DOD Cost Savings in the Logistics Area

Military installations usually independently support themselves with services similar to those the local governments, utility companies, and the service industry segment of the civilian economy provide. Consolidating these military activities is the simplest way to save money. Activities within a convenient radius of each other could get together and let one agency handle the support services for all in areas such as repair, maintenance, security, vehicle operation, base supplies, purchasing, accounting, data processing, and others. The Department of Defense (DOD) has three programs aimed at reducing base support costs: (1) the Defense Retail Interservice Support Program (DRIS); (2) the military services' intraservice programs to consolidate support services within each service; and (3) a program to contract for support services from private industry. Some base support service reductions have been achieved. DOD has not consolidated base support services more because of the parochial interests at all levels, the lack of high-level DOD commitment, and the lack of coordination between the three programs aimed at reducing base support costs. The DRIS program has not been that effective because of a lack of DOD emphasis. DOD has not authorized any level to enforce the program's objectives. A stronger DOD commitment to the cost reduction program is needed to convince the military services that the program is worthwhile and to motivate them to act. A more systematic means of assessing the potential for intraservice consolidations and following up on their savings is needed. Potential savings have been lost because the most efficient in-house method of providing base support has not always been established. This has also resulted from a lack of coordination. The DRIS program is a logical organizational framework to provide visibility over the full range of DOD procurement opportunities and to coordinate cost reduction efforts on behalf of DOD. Such coordination can ensure that the best option is chosen in each case.