CHILDREN AND FAMILIES The RAND Corporation is a nonprofit institution that helps improve policy and EDUCATION AND THE ARTS decisionmaking through research and analysis. ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE This electronic document was made available from www.rand.org as a public service INFRASTRUCTURE AND of the RAND Corporation. TRANSPORTATION INTERNATIONAL AFFAIRS LAW AND BUSINESS Skip all front matter: Jump to Page 16 NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY Support RAND SCIENCE AND TECHNOLOGY Browse Reports & Bookstore TERRORISM AND Make a charitable contribution HOMELAND SECURITY For More Information Visit RAND at www.rand.org Explore the Pardee RAND Graduate School View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non- commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This product is part of the Pardee RAND Graduate School (PRGS) dissertation series. PRGS dissertations are produced by graduate fellows of the Pardee RAND Graduate School, the world’s leading producer of Ph.D.’s in policy analysis. The dissertation has been supervised, reviewed, and approved by the graduate fellow’s faculty committee. Dissertation Enhancing the Assessment of the Costs and Benefits of International Pilot Training (IPT) Within the U.S. Air Force Is It Worth It? McKay McLaren C O R P O R A T I O N Dissertation Enhancing the Assessment of the Costs and Benefits of International Pilot Training (IPT) Within the U.S. Air Force Is It Worth It? McKay McLaren This document was submitted as a dissertation in December 2014 in partial fulfillment of the requirements of the doctoral degree in public policy analysis at the Pardee RAND Graduate School. The faculty committee that supervised and approved the dissertation consisted of Bart Bennett (Chair), Fred Timson, and William A. Williams. PARDEE RAND GRADUATE SCHOOL The Pardee RAND Graduate School dissertation series reproduces dissertations that have been approved by the student’s dissertation committee. The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND documents to a non-RAND website is prohibited. RAND documents are protected under copyright law. For information on reprint and linking permissions, please visit the RAND permissions page (http://www.rand.org/publications/permissions.html). Published 2015 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org/ To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface This dissertation provides a unique perspective on valuing the total monetary cost and the operational monetary and nonmonetary benefits of international pilot training (IPT) that have not been explored previously. We investigate the costs of IPT that result from the sale of defense equipment through the U.S. government Foreign Military Sales (FMS) program. Costs are not fully reimbursed due to 1) special discount rates for North Atlantic Treaty Organization (NATO) nations and many other allies and 2) rates below actual costs. There are costs to the service above and beyond even the full reimbursement rate or formal course price for international training. We use the case study of F-16 international training at the Tucson Air National Guard to derive the direct cost incurred through discounting, as well as an estimate of the cost above and beyond the full FMS price. We provide a unique approach to assess operational benefits of IPT not previously considered. We quantify the operational savings to the U.S. Air Force (USAF) realized by USAF-trained international partners in coalitions with U.S. forces. We focus on the primary components of the operational costs borne by our allies during the Libya conflict in 2011, explicitly including deployment-oriented flying costs, tanker costs, personnel travel costs, equipment delivery costs, and costs for ordnance expended. We then provide an overall assessment of the monetary costs and savings of IPT. Finally, we provide an example of the nonmonetary benefits of FMS to the USAF by analyzing the impact of FMS-provided capability on allied interoperability. We measure changes in interoperability of allied nations from the conflicts in Kosovo (1999) to Libya (2011). We outline FMS activity from 1999 to 2011 for the allied nations and use historical analysis and structured interviews with military leaders to assess the impact FMS has had on allied interoperability. This research shows that within the historical operational aspects considered in this dissertation, the benefits of FMS-directed IPT to the USAF are shown to outweigh the monetary costs. There are other monetary and nonmonetary benefits of FMS and IPT along with some additional IPT costs and reciprocal benefits not covered in this dissertation. Additional costs accrue in the administration and execution of IPT. Benefits include the impact on the U.S. defense industrial base, bilateral defense relationships, regional stability, U.S. force structure impacts, spare parts procurements, and the extended impact on the USAF training enterprise. When considering these factors, one may find additional value of FMS and IPT to support the findings of this research. This research is sponsored by the Director of Policy, International Affairs, Office of the Under Secretary of the Air Force (SAF/IAP). Part of the work was conducted within the Manpower, Personnel, and Training Program of RAND Project AIR FORCE as part of a fiscal iii year 2013 study, Foreign Military Sales and Air Force Training Capacity. The target audience for this research is SAF/IA, AETC/IA, AFSAT, Air Force leadership, and anyone interested in FMS, training, and international coalition building. This research is for FMS policymakers, not operational planners or programmers. The views expressed in this dissertation are those of the author and do not reflect the official policy or position of the USAF, Department of Defense, or the U.S. government. Contact Information The author invites comments on the information presented in this report and welcome modification, as well as additional ideas for consideration, as part of our current research effort. Comments should be directed to McKay McLaren as follows: McKay McLaren RAND Corporation 1776 Main Street Santa Monica, CA 90407-2138 E-mail: [email protected] iv Table of Contents Preface ............................................................................................................................................ iii Contact Information ............................................................................................................................... iv Figures........................................................................................................................................... vii Tables ............................................................................................................................................. ix Summary ........................................................................................................................................ xi Acknowledgments....................................................................................................................... xvii Abbreviations ............................................................................................................................... xix 1. Introduction ................................................................................................................................. 1 Objective and Policy Significance ............................................................................................................ 1 Monetary Cost to Train International Pilots ............................................................................................. 2 Monetary Savings in Operations .............................................................................................................. 3 The Value of Interoperability ................................................................................................................... 4 Dissertation Outline .................................................................................................................................. 5 2. Background and Motivation ....................................................................................................... 7 Foreign Military Sales .............................................................................................................................