Life Cycle Cost Analysis of Satellite Communications Systems

Over the last ten years, the MITRE Corporation has been involved in the life cycle cost (LCC) evaluation of proposed and implemented systems for the AFSATCOM and MILSTAR Programs. In particular, LCC computer models have been created to represent the logistics structure and associated operation and support costs of airborne satellite communications systems. These LCC Models allow for the representation of differing equipment configurations on multiple platform types (both airborne and ground) and for variable platform deployments at bases worldwide. The LCC Models are also flexible enough to analyze differing maintenance concepts, including two versus three-level repair and centralized intermediate maintenance facilities. These LCC Models have been provided to contractors both for their in-house use in conducting LCC analysis and for reporting LCC results to the Government. The prime purposes these LCC Models have served are to: (1) Identify high LCC drivers in both equipment design and support concepts, (2) Serve as a LCC trade-off analysis tool, and (3) Provide a Government-approved and uniform framework for LCC analysis by competing contractors (i.e., avoiding "apples versus oranges" comparisons). Several specific examples of cost savings generated by this LCC analysis are illustrated, including an analysis of AFSATCOM support equipment deployment.