AN ANALYSIS OF IMPROVING U.S. ARMY ORGANIC INDUSTRIAL BASE DEPOT COST AND EFFICIENCY
Colley, Mark D.
Torssell, Steven M.
Webster, Paul G.
Jones, Raymond D.
Butler, Brian, US Army TACOM
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Department of the Army Tank Automotive Command (TACOM) depots have been in existence since the 1940s. They are a vital piece of the nation’s defense strategy, providing assurance that Army ground combat and combat support equipment can be maintained and ready for war. The depots are legally required to ensure that this capability is not lost. The cost structure that the Army depots operate under is based on a combination of funding to include overhead, direct labor and various other costs. We examined how depot costs are structured and how the costs are applied across the depot spectrum. Many depot customers have the impression that the funding structure is not set up equitably, and that they could get better value by going to the original equipment manufacturers or other vendors for their depot needs. Based on the findings of this research, we conclude that by separately funding garrison operations, the true cost can be managed more efficiently and depot customers would see a reduction in costs to their programs. To test our conclusions further, we recommend this be initiated at one of the Army's depots and the results be analyzed.
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