Depot Maintenance:

The Navy's Decision to Stop F/A-18 Repairs at Ogden Air Logistics Center

NSIAD-96-31: Published: Dec 15, 1995. Publicly Released: Dec 19, 1995.

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Pursuant to a congressional request, GAO reviewed the Navy's decision to move F/A-18 depot maintenance work from the Ogden Air Logistics Center to the North Island Naval Aviation Depot, focusing on the cost and performance indicators used to justify the move of F/A-18 repair activities from Ogden to North Island.

GAO found that: (1) it is difficult to compare F/A-18 modification, corrosion, and paint program cost and performance data at North Island and Ogden because the Navy does not use the most current information when making adjustments for the amount of work completed at each depot; (2) based on its analysis, Ogden's maintenance costs are slightly lower, but the Department of Defense's (DOD) decision to retain F/A-18 repair capability at North Island is more cost-effective for workload consolidation efforts; and (3) DOD needs to define the steps, processes, analyses, and validation procedures for its future depot-maintenance decisions.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: DOD agreed that guidelines describing merit-based selection procedures would be developed. After conducting a series of meetings that included government and industry representatives, the Office of the Secretary of Defense issued policy direction regarding the conduct of public-private competitions on May 2, 1997, and is expected to issue additional guidance after evaluating lessons learned from the first public-private competition conducted since this process was reinstated in 1996. Additional guidance was issued by the Defense Contract Audit Agency.

    Recommendation: The Secretary of Defense should develop and implement guidance on using merit-based selection procedures when moving depot workload as prescribed by title 10 U.S.C. 2469.

    Agency Affected: Department of Defense

 

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