Reserve Component Costs: A Relook

Abstract

Abstract: Army Force Generation (ARFORGEN) costing model suggests Active and Reserve forces cost about the same. Thus, many of the assumptions about the cost-effectiveness of Reserve Components may need a closer look. Budget Cycles we close the book on one of America's longest military engagements, the battle for shrinking resources is growing more intense. But what risk can we realistically assume before we place US security interests in jeopardy? Many solutions call for the Army to move more of its capabilities to the Reserve Component. However, the cost savings may not be as great as we might think. This article explores some of those costs through the Army Force Generation (ARFORGEN) costing model. Cost-Effective Reserve Components National Guard Bureau 2013 Posture Statement: Security America Can Afford states The National Guard is the DOD's most cost effective component. One of the reasons listed is that 11% of the Army Budget, the Army National Guard provides 32% of the Army's total personnel and 40% of its operating forces. (1) United States Army Reserve 2013 Posture Statement makes a similar claim: As the Army's only Federal Operational Reserve Force, the Army Reserve provides a cost-effective way to mitigate risk to national security. For only 6 percent of the Army budget, the Army Reserve provides almost 20 percent of the Total Force. (2) Clearly, the percentage of total force provided by each reserve component is correct. However, statements about percent of the Army budget need to be qualified. They hold true when viewing the Army budget purely from an appropriations-sponsor perspective, but the Army pays for several National Guard and Army Reserve expenses through active Army appropriations. Here are a few examples: * Other Procurement of Army (OPA) appropriation is used to purchase new equipment for all three components. Army may buy 50 new trucks and allocate ten to the ARNG and ten to the USAR. cost of new equipment is not included in reserve component appropriations. * Operations and Maintenance, Army (OMA) appropriation pays the overhead costs of operating ten rotations per year at the National Training Center (NTC) and Joint Readiness Training Center (JRTC). National Guard uses one rotation per year at each center and pays its own military personnel costs and a portion of the OM (2) establish common Army costing baselines to compare Active and Reserve Component costs; and (3) gain leadership agreement (AC, ARNG, and USAR) so those leaders could accurately engage the Office of the Secretary of Defense and other agencies outside the department. …