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Navy Saves Millions in Manpower Costs

As part of an ongoing series of manpower allocation and alignment analyses, known as the flagpole studies, LMI provided two innovative costsaving assessments for the Navy. In the first, we assessed the Navy’s total cost of ownership and most efficient way to maintain the C-130 combat cargo capability. We provided options for reducing manpower while maintaining operational readiness and potentially saving $19 million.

For the second, we developed a boldly creative new model for saving hundreds of millions of dollars in staff costs, not by cutting personnel, but simply by converting their status. LMI’s method showed that by converting 12,000 billets from military to civilian, while maintaining the sea-shore rotation, the Navy could potentially save $600 million over 5 years. In addition, our model demonstrated the probability of fewer turnovers in staff and management, greater institutional knowledge and continuity, and less training.