Amount

of the 2012 Request

(Millions of dollars)

Operating Tempo and Training

Flying Hour Requirements 1A1A Mission and other flight operations 2,963 b

1A2A Fleet air training 1,272 b

Ship Operations 1B1B Mission and other ship operations 2,369Navy Expeditionary Combat Enterprise

1C6C Combat support forces not assigned to ships 447

Fleet Ordnance Support 1B2B Ship operations support and training 116Civilian Paya 1B2B Ship operations support and training 114

Facilities Base Operations Support

(15 models)

BSS1 Base operating support 3,919

OSD Facilities Sustainment BSM1 Sustainment, restoration, and modernization 1,355Shore Facilities Investment BSM1 Sustainment, restoration, and modernization 592

Maintenance Ship Depot Maintenance 1B4B Ship depot maintenance 4,973

1B5B Ship depot operations support 1,304

Aviation Depot Maintenance 1A5A Aircraft depot maintenance 597 b

1A6A Aircraft depot operations support 37

Optimization Performance(Ordnance maintenance)

1D1D,

1D4D

Cruise missiles; weapons maintenance 425

Navy Expeditionary Combat Enterprise

1D3D,

1D4D

In-service weapon systems support; weapons maintenance

42

Miscellaneous Civilian Paya Multiple Multiple subactivity groups 576Total Modeled Amount of the Request 21,101Total Request 29,482

According to CBO’s $21.1 billion, or 72 p$29.5 billion request About one-third of thin the Navy’s optempFlying Hour Requiremate the costs of opetraining student aircrMarine Corps are incfor this report, CBO Marines. The Ship Oestimate the costs of crews, and deploying the Navy Expeditionis used to estimate pocombat support forceas construction battaSlightly less than oneforces budget pays forepair of facilities. Thmodels to estimate abday-to-day costs of opat installations. The Ntainment model to esrepairs to facilities. It tion and modernizatifacilities that have nothat need reconfiguraMaintenance of shipsconstituted an additimodeled amount. Thmodel and Aviation Dused to estimate the tenance work on shiplevel. The Navy budgtenance costs for the signed those costs to report.


MODELS USED BY EACH SERVICE MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 6.

Modeled Amounts of the Army’s Budget Request for 

Operating ForcesSource: Congressional Budget Office.Note: SAG = subactivity group; OSD = Office of the Secretary of Defense.a. A full-spectrum mile is a composite measure of miles driven by tanks, trucks, and other vehicles.b. Amounts not already included in other models.

Function Model

SAG

Number SAG Name

Modeled Amount

of the 2012 Request

(Millions of dollars)

Operating Tempo and Training

Training Resource (Includes full-spectrum miles and flying hours)a

111 Maneuver units 1,400112 Modular support brigades 105113 Echelons above brigade 816114 Theater-level assets 826115 Land forces operations support 1,245116 Aviation assets 1,199

Facilities Base Operations 

Requirements

131 Base operations support 

modernization

6,491

OSD Facilities Sustainment 132 Sustainment, restoration, and 

modernization

2,303

Civilian Payb 132 Sustainment, restoration, and 

modernization

13

Maintenance Depot Maintenance 123 Land forces depot-level maintenance 1,180Miscellaneous Civilian Payb Multiple Multiple subactivity groups 1,810

Medical Field Services 122 Land forces systems readiness 54

Total Modeled Amount of the Request 17,442Total Request 21,322

According to CBO$17.4 billion, or 82 $21.3 billion reque2012. About one-tamount was in the tion. The Army’s Tused to estimate thvehicles (presented mile, which is a comdriven by tanks, truand flying aircraft dThe model also esttional support such units above the brigbattalions, units thwide operations sucthe Army’s CombaThe facilities functtion of the Army’s bforces, with models $9 billion. The ArmRequirements modcent of the requiremproviding services obudget request for Army uses OSD’s Fmodel. The Army also userequirement for devehicles, aircraft, ancivilian pay in the Abudget was associatian pay not already the Army’s request 
MODELS USED BY EACH SERVICE MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 7.

