Should Aircraft Depot Maintenance Be In-House or Contracted? Controls and Revised Criteria Needed

FPCD-76-49: Published: Oct 20, 1976. Publicly Released: Oct 20, 1976.

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The relationship of the Department of Defense (DOD) two series of policies relating to the distribution of aircraft depot maintenance work loads between in-house (organic) and contract sources is unclear and has produced diseconomies in distributing depot maintenance.

The first series, applying to DOD commerical and industrial activites, recognizes a need for agencies to consider economies and mobilization readiness when deciding work distribution. Policy relating specifically to depot maintenance prescribes that maintenance will use both contractual and organic sources, establishing a maintenance mobilization base capable of quick expansion. Policy implication is that all nonmission related maintenance and 30 percent of the mission-related work should be contracted. None of the departments follow this policy, and DOD has no system of monitoring it.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The 70/30 work percentage policy should be reconsidered by assessing time needs for a mobilization surge, providing for the minimum capacity to meet the surge requirements, and relating the capacity to peacetime work loads; determining types of materiel maintained by organic sources; and determining cost application and mission essentiality application as distribution factors.

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