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<classification authority="sudocs">GA 1.13:T-NSIAD-96-148</classification>
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 <subject>Military downsizing</subject>
 <subject>Equipment maintenance</subject>
 <subject>Privatization</subject>
 <subject>Base closures</subject>
 <subject>Military bases</subject>
 <subject>Military cost control</subject>
 <subject>Base realignments</subject>
 <subject>Defense contracts</subject>
 <subject>Maintenance services contracts</subject>
 <type>Testimony</type>
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<titleInfo>
 <title>Defense Depot Maintenance: Privatization and the Debate Over the Public-Private Mix</title>
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<abstract>Pursuant to a congressional request, GAO discussed the privatization of
defense depot maintenance activities. GAO noted that: (1) the Department
of Defense&apos;s (DOD) evolving depot maintenance policy includes a
public-private mix and shifts work to the private sector where feasible;
(2) depot privatization could worsen excess maintenance capacity and
inefficiencies if not carefully managed; (3) DOD policy reports provide
an overall framework for managing depot maintenance activities and
substantial implementation flexibility, but the policy is not consistent
with congressional guidance on public-private competition for non-core
workloads; (4) privatizing depot maintenance is not likely to achieve
the 20-percent savings DOD projects, since most savings have come from
competition rather than privatization; (5) most depot maintenance
private-public competitions have been won by the public sector and
averaged fewer than two competitors; (6) DOD plans to privatize in place
and delay downsizing and closure of two air logistics centers will
probably cost more than closing them and relocating their workloads to
underutilized defense or private facilities; and (7) statues governing
competition and base closures may have to be repealed or amended before
DOD can proceed with its privatization efforts.</abstract>
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<identifier type="preferred citation">GAO/T-NSIAD-96-148</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Military downsizing</topic>
 <topic>Equipment maintenance</topic>
 <topic>Privatization</topic>
 <topic>Base closures</topic>
 <topic>Military bases</topic>
 <topic>Military cost control</topic>
 <topic>Base realignments</topic>
 <topic>Defense contracts</topic>
 <topic>Maintenance services contracts</topic>
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  <title>United States Code</title>
  <partNumber>Title 10 Section 2464</partNumber>
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  <partNumber>Title 10 Section 2469--two</partNumber>
  <partNumber>Title 10 Section 2469</partNumber>
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 <identifier type="USC citation">10 U.S.C. 2466</identifier>
 <identifier type="USC citation">10 U.S.C. 2469--two</identifier>
 <identifier type="USC citation">10 U.S.C. 2469</identifier>
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