Modeled Amounts of the Air Force’s Budget Request for 

Operating ForcesSource: Congressional Budget Office.Notes: Unique among the services, the Air Force includes a portion of its flying hour, depot maintenance, and 

facilities sustainment budgets in subactivity groups outside of budget activity 01. SAG = subactivity group; OSD = Office of the Secretary of Defense; C3I = command, control, communications, and intelligence.

a. Amounts not already included in other models.

Function Model

SAG

Number SAG Name

Modeled Amount

of the 2012 Request

(Millions of dollars)

Operating Tempo and Training

Flying Hour 11A Primary combat forces 2,167

11C Combat enhancement forces 324

11D Air operations training 817

Civilian Paya 11A, 11C,

11D

Multiple subactivity groups 476

Facilities OSD Facilities Sustainment 11R Sustainment, restoration, and 

modernization

972

Civilian Paya 11Z, 11R Base operations support; 

Sustainment, restoration, and modernization

1,041

Maintenance Depot Maintenance 11M Depot-level maintenance 2,204Miscellaneous Flying Hour 12A Global C3I and early warning 29

12C Other combat operations support 

programs

95

Civilian Paya Multiple Multiple subactivity groups 1,228

Total Modeled Amount of the Request 9,351Total Request 20,585

According to CBO$9.4 billion, or 45 $20.6 billion reque2012. More than oamount was in the tion. The Air Force model to estimate tcombat forces such combat enhancemewarfare aircraft, fligcombat support prair forces used to dskills. For facilities, the onmodel that the Air ties Sustainment mand the Army, the Aheadquarters-level mrequest for base opForce, however, dolevel maintenance osystems. The Air Fopay, which, aside frincluded in other mlion of the operatinrequest. The modeled portiing forces budget is and Army for two rlacks a central facilimodel at the headqbase operating suppbudget for operatinportion that is civilForce’s budget struappear in the other budgets (budget acties 02, 03, and 04include in this anal
MODELS USED BY EACH SERVICE MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 8.

Modeled Amounts of the Marine Corps’ Budget Request for 

Operating ForcesSource: Congressional Budget Office.Notes: The Marine Corps uses deployable days as a measure of the percentage of days that ground units achieve 

deployable ratings in equipment and training. On the basis of a description provided in the Department of the Navy’s Fiscal Year 2012 Budget Estimates, Justification of Estimates (OP-5 1A1A pp. 6–8), CBO did not 

consider the deployable days metric to be a model and therefore excluded it from this table.SAG = subactivity group; OSD = Office of the Secretary of Defense.

a. Amounts not already included in other models.

Function Model

SAG

Number SAG Name

Modeled Amount

of the 2012 Request

(Millions of dollars)

Operating Tempo and Training

Flying Hour Requirements Navy 

1A1A

Included in Navy budget (Mission and other flight operations)

1,800

Navy 

1A2A

Included in Navy budget (Fleet air training)

500

Civilian Paya 1A1A Operational forces 95

Facilities OSD Facilities Sustainment BSM1 Sustainment, restoration, and 

modernization

566

Civilian Paya BSS1, 

BSM1

Base operations support; sustainment, restoration, and modernization

833

Maintenance Depot Maintenance 1A3A Depot-level maintenance 191

Aviation Depot Maintenance

Navy 

1A5A

Included in Navy budget (Aircraft depot maintenance)

382

Miscellaneous Civilian Paya 1A2A,

1B1B

Field logistics, maritime prepositioning 259

Total Modeled Amount of the Request 4,626Total Request 7,399

According to CBO$4.6 billion, or 63 Corps’ $7.4 billion in 2012. Most of thwas for the Marine Although those amNavy’s budget, CBthe Marine Corps’ this analysis to reflethose activities. The Marine CorpsOSD’s Facilities Sufor modeling civiliadoes not use modelfor base operating sinformation providCorp models its defor both ground anlevel aviation mainbudget, but for this in the Marine CorpThe Marine Corps its training budget method of construcuse a model to link (known as deployabMarine Corps unitcome of that trainiresources used. 
CBO

Models for Operating Tempo and Training Functio
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

CBO

Exhibit 9.

Modeling of Budgets for Operating Tempo and Training, by Service

Source: Congressional Budget Office.

