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<classification authority="sudocs">GA 1.13:NSIAD-97-185</classification>
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 <subject>Military vessels</subject>
 <subject>Naval personnel</subject>
 <subject>Civilian employees</subject>
 <subject>Merchant marine</subject>
 <subject>Military policies</subject>
 <subject>Military cost control</subject>
 <subject>Comparative analysis</subject>
 <subject>Cost effectiveness analysis</subject>
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<titleInfo>
 <title>Navy Ships: Turning Over Auxiliary Ship Operations to the Military Sealift Command Could Save Millions</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Navy&apos;s use of
alternative crewing arrangements for Navy auxiliary ships, focusing on:
(1) the Navy&apos;s plans for turning over the operation of military crewed
auxiliary ships to its Military Sealift Command (MSC) for civil service
or commercial crewing; (2) whether cost savings would be realized if the
Navy turned over the operation of the remaining military crewed
auxiliary ships to MSC; (3) the relative costs of operating a Navy
auxiliary ship with a civil service crew and the costs of operating the
same ship with a commercial crew; and (4) the increase in the merchant
mariner pool if the operation of the multiproduct ships were turned over
to MSC.&lt;p/&gt;GAO noted that: (1) the Navy plans to turn over the operation of its
remaining three ammunition ships to MSC for crewing with civil service
mariners; (2) as of May 1997, the Navy had not decided on whether to
turn over the operation of the remaining seven auxiliary ships as well
as the single ship under construction to MSC; (3) all eight of these
ships are multiproduct ships; (4) based on Navy cost data and MSC cost
estimates, the Navy could save about $139.6 million annually by turning
over the operation of these eight multiproduct ships to MSC for crewing
with civil service mariners; (5) this savings is due primarily to a much
smaller crew size than has been traditional on military crewed auxiliary
ships; (6) these savings would be offset by a one-time conversion cost
of $30 million to $45 million per ship, or about $300 million for all
eight ships, to meet Coast Guard standards; (7) MSC might also need
fewer ships to provide underway replenishment since unlike the Navy, it
does not have the personnel and operating limitations on the number of
operating days per ship and on days at sea per crewmember; (8) three
other studies conducted since 1990 by the Center for Naval Analyses, the
Institute for Defense Analyses, and the Naval Audit Service have also
identified the potential for large cost savings if the Navy were to
transfer additional ships to MSC; (9) these studies&apos; projected savings
were also primarily due to the smaller crew sizes on MSC ships; (10) the
Navy does not intend to divert from its current policy of not using
commercial mariners to crew auxiliary ships; (11) its position is that
these ships must be crewed by military or civil service personnel due to
their military mission; (12) however, if it were to change this policy,
GAO&apos;s analysis shows that it would cost the Navy about $321,000, or
about 5 percent more a year, to operate a commonly used MSC oiler ship
with commercial crews than with civil service crews; (13) the difference
in costs is primarily attributable to higher fringe benefit costs for
commercial crews; (14) with respect to the size of the mariner pool
under different crewing alternatives, GAO calculated that the pool of
U.S. civil service mariners would increase by about 1,700 merchant
mariners if the 8 remaining auxiliary ships were turned over to MSC and
were crewed by civil service mariners; and (15) the pool of commercial
merchant mariners would increase by about 2,700 to 3,400 mariners if
these same ships were crewed by commercial mariners.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-97-185</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/NSIAD-97-185; Navy Ships: Turning Over Auxiliary Ship Operations to the Military Sealift Command Could Save Millions;
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<subject>
 <topic>Military vessels</topic>
 <topic>Naval personnel</topic>
 <topic>Civilian employees</topic>
 <topic>Merchant marine</topic>
 <topic>Military policies</topic>
 <topic>Military cost control</topic>
 <topic>Comparative analysis</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Strategic planning</topic>
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