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<classification authority="sudocs">GA 1.13:NSIAD-98-4</classification>
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 <subject>Naval supplies</subject>
 <subject>Military cost control</subject>
 <subject>Military downsizing</subject>
 <subject>Maintenance (upkeep)</subject>
 <subject>Maintenance costs</subject>
 <subject>Military vessels</subject>
 <subject>Naval aircraft</subject>
 <identifier>Navy Regional Maintenance Program</identifier>
 <identifier>Navy Working Capital Fund</identifier>
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<titleInfo>
 <title>Navy Regional Maintenance: Substantial Opportunities Exist To Build on Infrastructure Streamlining Progress</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Navy Regional
Maintenance (RM) Program, focusing on the: (1) progress made in
implementing the program; (2savings that have been achieved; (3)
opportunities for additional savings; and (4) barriers that inhibit full
implementation of the program and achievement of projected savings.&lt;p/&gt;GAO noted that: (1) the Navy has made progress in achieving its
infrastructure streamlining objective, but it has not been as great as
anticipated and challenges remain for accomplishing future plans; (2) to
implement the infrastructure streamlining objective, the Navy
established steering committees, initiated a phased execution plan,
identified a regional structure, and developed business plans; (3)
through fiscal year (FY) 1996, the Navy identified 102 initiatives, 55
of which had been started by the end of FY 1997, and 47 of which are to
be implemented between FY 1998 and 2001; (4) the Navy projected that its
102 initiatives would save about $944 million, of which $198 million was
expected to accrue during FY 1994 to 1997 and $746 million was expected
to accrue during FY 1998 to 2001; however, some of the initiatives are
not progressing as projected; (5) the Navy cannot identify actual
savings achieved because its accounting system does not track RM Program
costs and related savings, and the Navy did not establish an independent
system to track these costs and related savings; (6) the Navy has
opportunities to build on its progress by working to achieve the $746
million in expected savings during FY 1998 to 2001, moving more quickly
to implement savings initiatives, and pursuing other opportunities with
high potential for significant savings; (7) the Navy identified many of
its savings initiatives as high risk because of barriers to
implementation; (8) the Navy faces parochial and institutional
resistance to the RM Program&apos;s objectives and has other complex issues
to resolve; (9) the biggest hurdle to overcome may be resistance to
initiatives that eliminate organizations, reduce jobs and promotions, or
reduce a command&apos;s or organization&apos;s control over resources; (10) other
barriers are: (a) the lack of management visibility over all maintenance
related costs; (b) multiple, unconnected management information systems
that do not provide adequate data for regional maintenance planning and
decisionmaking; and (c) the large number of shore positions desired to
support the sea-to-shore rotation program compared to the smaller number
needed to perform the intermediate maintenance workload; and (11)
visible commitment by the Chief of Naval Operations (CNO) is critical to
overcome resistance, accelerate decisionmaking, and provide the
necessary resources and coordination needed for efficient and effective
program implementation.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-98-4</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/NSIAD-98-4; Navy Regional Maintenance: Substantial Opportunities Exist To Build on Infrastructure Streamlining Progress;
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<subject>
 <topic>Naval supplies</topic>
 <topic>Military cost control</topic>
 <topic>Military downsizing</topic>
 <topic>Maintenance (upkeep)</topic>
 <topic>Maintenance costs</topic>
 <topic>Military vessels</topic>
 <topic>Naval aircraft</topic>
 <topic>Navy Regional Maintenance Program</topic>
 <topic>Navy Working Capital Fund</topic>
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