Navy 9.9 7.3 74

Army 5.6 5.6 100

Air Force 9.1 3.8 41Marine Corps 3.0 2.4 79

____ ____

Total 27.6 19.0 69

2012 Budget Request Modeled Amount

(Billions of dollars) (Billions of dollars) Percentage Modeled

The services use mtheir major peacetifunctions such as fland steaming days. for $19 billion, or anearly $28 billion ities in 2012. The mForce’s budget requing is smaller than other services’ requForce’s modeled flyget activity 01. 
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 10.

The Navy’s Fleet Response Plan Cycle for Surface Combatants

Source: Department of the Navy.Note: Surface combatants include cruisers, destroyers, frigates, and littoral combat ships.

27-Month Cycle

Basic Integrated Sustainment Maintenance

Duration of Phase 112 days 90 days 546 days, of which 

183 are scheduled for deployment

63 days

Number of Days Under Way 43 days 43 days 117 days 0 daysActivities Sea trials, 

ammunition loading 

and unloading, 

unit-level training

Multiship

training exercises 

up to the carrier 

strike group level

Continued advanced multiship 

training, including carrier strike 

group exercises after deployment

Major 

maintenance 

overhaul

The Navy’s budgetthe Fleet Response training process useNavy forces for rounecessary, for contiIn the FRP cycle, tplexity until units aNot all units are exlevel of combat reathose that have an expected to be at thThis exhibit focusebecause they are thform in the Navy. Oconstruction battalcess to train and emsynchronize their aThe FRP cycle ran32 months, depend10 illustrates the FRbatants, which inclfrigates, and littoralists the length of tships and other unShips begin the FRduring which crewing. The length of is, on average, 112 112 days, ships are 43 days for sea trialoading and testing of the basic phase, operate as independphase, which lasts, train with other shiAt the end of that pbe sufficiently readoperations.
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 11.

Length of Fleet Response Plan Cycles for Selected Navy Units 

Source: Department of the Navy, Commander, U.S. Fleet Forces Command Instruction 3000.15: Fleet Response 

Plan, August 2007.

Note: FRP = Fleet Response Plan.

a. Surface combatants include cruisers, destroyers, frigates, and littoral combat ships.

Unit Type Length of FRP Cycle (Months)Aircraft Carrier 32Carrier Air Wing 32Amphibious Assault Ship 27Mobile Diving and Salvage 27Surface Combatanta 27

Explosive Ordnance Disposal Attachment 26Fast Attack Submarine 24Nuclear-Powered Cruise Missile Submarine 15

Next, ships enter this 546 days long, oduring that phase, plete a deployment of a carrier strike grgroup, or independships are expected treadiness throughoThe final step of thnance phase, which 63 days. Following the cycle in the bas
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 12.

The Navy’s Ship Operations Model

Source: Congressional Budget Office.

Number of Days

Under Way

Cost of Ship Operations per Day Under Way

Number of Days

Not Under Way 

Cost of Ship Operations per Day Not Under Way

Total Cost of 

Ship Operations 

Fuel

Supplies and equipment

Ship administration

Counterterrorism self-defense

Utilities

Average cost,

by ship class

Fuel

Supplies and equipment

Ship administration

Counterterrorism self-defense

Average cost,

by ship class

The Navy’s Ship Oinformation about ship as it goes thromodel is used to esships and training tseas. Costs include supplies, equipmencounterterrorism seThe basic logic of tnumber of days eaccost per day of opeway, and to do the each ship is not unare estimated by mdetermined average class of ship uses peby ship class, of thothe costs for all the under way and not of ship operations. The Navy previousused average annuaclass to estimate thbut it has refined ittime. According to tions model is a moestimating the cost it is directly linked in its fleet. The Nadevelop its fiscal ye
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 13.

The Methodological Approach of the Navy and Marine Corps’ 

Flying Hour Requirements ModelSource: Congressional Budget Office.

