DEFENSE DEPOT MAINTENANCE: Contracting Approaches Should Address Workload Characteristics
Abstract
Depot maintenance involves the repair, overhaul, modification, and upgrade of weapon systems, vehicles, and other DOD items at DoD-owned facilities and private-sector contractor activities. The workload mix between the public and private sector has remained relatively constant for many years. DOD is seeking to contract out more of its depot maintenance requirements. The expectation is that increased competition for DOD'S depot maintenance work will produce substantial savings. In March 1996, DOD issued regulations directing that new systems and major upgrade programs "shall maximize the use of contractor provided, long-term, total life-cycle logistics support that combines depot-level maintenance along with wholesale and selected retail materiel management functions." DOD's approach to assuring product quality and fair prices for depot maintenance work that is contracted out to the private sector where competition is limited is through contract management and oversight requirements. This includes on-site inspections and record keeping and reporting requirements. The military services manage and oversee depot maintenance contracts with assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Command (DCMC). DCAA provides accounting and financial advisory services in connection with negotiating, administering, and closing out contracts. DCMC is DOD's principal contract oversight agency, which provides assistance ranging from evaluation of contractors' proposals to on-site monitoring of contractors' day-to-day operations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 15, 1998
- Accession Number
- ADA348165
Entities
Organizations
- United States Government Accountability Office