DoD depot-level maintenance : factors to consider in public/private competition

Abstract

Government arsenals and depots have traditionally provided DoD with a controlled source of depot-level maintenance capability. With the Cold War over and a shift in national priorities, DoD looks for cost savings and improved efficiency to save its shrinking budget dollars. As it looks for new ways of doing business, DoD looks to outsourcing as an option for depot-level maintenance, but is limited by statutory restrictions on such outsourcing. Both the policy and procedures remain hotly contested issues. When conducting the study to compete public and private capability, several factors and options should be considered throughout the overall process from the requirements determination to the final source selection. An important finding of this research is that particularly for new weapons systems, the Services are often rushing to outsource without considering life-cycle costs and other key factors. Recommendations to improve the process are to: establish a better definition of core, enforce life-cycle determination, make use of in-house excess capacity, maximize the use of partnering, improve training for those involved in preparing the in-house MEO estimate, outsource A-76 support, and continue to improve upon Government accounting procedures.