A proposal for implementation of commercial activity program in Republic of Korea: Army maintenance depot
Kim, Nak Heung
Kim, Jae Soo
Sovereign, Michael G.
McClain, John F. III
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This thesis examines the possibility of implementation of a Commercial Activity (CA) program in the Republic of Korea (ROK) military. For more than three decades in the U.S., a CA program has been executed to improve Government efficiency. The Office of Management Budget (0MB) Circular No. A-76 is the bible for that issue. Commercial Activity is defined as certain activities which are performed by public organizations that have enough well-developed civilian competitors. ROK Army depot maintenance is presented as a typical example of CA applied by in-house management and workers. The new Defense Resource Management System in the ROK military could provide the practical basis for CA concept implementation even though there are some barriers to use of cost data for the cost comparison. The authors believe that the implementation of a CA program in the ROK Army will improve defense budget efficiency (reduce budget requirements) and also generate additional positive effects such as improving combat supportability, increasing total combat power, contributing to national growth, and promoting civil-military relationships. Some limitations and recommendations toward implementing a CA are discussed.
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