Fully Burdened Cost of Energy Analysis: A Model for Marine Corps Systems

Abstract

This thesis develops an operational model for estimating the Fully Burdened Cost of Energy (FBCEnergy) for the United States Marine Corps (USMC). Marine Corps Systems Command (MARCORSYSCOM) is responsible for the acquisition of ground equipment for the USMC. While USMC ground equipment is primarily dependent on fossil-based fuel, recent shifts in Department of Defense (DoD) acquisition policy require consideration of all energy consumption, not just fuel. This thesis uses a stochastic approach and Monte Carlo simulations to develop an operational, easy-to-adjust model for estimating the FBCEnergy for the USMC while considering the commodity cost of fuel, fuel delivery operation and support costs, fuel delivery asset depreciation, direct fuel infrastructure, indirect fuel infrastructure, environmental cost, and other platform-unique costs such as force protection or regulatory compliance. The model and main findings of this thesis can be used in any future Analysis of Alternatives (AoA) performed before the acquisition of new weapon systems.