A Cost Reduction Alternative for the Department of Defense Global Privately Owned Vehicle Contract

Abstract

Military members and Department of Defense (DOD) civilians who are assigned to overseas locations are entitled to store a Privately Owned Vehicle (POV) at government expense for the length of that assignment. Frequently, these vehicles are stored for three years or longer at a significant cost to the government. Additionally, the contract storage costs over a three or four year overseas assignment usually exceed the Fair Market Value of the POV. This Applied Systems Design Project will develop an alternative process, or a POV Incentive Option, that will give DOD the option to offer a member Fair Market Value for a particular POV in lieu of the member receiving their financial storage entitlement (at present, up to $310 per month, which equates to a maximum of $11,160 in POV storage costs over a three-year overseas assignment). The significant entitlement expense, and the growth in storage costs, gives this project a compelling business case at the same time DOD is aggressively seeking billions of dollars in efficiencies.

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Document Details

Document Type
Technical Report
Publication Date
Feb 02, 2012
Accession Number
ADA566221

Entities

People

  • Derek M. Oliver

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accounting
  • Business Administration
  • Commerce
  • Contractors
  • Contracts
  • Cost Reductions
  • Costs
  • Department Of Defense
  • Deployment
  • Finance
  • Governments
  • Law
  • Logistics
  • Organizational Structure
  • Systems Engineering
  • United States
  • United States Transportation Command

Readers

  • Government Contracting/Procurement.
  • Industrial Economics
  • Personnel Management and Statistics in the Military and Department of Defense