A COMPARATIVE ANALYSIS FOR THE USMC: LEASING VERSUS PURCHASING FOR A NOVEL AUTONOMOUS LOGISTICS SYSTEM

With a shift in the strategic direction of the Marine Corps due to the 38th Commandant’s Planning Guidance, should the Marine Corps shift the way it procures the systems necessary to execute Expeditionary Advanced Base Operations and Littoral Operations in a Contested Environment, namely in the procurement of a novel autonomous logistics system (ALS) that provides middle-mile logistics in a military environment? This thesis attempts to answer the following questions: Should the Marine Corps seek to procure commercial ALS via outright purchase, lease, or a hybrid of the two models? What is unique about commercial ALS that would bias a lease-versus-purchase decision one way or the other, and which aspects of such systems in the analysis could translate to similar analyses of other potential Department of Defense (DOD) systems? What are the likely challenges to a lease-based business model, and what drawbacks will need to be addressed or alleviated by the DOD and by private industry? The research includes literature and legal review, case study analysis, and comparative analysis of procurement methods. A fictional operational vignette is used to ground and explain the comparison. The recommended procurement course of action is a hybrid model, starting with a trial lease period in partnership with a manufacturer, that allows the Marine Corps to test, utilize, and analyze all aspects of a commercial ALS before deciding on a long-term business model to implement across the force. Captain, United States Marine Corps Approved for public release. Distribution is unlimited.