Leasing as a Strategic Financing Option: The Navy's Maritime Prepositioned Ships Experience
Author
San Miguel, Joseph G.
Shank, John K.
Summers, Donald E.
Date
2008Metadata
Show full item recordAbstract
Recently, leasing has been prominent in the press due to the Air
Force’s recent ill-fated attempt to obtain the use of Boeing re-fueling
tankers. Forgotten is that, in the early 1980’s, a highly controversial Navy
long-term leasing program of Maritime Prepositioned Ships had a different
result. However, an unintended consequence of the Navy’s success was
that future government leases were practically eliminated. This research
examines the issues and parties involved in this unprecedented creative and
innovative leasing program for ships used by the Navy’s Military Sealift
Command. While the analysis concludes that the Navy’s leasing program
was successful and cost effective, laws and policies were changed so that
long-term leasing is no longer viable for the strategic financing of military
requirements. The case is presented here that existing laws and regulations
should be reconsidered so that leased military resources can once again be
used to provide and maintain national security.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.Collections
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