Depot Maintenance: Planned Transfer of Industrial Plant Equipment from Seneca Army Depot
Abstract
As part of its depot consolidation effort, DOD decided to transfer Seneca's industrial plant equipment maintenance and rebuild work load to DLA's Defense Industrial Plant Equipment Center facility at Mechanicsburg, Pennsylvania. DOD believed that Mechanicsburg's costs for maintaining and rebuilding industrial plant equipment were less than Seneca's. Our analysis showed that DOD'S cost comparison was incomplete and a inaccurate and that rebuild costs at both facilities were actually very close. However, we believe the industrial plant equipment maintenance mission should be consolidated at Mechanicsburg because: Mechanicsburg has both greater rebuild capability than Seneca and excess plant capacity. It also has the plant capacity to absorb Seneca's work load, whereas Seneca does not have the plant capacity to absorb Mechanicsburg's. An ongoing $1.9 million construction project at Mechanicsburg will further enhance its capabilities. The quality of the work performed was not a factor in our decision since customers of both facilities indicated general satisfaction with the current work performed. Also, the need for both facilities is questionable since the work load for rebuilding industrial plant equipment is expected to decline over the next few years. Savings could be achieved by consolidating the work load at one facility. We estimate that the transfer of Seneca's industrial plant equipment mission to Mechanicsburg could save DOD up to $1.9 million a year and that DOD could begin to realize these savings in less than 2 years.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1992
- Accession Number
- AD1149624
Entities
People
- Carol L. Kolarik
- Edward M. Balderson
- Henry L. Jr Hinton
- Marjorie Adams
- William W. Cawood
Organizations
- United States Government Accountability Office