Fleet Response Plan 

proficiency goals and training plans

Hours for

Tactical Aviation Forces

Hours for

Initial Fleet and Student Training

Number of

training events

in the curriculum

Number of

trainees

Hours for

Fleet Air Support 

Number and duration of 

support operations

Total 

Number of 

Flying Hours 

Flying Hour

Requirements

Model

Cost per 

Flying Hour

Total 

Cost of the 

Flying Hour 

Program

The Navy and MarProgram provides rvices’ tactical aviatiincludes flying houthey are assigned to dent pilots, and for maintenance and loflight hours for actNaval Air Systems and evaluating aircThe Navy uses the model to determinFlying Hour Prograreserve forces. The both the total numin this exhibit) and (shown in Exhibit includes the indirecadministrative overnology support. Thhours is multiplied to obtain the total Hour Program.The calculation of tical aviation takes training events and objectives that pilovarious phases of thSimilarly, the flying tial training of exisassigned to a tacticinitial flight trainindetermined by the for those groups. Thours for support ofactors such as the refueling operation
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 14.

Components of Cost per Flying Hour in the Navy and Marine Corps’ 

Flying Hour Requirements ModelSource: Congressional Budget Office.

Cost per Hour

for AVDLRs

Aviation Depot-Level Repairables (AVDLRs) 

Historical cost,

by type, model, 

and series

of aircraft 

Adjustments for 

changes in aircraft

(age, usage, and

technical modifications)

Maintenance Consumables

Fuel

Cost per

Flying Hour 

Historical cost, 

by type, model, 

and series 

of aircraft 

Cost per Hour

for Consumables

Cost per Hour

for Fuel

Maintenance Contracts

Maintenance

contracts

in effect

Adjustments for

changes in 

contract costs

Cost per Hour

for Maintenance

Contracts 

Adjustments for

current price

of fuel 

Historical cost, 

by type, model, 

and series 

of aircraft 

Adjustments for 

changes in aircraft

(age, usage, and

technical modifications)

Adjustments for 

changes in the costs of

specific materials and

for general inflation

Adjustments for 

changes in the costs of

specific materials and

for general inflation

The Navy and MarRequirements modparts that are repai(aviation depot-levmaterials used for r(maintenance consmaintenance contrvate sector. The hisfor the four compofuture characteristi(age, usage, and tecthen adjusted to respecific materials, fgeneral inflation. Fcost per hour for eamined, and those acost per flying hou
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 15.

The Army’s Force Generation Cycle 

Source: Congressional Budget Office.a. The length of the cycle for units in the Army National Guard and Army Reserve is 60 months. For those units, 

the reset, train/ready, and available phases last 12, 36, and 12 months, respectively. The first 3 months of the available phase would be spent on postmobilization training before the units deploy. 

b. The Army is transitioning from 12-month deployments to 9-month deployments; Army policy states that all 

units deployed after April 1, 2010, will have a deployment of 9 months. As long as the Army retains the 36-month cycle, units deployed in the available phase will spend 3 extra months in either the reset or the 

train/ready phase.

Phases of the Cycle (Total length = 36 months)a

Reset Train/Ready Available

Duration of Phase(For units on active duty)

6 months 18 months 12 monthsb

Activities Reintegration of 

soldiers with families; 

equipment repair; 

personnel transfers; 

and training for 

individuals, teams, 

and crews.

Field training of increasing complexity 

to build readiness. Active units may 

be deployed and reserve units may be 

mobilized as surge forces. Deploying units 

conduct training on assigned missions. 

Units not identified for deployment remain 

in surge status and train for a wider range 

of possible missions.

Units conduct their 

missions. Units not used 

for contingencies train for 

full-spectrum operations. 

Deployed units return to 

reset after deployment. 

Units that do not deploy 

also return to reset after 

12 months.

The Army uses Arm(ARFORGEN), a spare its forces for oprotational cycle in wthree phases that pover time. Each phamounts of fundingis an important eleArmy’s O&M budgIn the reset phase, transfers and receivtakes place at the inlevels, and units are high state of readinport civil authoritiecombatant commaIn the train/ready presources are made ness and combat catraining of increasibattalion and brigareadiness milestoneof the phase with thActive units in the deployed, and reserif more forces are navailable. Units thament train for a wimay be designated any contingencies. In the available phaat the highest level considered for operignated for operatiofor up to 12 monthcontinue training wcontingency missio
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 16.

The Army’s Model for Calculating Direct Costs for Unit Operating 

Tempo and TrainingSource: Congressional Budget Office.

