Development of a Comprehensive Process for the Department of the Navy to Capture Reimburseable Costs as It Related to the Use of Aircraft Platforms in Support of Global Contingencies from the Overseas Contingency Operations Transfer Fund

by Orie D. Frazer

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This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A680104. The abstract provided by the Pentagon follows: This thesis examines the processes used by the Navy and the Air Force for identifying incremental costs associated with the aircraft platforms used in support of the Noble Anvil campaign, which highlighted the bombing of Kosovo. Examination of these methods was done to determine if the Navy was able to properly and completely capture incremental costs to receive full reimbursement from the Overseas Contingency Operations Transfer Fund (OCOTF) . The thesis begins with an overview of the OCOTF and its intended purpose, and continues with an in depth analysis of the processes implemented by both services to identify and report incremental costs for aircraft platforms to OSD. It further compares the methodologies, highlighting the advantages and pitfalls of each, and assesses the possibility of lost funding to the Navy based on the processes employed. This research concludes that the Navy did not suffer any loss of funds based on ineguity in disbursements from the OCOTF based on the methodologies it exercised. However, key factors which potentially prevented greater reimbursement were identified to be: (1) The interpretation of vague guidance for determining incremental costs, (2) Poor record-keeping and accountability of operational missions flown, (3) The use of different methodologies for capturing incremental costs by both services and within the Navy, and (4) The impact of the Navy's forward deployed status on incremental costs.

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