Executive Summary
This thesis statistically analyzes Operating Target (OPTAR) expenditures for Los Angeles-class submarines across Pacific Fleet homeports to identify differences and efficiencies. Using data from the NCCA’s VAMOSC database, it applies Student-t tests, Wilcoxon rank-sum tests, and regression analysis. The study found statistically significant differences in "Other OPTAR" expenditures between homeports and correlations between OPTAR spending and ship schedules.
Why It Matters
This document is crucial for defense analysts as it provides a detailed statistical examination of financial management within the U.S. Navy's submarine fleet, directly impacting operational readiness and resource allocation. Understanding these expenditure patterns can inform strategic budgeting decisions and identify areas for efficiency in maintaining critical naval assets.
Key Takeaways
- Statistically significant differences exist in "Other OPTAR" expenditures among Pacific Fleet homeports for Los Angeles-class submarines.
- Correlations were found between OPTAR expenditures and ship schedules, suggesting operational tempo influences spending.
- The VAMOSC database is a valuable tool for future OPTAR research and identifying cost drivers for naval assets.
- The study recommends a closer look at "Other OPTAR" spending, considering activity-based costing, and investigating the propensity to spend allotted funds.
Strategic Relevance
Effective financial management of naval assets, particularly submarines, directly impacts fleet readiness and strategic projection. Identifying expenditure disparities and their drivers across homeports allows for optimized resource allocation, potentially freeing up funds for other strategic priorities or improving the efficiency of existing operations. This directly supports the long-term sustainability and operational effectiveness of a critical component of U.S. naval power in the Pacific.