Cost per Mile

Fuel

Spare parts

Unit-level equipment

maintenance and repairs

Depot-level repairs

Total Number of Vehicle Miles per Unit

Miles per

training

event

Number of

vehicles or

pieces of

equipment

Number of

training

events

Total Direct 

Costs per Unit

The Army’s optempprovides resources tand it uses the Traiculate the funding The model divides ries: direct costs, whunits’ training activexhibit), and indirelargely by force strucosts for operating (shown in Exhibit Units incur direct ccles, fly aircraft, or training. The costs vehicles include expmaintenance, and rlevel, contracts with equipment at the u(such as those for enthe depot level. Thdata on the total exresources in relatiowhich it uses to estditures divided by nThe Training Resoprospective total nuyear on the basis of training events (witthose units go throuTo obtain total diremultiplies the numthree- or four-year 
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 17.

The Army’s Model for Calculating Indirect Costs for Unit Operating 

Tempo and TrainingSource: Congressional Budget Office.

Total Indirect 

Costs

Soldier Support

Number of

soldiers

Cost per

soldier

Civilian Personnel Support

Work years

per person

Combat Training

Center Program 

Major Equipment 

Maintenance

Contracts

Special Mission

Support, 

Miscellaneous

(Determined

outside the 

training model)

(Determined

outside the 

training model)

(Determined

outside the 

training model)

Cost per

work year

The indirect costs otraining program mvided to deployable Army. They includand personal equipSoldier Support Prsupport, the Army’program, contracts tain fixed-wing aircand the Army’s speThe method that thuses to calculate indfor direct costs, is nactual training. For levels for indirect crate processes and iAccording to Army processes use historpredict costs. In contrast to the Nmodel, which incluExhibit 12), the Armodel does not incunits. Once a unit operations, it receivcontingency appro
MODELS FOR OPERATING TEMPO AND TRAINING FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 18.

The Air Force’s Flying Hours Model

Source: Congressional Budget Office.

Formal Training of

Student Pilots

Combat and Mobility

Air Forces

Number of

students

Training

task-based hours

per student per day

Additional

flying hours per

student per day

Number of

training days

Number of

aircrews

Training

task-based hours

per aircrew per year

Additional

flying hours per

aircrew per year

Total Air Force

Flying Hours

The Air Force’s flyiprovide basic flight and other aircrew, ccombat pilots, and experience of mobiAir Force Flying Hservicewide flying hcurriculum and nudent training, and and number of aircity forces. Servicewthe total hours for Student pilots go thlum, performing vanumbers of hours. those tasks, studenrepeat tasks or to mThe Flying Hours flying hours for stumultiplying flying (task-based plus adthe number of studtraining days. Aircrews in combat specific number of complete their trainuse additional flyinsuch as search and total flying hours foforces by multiplyiadditional flying honumber of aircrews
CBO

Models for Facilities and Maintenance Function
MODELS FOR FACILITIES AND MAINTENANCE FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 19.

Modeling of Budgets for Facilities and Maintenance, by Service

(Billions of dollars)Source: Congressional Budget Office.

Navy 14.6 13.2 92

Army 11.3 10.0 88

Air Force 6.4 4.2 66

Marine Corps 3.6 2.0 55

____ ____

Total 35.9 29.4 82

2012 Budget Request Modeled Amount Percentage Modeled

Models informed avices’ total 2012 bufor facilities and mafacilities function cperiodic repair and the services’ facilitietion deals with the tems and equipmenhave different types systems, but they altions in similar waycomparable requireupkeep of facilities, constructing budgevaries considerably ference between the use models to inforfacilities budgets, aMarine Corps, whimuch smaller portiof variations in the approaches and org
MODELS FOR FACILITIES AND MAINTENANCE FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 20.

The Navy’s and Army’s Base Operating Support Models

Source: Congressional Budget Office.

