Journal article // Social Development and Security






Methodical Approach to Account of Life Cycle Cost of Capabilities of Armed Forces of Ukraine (Organizational Structures and Governing Bodies)
2021  //  DOI: 10.33445/sds.2021.11.4.2
Oleh Semenenkо, Iryna Chernyshova, Petro Onofriychuk, Ivan Motrunych, Konstantin Kharitonov + 1 more author

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Abstract

Changes in the character of modern military conflicts, increasing external threats, changes in economic and military-technical conditions of Ukraine's development affect the range and content of tasks in which the Armed Forces (AF) of Ukraine are involved. This determines the search for new approaches to planning the development of the Armed Forces of Ukraine and creates the preconditions for the need to improve the existing system of defense planning in Ukraine in general. One of the ways to ensure the effective functioning of the modern defense planning system of Ukraine is the introduction of a method of planning based on capabilities and justification of costs using the concept of life cycle cost. In the article the authors propose a methodical approach to substantiating the cost of the life cycle of carriers of capabilities of the Armed Forces of Ukraine (organizational structures and governing bodies). Substantiation of the cost of organizational structures and governing bodies of the Armed Forces of Ukraine on the application of the concept of cost of their life cycle will increase the reliability of calculations on the expected result of measures to develop the capabilities of the Armed Forces of Ukraine and the necessary financial resources for their development. Specialists of the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine are invited to apply this approach when making decisions on forming options for the list of organizational structures and governing bodies of the Armed Forces of Ukraine and determining the duration of their existence. The proposed methodological approach to substantiate the value of the life cycle of carriers of capabilities of the Armed Forces of Ukraine can be the basis for solving problems of defense planning and management of defense resources to: determine the cost of a single carrier of capabilities of the Armed Forces of Ukraine; determining the cost of the stages of the life cycle of the carrier of the capability of the Armed Forces of Ukraine; determination of the full projected cost of the life cycle of the carrier of the Armed Forces of Ukraine in order to assess the feasibility of their creation, further development, disbandment or reformulation.

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