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Navy Maintenance: Public/Private Competition for F-14 Aircraft Maintenance

NSIAD-92-143 Published: May 20, 1992. Publicly Released: May 20, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the Naval Aviation Depots' (NADEP) airframe repair program, focusing on the: (1) effects of introducing private-sector competition for depot maintenance on F-14 aircraft overhaul costs; (2) Naval Air Systems Command's (NAVAIR) post-award administration of the F-14 competition program; and (3) costs of competed and noncompeted overhauls during the same repair period.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy The Secretary of the Navy should direct the Commander, NAVAIR, to take appropriate steps, such as periodic progress meetings with key parties involved in competition efforts, to ensure that the new guidance on administration of competitive awards won by NADEP is successfully implemented and that all parties adhere to the guidance.
Closed – Implemented
NAVAIR Instruction 4200.35 has been revised to require that an administrative contracting officer and an on-site program support officer be designated to perform administration and oversight of the terms and conditions of the work assignment document, which serves as the controlling document for workload assignments to public activities.
Naval Air Systems Command The Commander, NAVAIR, should follow through on NADEP plans to modify the cost accounting system to allow labor and material costs to be tracked to individual work requests.
Closed – Implemented
The NAVAIR industrial financial management system was modified to allow labor and material costs to be tracked to individual work requests. The modifications were implemented at all depots on June 8, 1992, and training was provided to all depots on June 15 and 16, 1992.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVAIR, to issue policy guidance directing that the same administrative process be applied to both competed and noncompeted work.
Closed – Not Implemented
NAVAIR still plans to issue policy guidance but has not done so. This matter is being followed up during an ongoing review of competition under assignment code 709042.

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Topics

Auditing and Financial Management
Aircraft maintenanceCompetitive procurementContract administrationContract costsCost analysisFederal agency accounting systemsMilitary cost controlNaval aircraftNaval procurementRepair costs