Estimating Logistics Burdens in Support of Acquisition Decisions

Abstract

Department of Defense policy and federal statute call for using the fully burdened cost of energy in cost estimates that support acquisition decision-making, so that decisions reflect all the costs throughout the organization that will be incurred (or saved) by a given acquisition decision. This work explores methods to estimate the fully burdened cost of supply for fuel, batteries, water, and other consumables as a function of variables that may be modeled during early (up to and including Milestone A) acquisition decisions, such as the geographic location at which supply is demanded.