Overseas Workload Program--Need To Assess Costs and Contributions

GAO reviewed the Air Force Logistics Command's (AFLC) management of its Overseas Workload Program to: (1) evaluate the program's contribution to enhanced aircraft readiness and sustainability; and (2) determine if items selected for overseas repair were improving aircraft availability, if shorter turnaround times were resulting in greater availability of parts, and if repair costs were reasonable.

GAO found that, in fiscal year 1984, the program encompassed 53 contracts valued at $167.3 million, and plans call for future increases. AFLC has not yet established a management system to evaluate program results and costs; consequently, it could not ascertain whether, or the degree to which, the program provided increased readiness and sustainability or whether it was cost-effective. Therefore, GAO was unable to evaluate the program's impact in terms of aircraft availability, parts availability, and cost reasonableness. At one air logistics center, GAO found that overseas contract repair costs for five of the seven items it reviewed were higher than U.S. repair costs, not including transportation costs. Other factors, such as the impact on the U.S. work force and increased contract administration requirements, also need to be considered in decisions to transfer the repair workload to overseas contractors. GAO found that AFLC management information systems contain the type of data needed to evaluate the program's results. Therefore, GAO believes that a system for managing and monitoring program activities should be developed. Since the Air Force has taken action to establish item selection procedures that emphasize an item's effect on aircraft mission capability and a monitoring system that provides repair information and cost effectiveness data, GAO made no recommendations at this time.