Joint Contracting for Depot Maintenance of Secondary Items.
Abstract
This audit was requested by the Joint Logistics Commanders and was performed as a joint audit effort under the auspices of the DoD Joint Logistics Audit Planning Group. The Naval Audit Service led this effort, with participation from the DoD Inspector General and Army and Air Force audit organizations. Joint contracting for depot-level maintenance involves having a contractor perform maintenance for more than one DoD component under a single contract administered by just one DoD component. DoD guidance emphasizes the desirability of joint contracting agreements between the Services to achieve the most cost-effective depot maintenance possible. The reviewed data files contained 5,643 separate maintenance contracts valued at $1.8 billion that were open as of the second quarter of FY 1997. The objectives of the audit were to determine opportunities for combining existing depot maintenance contracts into joint contracts, and to identify savings from increased use of joint contracts for depot maintenance. The Services did not identify and initiate actions to use joint contracts for depot-level maintenance. We determined that at least 3,479 contracts, valued at $ 1.2 billion, in our audit universe, involving multiple Services using the same repair facility or supplier, were candidates for joint contracting. Opportunities for joint contracting may also exist for repair of similar items. Since there were no current or historical examples of joint contracting agreements, we could not identify specific savings. However, we believe many opportunities for administrative efficiencies and economies-of-scale cost savings exist.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 04, 1998
- Accession Number
- ADA368180
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense