Rethinking the Buy vs. Lease Decision
In years past, the DoD has considered leasing major equipment from defense industry firms in order to acquire needed capability quickly and without the upfront expense. A number of studies have analyzed the costs and benefits of leasing (as opposed to purchasing) specific military equipment (e.g., E...
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ftdtic:ADA624634 2023-05-15T16:42:03+02:00 Rethinking the Buy vs. Lease Decision Gansler, Jacques S Lucyshyn, William Rigilano, John MARYLAND UNIV COLLEGE PARK 2014-04-30 text/html http://www.dtic.mil/docs/citations/ADA624634 http://oai.dtic.mil/oai/oai?&verb=getRecord&metadataPrefix=html&identifier=ADA624634 en eng http://www.dtic.mil/docs/citations/ADA624634 Approved for public release; distribution is unlimited. DTIC Economics and Cost Analysis *COST ANALYSIS BENEFITS LEASING MILITARY EQUIPMENT PURCHASE Text 2014 ftdtic 2016-02-24T19:23:24Z In years past, the DoD has considered leasing major equipment from defense industry firms in order to acquire needed capability quickly and without the upfront expense. A number of studies have analyzed the costs and benefits of leasing (as opposed to purchasing) specific military equipment (e.g., Engin, 1989; Lebo & Scott, 2009). Some of these lease arrangements, such as the Navy s long-term lease of tanker ships between 1983 and 2011, proved to be cost effective, or at least cost neutral, depending on the evaluation criteria used (Haslam, Koenig, & Mitchell, 2004; Miguel, Shank, & Summers, 2005). Nevertheless, the ensuing congressional backlash led to the passage of new regulations in the early 1980s, including the submission of a detailed justification for lease versus purchase, which has effectively restricted the use of long-term leases. Support for leasing major equipment continues to decline. Recently, for example, the Coast Guard considered leasing polar icebreakers to supplement its two-ship fleet, one of which has exceeded its 30-year service life (GAO, 2011). In the end, Stephen L. Caldwell, Director of Homeland Security and Justice, noted that the lack of existing vessels capable of meeting Coast Guard requirements limited the availability of leasing options. He also stated that an initial cost-benefit analysis of one type of available leasing option suggested that it may ultimately be more costly to the Coast Guard over the 30-year icebreaker lifespan (O Rourke, 2012, p. 30). Text Icebreaker Defense Technical Information Center: DTIC Technical Reports database Caldwell ENVELOPE(-101.500,-101.500,-72.083,-72.083) |
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Defense Technical Information Center: DTIC Technical Reports database |
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English |
topic |
Economics and Cost Analysis *COST ANALYSIS BENEFITS LEASING MILITARY EQUIPMENT PURCHASE |
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Economics and Cost Analysis *COST ANALYSIS BENEFITS LEASING MILITARY EQUIPMENT PURCHASE Gansler, Jacques S Lucyshyn, William Rigilano, John Rethinking the Buy vs. Lease Decision |
topic_facet |
Economics and Cost Analysis *COST ANALYSIS BENEFITS LEASING MILITARY EQUIPMENT PURCHASE |
description |
In years past, the DoD has considered leasing major equipment from defense industry firms in order to acquire needed capability quickly and without the upfront expense. A number of studies have analyzed the costs and benefits of leasing (as opposed to purchasing) specific military equipment (e.g., Engin, 1989; Lebo & Scott, 2009). Some of these lease arrangements, such as the Navy s long-term lease of tanker ships between 1983 and 2011, proved to be cost effective, or at least cost neutral, depending on the evaluation criteria used (Haslam, Koenig, & Mitchell, 2004; Miguel, Shank, & Summers, 2005). Nevertheless, the ensuing congressional backlash led to the passage of new regulations in the early 1980s, including the submission of a detailed justification for lease versus purchase, which has effectively restricted the use of long-term leases. Support for leasing major equipment continues to decline. Recently, for example, the Coast Guard considered leasing polar icebreakers to supplement its two-ship fleet, one of which has exceeded its 30-year service life (GAO, 2011). In the end, Stephen L. Caldwell, Director of Homeland Security and Justice, noted that the lack of existing vessels capable of meeting Coast Guard requirements limited the availability of leasing options. He also stated that an initial cost-benefit analysis of one type of available leasing option suggested that it may ultimately be more costly to the Coast Guard over the 30-year icebreaker lifespan (O Rourke, 2012, p. 30). |
author2 |
MARYLAND UNIV COLLEGE PARK |
format |
Text |
author |
Gansler, Jacques S Lucyshyn, William Rigilano, John |
author_facet |
Gansler, Jacques S Lucyshyn, William Rigilano, John |
author_sort |
Gansler, Jacques S |
title |
Rethinking the Buy vs. Lease Decision |
title_short |
Rethinking the Buy vs. Lease Decision |
title_full |
Rethinking the Buy vs. Lease Decision |
title_fullStr |
Rethinking the Buy vs. Lease Decision |
title_full_unstemmed |
Rethinking the Buy vs. Lease Decision |
title_sort |
rethinking the buy vs. lease decision |
publishDate |
2014 |
url |
http://www.dtic.mil/docs/citations/ADA624634 http://oai.dtic.mil/oai/oai?&verb=getRecord&metadataPrefix=html&identifier=ADA624634 |
long_lat |
ENVELOPE(-101.500,-101.500,-72.083,-72.083) |
geographic |
Caldwell |
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Caldwell |
genre |
Icebreaker |
genre_facet |
Icebreaker |
op_source |
DTIC |
op_relation |
http://www.dtic.mil/docs/citations/ADA624634 |
op_rights |
Approved for public release; distribution is unlimited. |
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1766032508721299456 |