4035-E-Tighter-Fist-Def-6ed.pdf

Instructions

This spreadsheet is for the use of the Defense Team during Exercise Tighter Fist.

It allows you to determine the cost of the force structure formed as a result of the strategy and plans you have developed for modifications to the existing force structure. This means that you can, for example, see how much you could save by reducing forces, or how much it would cost to finance a build up of forces, or what the costs would be to change from conscript to completely professional military forces. Your task is to modify the force structure existing in the current year (2008) to meet the security and fiscal challenges that appear to be emerging for the next year (2009).

To use the spreadsheet click on “Force” at the bottom of this sheet and enter your decisions on force structure and equipment replacement for the next fiscal year. Note that the 2008 force structure is used as the initial force structure for 2009. No procurement expenditures are yet shown for 2009.

Changes in force structure involving an increase in forces or a replacement of forces will incur unit costs indicated in the Procurement section on the “Unit Costs” spreadsheet. No financial credit is provided for force reductions, though any eliminated forces will obviously no longer require Personnel or O&M costs. Note that old and new force units incur different O&M costs. Equipment replacement numbers obviously cannot exceed numbers in existing force structure. Note too that you may increase or decrease annual pay rates for all classes of service.

Headquarters units may be reduced or increased proportionately. Reducing a headquarters unit by one-half, for example, will reduce the headquarters manpower requirements (but not the overhead costs) by one-half.

Increases and reductions in force structure will have Personnel and O&M implications that are automatically computed for you.

You may only change values appearing in those cells highlighted in yellow. When you enter your choices, the manpower and budgetary implications of these choices are immediately computed. Detailed budgetary implications are indicated on the sheet marked “Budget” at the bottom of this page.

It is advisable to save your work under a new file name each time that you wish to evaluate an alternative force structure. Printing out the results of each run will make it easier to assess and to compare the budget implications of these alternatives.

EXERCISE TIGHTER FIST DEFENSE TEAM

FORCE STRUCTURE PLANNING

Existing Force Structure 2008 Number of HQs General Navy Army Air Force (GHQ=2500, other = 1500) 1.0 1.0 1.0 1.0

Forces Regular Conscript Reserve Total Unit Personnel* Regular Conscript Reserve Frigates 10 2 0 12 Frigates 800 800 800 Patrol vessels 8 4 2 14 Patrol vessels 300 300 300 Infantry battalions 4 16 5 25 Infantry battalions 3500 3500 3500 Armored battalions 6 6 6 18 Armored battalions 2500 2500 2500 Fighter squadrons 4 0 0 4 Fighter squadrons 800 800 800 Helicopter squadrons 6 0 0 6 Helicopter squadrons 800 800 800

Total Personnel (*Includes all operational, training and support personnel.)

Navy 11900 2800 600 15300 Army 30500 71000 32500 134000 Air Force 9500 0 0 9500

GHQ 2500 2500

Total 54400 73800 33100 161300

Planned Force Structure 2009 General Navy Army Air Force

Number of HQs 1.0 1.0 1.0 1.0

Forces Regular Conscript Reserve Total Frigates 10 2 0 12 Patrol vessels 8 4 2 14 Infantry battalions 4 16 5 25 Armored battalions 6 6 6 18 Fighter squadrons 4 0 0 4 Helicopter squadrons 6 0 0 6

Equipment Replacement Regular Conscript Reserve Total Frigates 0 0 0 0 Patrol vessels 0 0 0 0 Infantry battalions 0 0 0 0 Armored battalions 0 0 0 0 Fighter squadrons 0 0 0 0 Helicopter squadrons 0 0 0 0

Personnel Navy 11900 2800 600 15300 Army 30500 71000 32500 134000 Air Force 9500 0 0 9500

GHQ 2500 0 0 2500

Total 54400 73800 33100 161300

2008 2009 Defense Budget Required (thousands of lovas) 5782200 5527200 Percentage Change -4.4%

Unit Costs

(thousands of lovas)

HQ Overhead 30000

Procurement Regular Conscript Reserve Frigates 100000 100000 100000 Patrol vessels 35000 35000 35000 Infantry battalions 50000 50000 50000 Armored battalions 125000 125000 125000 Fighter squadrons 250000 250000 250000 Helicopter squadrons 125000 125000 125000

