An Exploratory Study of Costs to Operate Government-Owned, Contractor-Operated (GOCO) Facilities
Abstract
During World War II, the U.S. Government recognized a need to expand the nation's industrial base. The government decision was to build production facilities and contract with private firms to operate them. In 1970 the Secretary of Defense issued a directive to sell many government facilities. As of 1980, 147 remained in government possession, being managed differently by each DOD component. The researchers sought to determine if management structure impacted upon operational costs of GOCOs. The researchers discovered that operational cost data were not readily available DOD-wide. A study of Army ammunition GOCOs was conducted to determine if sufficient correlation between costs of operating GOCOs could be found to justify the expense of data collection for hypothesis testing. The results of the study showed positive correlation between operation and maintenance costs of GOCOs and total costs of GOCOs. Production costs were not found to be significantly correlated to operation and maintenance costs. Evidence of a structural variable impacting upon production cost was found. The study recommended further study to refine the cost data, then further research into operational costs and management structure.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1981
- Accession Number
- ADA104854
Entities
People
- Mark L. Hodges Jr.
- William O. Bennett
Organizations
- Air Force Institute of Technology