Outsourcing facilities management: a comparative analysis between the private sector and Department of the Navy

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Authors
Luz, Christopher J.
Subjects
Advisors
Fremgen, James M.
Owen, Walter E.
Date of Issue
1996-12
Date
December, 1996
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
Because of a level DoD budget and the need to modernize the force, DoD is seeking ways to shift some operation and maintenance (O&M) dollars into procurement programs. One way to do this is through outsourcing. This thesis compares the costs of performing facility management functions within the Navy at NAS Miramar and of outsourcing these functions to private contractors at NAS Fallon. The purpose is to determine if a significant cost difference exists between the two bases. Actual facility management costs were obtained from both NAS Miramar and NAS Fallon for fiscal years 93-96. An area adjustment was made to the cost data at Fallon because of the higher cost of living in San Diego compared to Fallon, Nevada. The thesis also addresses how the Navy deals with nonfinancial factors, such as quality and performance, in an outsourcing situation. The areas studied in facilities management include (1) the operation and maintenance of buildings, utilities, and vehicles; (2) maintaining environmental quality; (3) administration and formulation of contracts; and (4) management support. The study found outsourcing was cheaper in three areas, in- house was cheaper in five, and the costs were similar in one area over a 4-year period.
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Thesis
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xii, 85 p.
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Approved for public release; distribution is unlimited.
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