Modeling of Budgets for Base Operating Support

Service Subactivity Group Number

Modeled Amount of the

2012 Budget Request

(Billions of dollars)

Total 2012

Budget Request

(Billions of dollars)

Navy BSS1 3.9 4.6Army 131 6.5 7.6

Total n.a. 10.4 12.2

Demand for 

services

Desired quality

of services

Level of Services

Base Operating

Support Budget

Projected Cost of Services

Historical costs of

personnel, equipment,

and supplies

Adjustments

for inflation

Base operating supactivities that enabof military bases, ingrams that promotservice members, thian workforce. The models are similar. related models to eBOS activities. The demand for anservices affect their services depends on population and sqution; quality is gaufrequency and waitquency of garbage the line at the dininArmy determine thservices they will plevel of services by ical costs adjusted fresources needed to The result is the babudget. The Navy’s BOS mcovering 28 distinctection and child dNavy’s request for Blion, roughly 85 pefrom its BOS modBOS in 2012 was $85 percent of which The Air Force and use models at the htheir BOS budget rcivilian pay associasupport. 
MODELS FOR FACILITIES AND MAINTENANCE FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 21.

OSD’s Facilities Sustainment Model for All Services

Source: Congressional Budget Office.Note: OSD = Office of the Secretary of Defense.

Modeling of Budgets for Facilities Sustainment

Service Subactivity Group Number

Modeled Amount of the

2012 Budget Request

(Billions of dollars)

Total 2012

Budget Request

(Billions of dollars)

Navy BSM1 1.4 1.4Army 132 6.5 2.3Air Force 11R 1.0 1.0Marines BSM1 0.6 0.6

Total n.a. 5.2 5.2

Services’ Facilities

OSD’s Facilities

Sustainment Goal

Standard Industry

Cost Factors

Type of facility

Facility location

Inflation

OSD’s Funding Goal

(90% of services’

requirements)

Type

Size

Location

Facilities sustainmetative maintenance things as roofs, carpsystems. All of the the Office of the Se(OSD’s) Facilities Smine their budget The services providto OSD, including locations, and condstandard industry cand inflation, for peach type of facilityment is obtained bcosts of all facilities In order to ensure aset a goal for the se90 percent of their from the model. Bestraints, the Navy ato fund only 80 pe2012 derived from objected to that unThe Navy is uniquit uses a model to infacility restoration tion to facilities susmodernization costthat have not been reconfiguration, or cial circumstances sShore Facilities Invreplacement value, tion funding for eacrecapitalization reqoperating forces powas about $600 mi
MODELS FOR FACILITIES AND MAINTENANCE FUNCTIONS MODELS USED BY THE MILITARY SERVICES TO DEVELOP BUDGETS FOR ACTIVITIES ASSOC

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Exhibit 22.

Modeling of Depot-Level Maintenance by All Services

Source: Congressional Budget Office.a. For the purposes of this study, the Marine Corps’ aviation depot-level maintenance was moved from the Navy’s 

budget to the Marine Corps’ budget to reflect which service actually performs those activities.

Modeling of Budgets for Depot-Level Maintenance Within the Operating Forces Budget

Service Subactivity Group Number

Modeled Amount of the

2012 Budget Request

(Billions of dollars)

Total 2012

Budget Request

(Billions of dollars)

Navy Multiple 7.4 a 8.1 aArmy 123 1.2 1.2Air Force 11M 2.2 2.2Marines 1A3A, Navy 1A5A 0.6 a 0.6 a

Total n.a. 12.0 11.3

Depot

Maintenance

Budget

Projection of

Workload

(By type of equipment)

Projected Price of

Materials and Labor

Workload Factors

Scheduled

maintenance

Upgrades

Inspections

Damage repair

Depot Capacities

Depot 50/50 Rule

Maintenance of equilevel is the most intenscheduled maintenanand repairs of battle found that all four semaintenance budgetsrequirements for each series of aircraft; modtype of ordnance. Thsideration the depotsrequirements mandawhich states that at lmaintenance must be facilities (as opposed 10 U.S.C. section 24services develop maindetail types and quanbrought into the depamounts of work to bMost of the service-othrough working caparrangement, the WCdirectly from CongreInstead, operational cfor maintenance of thappropriated funds tpose. With the goal ocosts, the depots set tlabor before a fiscal ymate their depot-levemultiplying the projeprojected costs of maCBO found that neadepot-level maintenawith models, a total obudget includes costs tion depot-level mainthat amount, about $the Marine Corps. 

