Defense Acquisitions: Further Action Needed to Improve DOD's Insight and Management of Long-Term Maintenance Contracts
Abstract
DOD spends billions annually to maintain its weapon systems and, at times, uses long-term maintenance contracts with a potential period of performance of 5 years or more. These contracts can encourage contractors to invest in new facilities, equipment, and processes, but may hinder DOD's ability to incentivize contractors' performance and control costs, especially in the absence of a competitive environment or if DOD does not acquire access to technical data that can enable DOD to select an alternative maintenance provider. GAO was asked to evaluate (1) the extent to which DOD uses long-term maintenance contracts, (2) DOD's ability to select alternative maintenance providers, and (3) how these contracts have been structured to incentivize performance and manage cost. GAO reviewed a nongeneralizable sample of 10 long term contracts to illustrate different maintenance approaches. GAO interviewed program officials and reviewed contract documentation. GAO also reviewed information on eight programs recently reviewed by DOD to determine how these programs addressed technical data needs.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2012
- Accession Number
- AD1150051
Entities
People
- Belva M. Martin
- Cary B. Russell
Organizations
- United States Government Accountability Office