Financial Management

Disposal Cost

Disposal Cost consists of the expenses associated with demilitarization and disposal of a military system at the end of its useful life. Typically costs include: [1]

  • Collection/storage/disposal of hazardous materials and/or waste
  • Decontamination
  • Disassembly
  • Materials processing
  • Safety precautions
  • Transportation of the system to and from the disposal site

The intent of the use of the disposal cost category is to ensure that design and other decisions made early in the program consider their effects on the specific long-term disposal costs that can be logically attributed to the program. Disposal costs may be estimated and presented using the following categories, subject to tailoring for the circumstances unique to each program: [1]

  • Removal from Active Service
  • Demilitarization
  • Removal and Disposal of Hazardous Materials
  • Reclamation of Parts
  • Storage Final Disposal or Salvage


  • Disposal costs of a more general nature, such as the removal of unexploded ordnance at a training range, would normally not be attributed to a specific aircraft program that in the future may participate in training exercises at that range.

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Updated: 7/20/2017

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