United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-10-29 monographic deposited born digital 19 p. GA 1.13:NSIAD-00-3 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-3 P0b002ee180381a93 f:ns00003 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-00-3 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-00-3 NSIAD-00-3 Defense cost control Aircraft engines Privatization Private sector practices Repair costs Maintenance costs Cost effectiveness analysis Warranties Letter Report NSIAD Pursuant to a legislative requirement, GAO provided information on the Department of Defense's (DOD) plans to develop a pilot program to use commercial sources to improve the collection of DOD claims under aircraft engine warranties, focusing on the: (1) benefits obtained by some private sector users of aircraft engine warranty services; and (2) efforts DOD has made the evaluate the feasibility of establishing a pilot program.<p/>GAO noted that: (1) some commercial airlines have benefited from the use of outside firms to identify failed engine parts and recover the cost of correcting such parts from manufacturers; (2) officials from the United Parcel Service, United Airlines, and America West told GAO that their engine warranty recoveries increased over internally identified recoveries when they supplemented internal efforts with an outside firm; (3) in one case, warranty recoveries increased threefold over recoveries identified internally; (4) to date, DOD has performed a limited review of the feasibility of establishing a pilot program, but has not established one; (5) the Army and the Navy made a limited assessment of a potential pilot program and concluded that it would likely not be useful to them; (6) they believe any additional claims that may be identified and amounts recovered would not be worth the anticipated cost to execute a pilot program; (7) the Air Force sought industry's interest in a pilot program by synopsizing the program's requirements in the Commerce Business Daily in November 1998; (8) however, the Air Force did not issue a request for proposals, in large part because of concerns that the program could not be executed in the 10 months remaining before authority to conduct a pilot program was set to expire on September 30, 1999; (9) concerns that contractors would not be paid after that date was also a factor; (10) experience from the private sector suggests that contracting for engine warranty administration can improve warranty recoveries over internal efforts; (11) this includes collecting claims on past engine repairs even though the warranties are no longer active; (12) however, it is unknown whether the results achieved by some commercial airlines can be replicated in DOD since a pilot program has not been implemented; (13) Congress recently extended the authority for a pilot program until September 30, 2000; (14) however, the additional time may still not be sufficient; and (15) this report suggests that Congress consider expanding the pilot program to test whether DOD could benefit from using commercial sources to increase recoveries on aircraft warranties. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-3/html/GAOREPORTS-NSIAD-00-3.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-3/pdf/GAOREPORTS-NSIAD-00-3.pdf GAO/NSIAD-00-3 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-3 Letter Report GAO/NSIAD-00-3; Contract Management: Pilot Program Needed to Improve DOD; Defense cost control Aircraft engines Privatization Private sector practices Repair costs Maintenance costs Cost effectiveness analysis Warranties Public Law 105-85 Public Law 106-65