O-080 Cost Benefit Analysis Studies of the Introduction of Insensitive Munitions: Is IM Cost of Ownership Cheaper?

As a response to the recommendations from the NIMIC Cost and Benefits Analysis workshop (Rimforsa, Sweden from 11th to 15th June 2001), NIMIC has now completed the development of the Cost Benefit Analysis Model (CBAM). The purpose of CBAM is to aid in the assessment of the costs and benefits of introducing IM into service. The CBA workshop participants generated a list of requirements for such a tool. These requirements have now been incorporated into the model, which is available to the NIMIC Nations.

As part of the validation exercise of CBAM, NIMIC has assessed the costs and the financial benefits of introducing IM for 2 different generic weapon systems:

• A short range air-to-air missile (attack helicopter)
• A 155-mm artillery ammunition (self-propelled howitzer)

This paper gives a brief presentation of CBAM and describes the studies (the hypotheses, the results and the conclusions) that were conducted using the tool. The evaluations of the most cost-effective IM signatures (munition responses to the IM tests) are presented and discussed for each of these examples. Limitations of Cost-Benefit analysis studies are also reported.