Defense firms' excess profitability by shifting common overhead costs from non-defense sector to defense sector in the award of cost reimbursement type of defense contracts is a widespread conclusion in prior researches. In this paper, we reviewed cost-shifting incentives in defense-contracting firms and extended the analysis of McGowan and Vendrzyk(2002) by applying modified model to Korea Defense Contracts. We formulated six hypotheses to test the relation of cost-shifting and excess profitability regarding market openness, auditing system, ranking in defense contracts, and firm types(sole defense contractors, sole non-defense contractors, and defense and non-defense mixed contractors). But, we could not find any evidence that defense firms shifted costs from non-defense sector to defense sector for the period 1997-2002. The results suggest that the excess profitability of Korea defense firms may not be from the cost-shifting but from other reasons.

The most portion of the Korean Army's ammunition management system has achieved efficiency and automation based on the Ammunition Information System (AIS). However, a few limitations for the automation system constructed at each site, exist in verifying the real time situation. At the present state of technology, the asset visibility of the located ammunitions is basically achieved. On the other hand, the ammunitions in the middle of transportation are difficult to achieve asset visibility. The RFID(Radio Frequency Identification) technology could be an appropriate solution in these circumstances. Therefore, the objective of this paper is to apply the RFID to improve defense asset management, total asset visibility and ammunition distribution efficiency in the ammunition management system of the Korean Army.

The previous studies approach the field artillery fire scheduling problem as deterministic and do not explicitly include information on the potential scenario changes. Unfortunately, the effort used to optimize fire sequences and reduce the total time of engagement is often inefficient as the collected military intelligence changes. Instead of modeling the fire sequencing problem as deterministic model, we consider a stochastic artillery fire scheduling model and devise a solution methodology to integrate possible enemy attack scenarios in the evaluation of artillery fire sequences. The goal is to use that information to find robust solutions that withstand disruptions in a better way, Such an approach is important because we can proactively consider the effects of certain unique scheduling decisions. By identifying more robust schedules, cascading delay effects will be minimized. In this paper we describe our stochastic model for the field artillery fire sequencing problem and offer revised robust stochastic model which considers worst scenario first. The robust stochastic model makes the solution more stable than the general two-stage stochastic model and also reduces the computational cost dramatically. We present computational results demonstrating the effectiveness of our proposed method by EVPI, VSS, and Variances.

As more advanced and complicated equipments are introduced, effective operation and maintenance, along with acquisition of the equipments, commands more significance lately. In order to perform effective depot maintenance, the Republic of Korea Army is continually developing the concept, cycle and method for operating the depot maintenance. Not only the high-cost testing and maintenance equipments but the highly developed maintenance technologies are required for the depot maintenance of the latest weapon system. In order to have the depot maintenance capability, this paper provides the standard and procedure for estimating the development cost of the depot maintenance elements to be utilized in the depot maintenance elements development project.

The main purpose of this study is to develop an watch duty scheduling focused on Korea Navy Ship, PCC class, in port. The watch duty scheduling is a type of a scheduling problem which both considers the readiness of the ship and fair duty for each person. In this study, we analyzed the personal ability and military occupational speciality and developed a manpower scheduling by using heuristic. We find an efficient and effective watch duty schedule which improved results.

Even though K-series combat equipment's engine depot maintenance cycle of ROK army is 10years In average, that of the K-9 Self Propelled(SP) howitzer which has been fielded since 99 $3{\sim}4$years causing limitations to effective equipment operations and combat-readiness. Therefore, the current K-9 self-propelled howitzer engine operation period of 1,500 hours, which is greatly shorter than other equipments, had to be verified. In order to find the optimum depot maintenance cycle, related field operation conditions were verified and opinions were collected, and also the background on current depot maintenance cycle setting was studied.

During the 'Cold War', DoD had focused on the high performance and timely acquisition which enabled quick field out the superior weapons than the enemy regardless of acquisition cost. But, after the cold war, the focus has been changed to the 'cost effective acquisition' of weapon systems because of tremendous investment cost & economic theory. The U.S. DoD has been tried to make 'the most effective acquisition system'(AR, Acquisition Reform) from mid-80's with their enough experienced program data, and as a result, they had launched the new acquisition procedure - DoD 5000 series - in 1996. DoD is continuously doing the study and making several improvements on the procedure after it had been once announced. On Oct 30. 2002, DoD noticed that they cancelled the DoD 5000 series documents(5000.1, 5000.2, 5000.2-R) and 5000.2-R will be reissued as a guide. The most recent version which focused on 1) evolutionary acquisition and spiral development, 2) procedure for future technology systems including software and IT, 3) supplement on the area of efficiency, flexibility, creativity and innovation of old system was issued by May 12. 2003. This article suggests a 'good idea' based on the reviewing of these DoD efforts for our defense acquisition regulation and procedure to go. It includes the CAIV concept application, IPT utilization, T&E method, cost or price based contract etc-all for the effective acquisition.

To ensure interoperability among TADILs, we need inter-operational system of tactical data link that allows sharing of specific, planned information among different TADILs. In this paper, we have proposed the design of a conceptual software architecture of inter-operational system. For developing of a conceptual software architecture, we analyze the actual condition of ADSI used in the US military and identify functions and quality-attributes. Based on these factors, we design the conceptual software architecture for inter-operational system of tactical data link using Attribute-Driven Design(ADD) method. ADD is consist of three phases - choose the module to decompose, refine the module, repeat the steps for every module that needs further decomposition. To evaluate of ADD results, we apply the Software Architecture Analysis Method(SAAM) which is consist of making evaluation scenarios, choosing indirect scenarios, evaluation scenarios' interaction, and creating an overall evaluation. Through the evaluation, we verify the conceptual software architecture of inter-operational system.