O&M (old) Regular Conscript Reserve Frigates 24000 20000 10000 Patrol vessels 12000 12000 6000 Infantry battalions 16000 12500 5000 Armored battalions 35000 30000 12000 Fighter squadrons 45000 45000 45000 Helicopter squadrons 32500 32500 32500

O&M (new) Regular Conscript Reserve Frigates 20000 17000 8000 Patrol vessels 9500 7500 5000 Infantry battalions 15000 12000 4500 Armored battalions 28000 27000 10000 Fighter squadrons 35000 35000 35000 Helicopter squadrons 27000 27000 27000

Personnel (Annual Pay) Regular Conscript Reserve Navy 40 16 14 Army 40 16 14 Air Force 40 16 14

GHQ 50

FORCE STRUCTURE COSTING RESULTS

Initial Costs (thousands of lovas)

Navy Army Air Force GHQ Totals Equipment Calculations Personnel Costs 529200 2811000 380000 125000 3845200 O&M Costs 436000 751000 375000 0 1562000 Frigates 0 0 0 0 Procurement Costs 80000 75000 100000 0 255000 Patrol vessels 0 0 0 0 HQ Overhead Costs 30000 30000 30000 30000 120000 Infantry battalions 0 0 0 0 Totals 1075200 3667000 885000 155000 5782200 Armored battalions 0 0 0 0

Fighter squadrons 0 0 0 0 Budget Distribution Helicopter squadrons 0 0 0 0

Navy Army Air Force HQ Totals Personnel Costs 49% 77% 43% 81% 67% O&M Costs 41% 20% 42% 0% 27% Frigates 0 0 0 0 Procurement Costs 7% 2% 11% 0% 4% Patrol vessels 0 0 0 0 HQ Overhead Costs 3% 1% 3% 19% 2% Infantry battalions 0 0 0 0 Totals 19% 63% 15% 3% 100% Armored battalions 0 0 0 0

Fighter squadrons 0 0 0 0 Helicopter squadrons 0 0 0 0

Planned Costs (thousands of lovas)

Navy Army Air Force HQ Totals Frigates 10 2 0 12 240000 40000 0 280000 Personnel Costs 529200 2811000 380000 125000 3845200 Patrol vessels 8 4 2 14 96000 48000 12000 156000 436000 Navy O&M Costs 436000 751000 375000 0 1562000 Infantry battalions 4 16 5 25 64000 200000 25000 289000 Procurement Costs 0 0 0 0 0 Armored battalions 6 6 6 18 210000 180000 72000 462000 751000 Army HQ Overhead Costs 30000 30000 30000 30000 120000 Fighter squadrons 4 0 0 4 180000 0 0 180000 Totals 995200 3592000 785000 155000 5527200 Helicopter squadrons 6 0 0 6 195000 0 0 195000 375000 Air Force

1562000 Budget Distribution

Navy Army Air Force HQ Totals Frigates 0 0 0 0 0 0 0 0 Personnel Costs 53% 78% 48% 81% 70% Patrol vessels 0 0 0 0 0 0 0 0 0 Navy O&M Costs 44% 21% 48% 0% 28% Infantry battalions 0 0 0 0 0 0 0 0 Procurement Costs 0% 0% 0% 0% 0% Armored battalions 0 0 0 0 0 0 0 0 0 Army HQ Overhead Costs 3% 1% 4% 19% 2% Fighter squadrons 0 0 0 0 0 0 0 0 Totals 18% 65% 14% 3% 100% Helicopter squadrons 0 0 0 0 0 0 0 0 0 Air Force

Economic Impact 2008 2009 GDP (millions of lovas) 207500 214763 1562000 GDP Growth Rate 3.5% 3.5% Defense (millions of lovas) 5782.2 5527.2 Defense as Share of GDP 2.8% 2.6%

Net Changes

Increases

Total O&M

Remaining Old

Total New

O&M Calculations

O&M Remaining Old Equipment

O&M New Equipment

Expenditure Distribution

70%

28%

0% 2%

Personnel Costs O&M Costs Procurement Costs HQ Overhead Costs

Expenditure by Service

18%

65%

14% 3%

Navy Army Air Force

HQ