Air Force Depot Maintenance: Improved Pricing and Financial Management Practices Needed

Abstract

The Air Force's Depot Maintenance Industrial Fund (DMIF), which sold about $3.6 billion of maintenance services to its customers during fiscal year 1991, is supposed to break even on these sales. However, DMIF lost about $260 million during fiscal years 1988-91. In addition, the backlog of work it carried forward from one fiscal year to the next increased by half a billion dollars during this 4-year period. After several years of losses, DMIF reported a $150 million profit for the N-month period ending March 31, 1992. The Chairman, Subcommittee on Readiness, House Committee on Armed Services, asked GAO to (1) determine the reasons for DMIF'S losses, (2) evaluate the actions taken to eliminate them, (3) determine if DMIF customers' fiscal year 1993 budget requests include funds for work that is unlikely to be accomplished until fiscal year 1994, and (4) determine if the Air Force has an effective plan for implementing a Department of Defense (DOD) initiative to reduce depot maintenance costs.

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1992
Accession Number
AD1149637

Entities

People

  • Donald H. Chapin

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Air Force Facilities
  • Air Force Operations
  • Budget Estimates
  • Business Administration
  • Commerce
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Estimates
  • Cost Reductions
  • Department Of Defense
  • Employment
  • Finance
  • Financial Management
  • Governments
  • Lessons Learned
  • Maintenance
  • Personnel Management

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.