Requiring the Use of Fully Burdened and Life Cycle Personnel Costs for all Components in Total Force Analysis and for Budgetary Purposes

Department of Defense, Office of the Secretary of Defense Reserve Forces Policy Board (2019)

This report urges DOD to adopt a standardized, comprehensive approach for calculating fully burdened and life cycle personnel costs across all components. It highlights continued gaps in cost accounting, especially regarding the Reserve Component. Using Fiscal Year 2018 data, the Reserve Forces Policy Board finds Reserve members cost less than one-third of Active counterparts when not activated. The report recommends annual cost reporting, development of a comparison model, and formal policy guidance to inform force mix decisions.