Cost Analysis of Dining Facilities

The Air Force is currently spending approximately $128M per year for food service contracts alone (Hamilton, 2008). These costs do not even account for the costs of labor, supplying food, maintenance contracts, or even utilities. With available annual dollars becoming smaller, the Air Force must examine its current processes and eliminate those which are not mission essential. The Air Force is currently testing new ways of providing meals for their enlisted members. In, 2009, several bases will begin using a swipe card system where airmen can use their swipe card to eat at any services operated facility. In addition, several bases have decided to close their dining facilities. Hanscom AFB closed their dining facility in 1999 and Andrews AFB estimates closure of one of their dining facilities will save an annual $1M. This thesis used a cost effectiveness analysis to evaluate the Air Force's dining facilities. It was found that at all four bases included in the analysis, a cost savings would be realized by closing dining facilities and paying all airmen BAS. The savings ranged from $420K to $4.6M annually and a total savings from all four bases totaling over $12.1M. With such a large savings possible by closing dining facilities, the option of closing base dining facilities should be strongly considered.