DOD Contracting

GAO assessed the decisions of Lowry Air Force Base (AFB), Columbus AFB, and the Navy to contract for aircraft maintenance services, focusing on: (1) projected cost savings; (2) the potential impact on personnel and equipment readiness; (3) the economic impact on the affected communities; (4) the impact on wartime mobilization requirements and personnel rotation schedules; and (5) other impacts on base functions.

GAO found that: (1) Lowry AFB would realize its projected savings of $3.4 million; (2) the Navy, which consolidated several air stations' aircraft maintenance requirements under two contracts, would realize most of its projected savings of $52.6 million; (3) Columbus AFB probably would not realize its projected savings of $4.2 million due to unsatisfactory contractor performance, and could incur additional costs in excess of those initially estimated for in-house maintenance; (4) most civilians obtained other government employment, and military personnel transferred, retired, or left the service; (5) both the Navy and the Air Force reported a minimal economic impact on the affected communities; (6) both the Navy and the Air Force reported no impacts on mobilization requirements or rotation schedules; and (7) loss of some of the personnel had a slight, but insignificant, impact on other base functions, such as commissary services and recreation facilities.