This thesis is an analysis if the flight hour cost program at the Pacific Missile Test Center (PMTC). The method by which PMTC computes aircraft flight hour rates is compared to the techniques used by the Naval Air Test Center and the Naval Weapons Center. A new approach to computing aircraft rates is proposed in this report. Using historical cost data, regression analysis is used to derive a rate per hour flown for fuel consumption. Based upon these data, no correlation exists between aircraft flight hours and aircraft parts costs. A decision support system (DSS) is also proposed herein to assist in the calculation of the flight hour rates. This DSS can also be used as a budget and as a vehicle to track program cost and schedule variances. It is recommended that a follow-on analysis be conducted to ascertain whether or not true correlation exists between flight hours and aircraft parts costs. Under the current budget system, funds for parts are requested per hour in the Navy and Marine Corps flying hour program.


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