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Navy Maintenance: Assessment of the Public-Private Competition Program for Aviation Maintenance (Chapter Report, 01/22/96, GAO/NSIAD-96-30)

Pursuant to a congressional request, GAO reviewed the Navy's aviation
depot maintenance competition program, focusing on: (1) the nature and
extent of past competitions; (2) whether savings resulted from the
program; (3) the prospects for and impediments to future competitions;
and (4) whether the program can be improved.
GAO found that: (1) the Navy's public and private competitions have
resulted in some savings, but they are impossible to quantify; (2)
public depots substantially reduce the operating costs of competition
workloads by streamlining the production process and reducing overhead;
(3) the Navy did not reach its savings potential because of the time and
cost of competitions, declining depot maintenance workloads, and private
sector concerns; (4) the Department of Defense plans to increase
competitions to comply with competition legislation and to ensure that
privatization is cost-effective; (5) the cost, workload, and policies
surrounding competitions limit the number of competition programs; and
(6) improving the cost accounting systems for depot work will improve
competitions and identify the most cost-effective source for depot
maintenance work.
--------------------------- Indexing Terms -----------------------------
 REPORTNUM:  NSIAD-96-30
     TITLE:  Navy Maintenance: Assessment of the Public-Private 
             Competition Program for Aviation Maintenance
      DATE:  01/22/96
   SUBJECT:  Cost effectiveness analysis
             Naval aviation
             Military facilities
             Aircraft maintenance
             Maintenance costs
             Competitive procurement
             Maintenance services contracts
             Navy procurement
             Military cost control
IDENTIFIER:  F-14 Aircraft
             Tomcat Aircraft
             Orion Aircraft
             P-3C Aircraft
             DOD Defense Management Review
             F/A-18 Aircraft