Navy Maintenance: Assessment of the Public-Private Competition Program for Aviation Maintenance

Highlights

Pursuant to a congressional request, GAO reviewed the Navy's aviation depot maintenance competition program, focusing on: (1) the nature and extent of past competitions; (2) whether savings resulted from the program; (3) the prospects for and impediments to future competitions; and (4) whether the program can be improved.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Defense	The Secretary of Defense should reinstitute public-private competition as a tool for allocating depot maintenance workload as quickly as possible.	Closed – Implemented DOD reinstituted public-private competition. However, it is not clear to what extent this process will be used. As of September 1997, the Navy had not announced any public-private competitions.
Department of Defense	The Secretary of Defense should develop and issue implementing guidelines regarding the conditions, framework, policies, procedures and milestones for reinstating public-private competition programs.	Closed – Implemented DOD reinstituted public-private competitions and has published some guidance regarding how these competitions should be conducted.
Department of Defense	The Secretary of Defense should require the Director, Defense Contract Audit Agency, to certify internal controls and accounting policies and procedures of DOD depots to ensure that they are adequate for identifying, allocating, and tracking costs of depot maintenance programs and to ensure proper costs are identified and considered as part of the bids by DOD depots.	Closed – Implemented DOD worked with DCAA to establish appropriate procedures.

Full Report

(48 pages)

Media Inquiries

Sarah Kaczmarek

Managing Director

Office of Public Affairs

media@gao.gov

Public Inquiries

Topics

Auditing and Financial Management

Aircraft maintenanceCompetitive procurementCost effectiveness analysisMaintenance costsMaintenance services contractsMilitary cost controlMilitary facilitiesNaval aviationNaval procurementPrivatization