Outsourcing Options to Finance Navy Recapitalization PDF Download
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Author: Chad M. Brooks
Publisher:
ISBN: 9781423520955
Category :
Languages : en
Pages : 111
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Book Description
Navy leadership is searching for ways to finance urgent fleet recapitalization despite severely limited resources. This study exposes the enormity of the recapitalization challenge using budget forecasting and ratio analysis to frame potential trade-offs among major Navy appropriations that would achieve programmed procurement targets. The authors illustrate the organizational and operational challenges associated with even small trade-offs and also examine the increasingly common practice of competitive sourcing using private-sector risk criteria popularized in business literature. Their research suggests that current recapitalization goals are financially untenable without significant Defense restructuring. Using a Marine Corps rescission example, they show that implementing the trade-offs suggested by the analysis would challenge the very way DoD does business. However, they also find that the early success of Sea Enterprise in identifying business efficiencies offers the best promise for success. The authors caution that competitive sourcing must not be purely cost-driven, but rather a strategic approach to managing risk. They offer perspectives and considerations beyond the outsourcing roadmap currently provided by OMB Circular A-76. This study is intended for Navy leaders and other stakeholders who are evaluating the factors constraining fleet re- capitalization, considering the practical ramifications of looming financing decisions, and weighing the strategic and operational risks of competitive sourcing. (2 tables, 9 figures, 45 refs.)
Author: Chad M. Brooks
Publisher:
ISBN: 9781423520955
Category :
Languages : en
Pages : 111
Get Book Here
Book Description
Navy leadership is searching for ways to finance urgent fleet recapitalization despite severely limited resources. This study exposes the enormity of the recapitalization challenge using budget forecasting and ratio analysis to frame potential trade-offs among major Navy appropriations that would achieve programmed procurement targets. The authors illustrate the organizational and operational challenges associated with even small trade-offs and also examine the increasingly common practice of competitive sourcing using private-sector risk criteria popularized in business literature. Their research suggests that current recapitalization goals are financially untenable without significant Defense restructuring. Using a Marine Corps rescission example, they show that implementing the trade-offs suggested by the analysis would challenge the very way DoD does business. However, they also find that the early success of Sea Enterprise in identifying business efficiencies offers the best promise for success. The authors caution that competitive sourcing must not be purely cost-driven, but rather a strategic approach to managing risk. They offer perspectives and considerations beyond the outsourcing roadmap currently provided by OMB Circular A-76. This study is intended for Navy leaders and other stakeholders who are evaluating the factors constraining fleet re- capitalization, considering the practical ramifications of looming financing decisions, and weighing the strategic and operational risks of competitive sourcing. (2 tables, 9 figures, 45 refs.)
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 111
Get Book Here
Book Description
Navy leadership is searching for ways to finance urgent fleet recapitalization despite severely limited resources. This study exposes the enormity of the recapitalization challenge using budget forecasting and ratio analysis to frame potential trade-offs among major Navy appropriations that would achieve programmed procurement targets. The authors illustrate the organizational and operational challenges associated with even small trade-offs and also examine the increasingly common practice of competitive sourcing using private-sector risk criteria popularized in business literature. Their research suggests that current recapitalization goals are financially untenable without significant Defense restructuring. Using a Marine Corps rescission example, they show that implementing the trade-offs suggested by the analysis would challenge the very way DoD does business. However, they also find that the early success of Sea Enterprise in identifying business efficiencies offers the best promise for success. The authors caution that competitive sourcing must not be purely cost-driven, but rather a strategic approach to managing risk. They offer perspectives and considerations beyond the outsourcing roadmap currently provided by OMB Circular A-76. This study is intended for Navy leaders and other stakeholders who are evaluating the factors constraining fleet re-capitalization, considering the practical ramifications of looming financing decisions, and weighing the strategic and operational risks of competitive sourcing. (2 tables, 9 figures, 45 refs.).
Author: Michael D. McLean
Publisher:
ISBN: 9781423561484
Category :
Languages : en
Pages : 111
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Book Description
Department of Defense leaders plan to use outsourcing to reduce operations and maintenance spending and enable them to increase procurement and research and development spending. Even functions once labeled inherently governmental are now being evaluated for outsourcing in the quest to reduce spending. One such function is the Helicopter Combat Support (HC) Mission aboard Military Sealift Command (MSC) ships. This thesis evaluates service contract cost escalation rates and compares them to in-house cost escalation rates. Three Navy service contracts were evaluated, two aircraft maintenance contracts and one aircraft simulator maintenance contract. The purpose was to determine if the escalation rates differed enough to significantly affect DOD's ability to reduce spending through outsourcing. This thesis also determines the total in-house cost to perform the HC mission aboard MSC ships and evaluates commercial alternatives. The purpose is to establish the contract cost at which outsourcing this mission will result in long term cost reduction. This thesis found that service contract costs escalate faster than in-house costs in certain industries. This difference reduces or eliminates anticipated cost savings from outsourcing. The total in-house performance cost of the HC MSC mission was determined for two different options currently under consideration.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Many responsible elements of the Department of Defense (DoD), Congress, and the defense industry have expressed concern that the DoD, in downsizing and restructuring in recent years, is not cutting back on infrastructure, or non- combat elements, to a degree that is appropriate for the extent it is drawing down the combat force structure. Separately, proponents of the acquisition reform that is now under way question the need for DoD's maintaining as much infrastructure in-house as it has. Infrastructural elements are thus expected to get a more critical look in further rounds of budget-cutting. The Department of the Navy (DON) is undertaking such a critical examination-both to make appropriate preparations for the 1995 round of Base Realignment and Closure (BRAC) and to meet its need to make the best use of its resources for the longer term. In its examination, DON has divided its infrastructure into two parts. One part comprises research, development, and technology (RD & T); the other part comprises engineering, production, and support (EP & S). The purpose of this study is to offer analysis that will aid DON in its review of its RD & T infrastructure. More specifically, we present a framework for setting priorities for funding different lines of RD & T, and we offer our best application of that framework (Part I), we discuss ways in which the Navy might increase the efficiency and effectiveness of its RD & T investments-mostly through flexible insourcing and outsourcing strategies, which are sometimes collectively referred to as "smart buying" or "strategic sourcing." We use the term "strategic sourcing" (Part II).
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Contracting out
Languages : en
Pages : 32
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Book Description
Author:
Publisher: DIANE Publishing
ISBN: 1428978763
Category :
Languages : en
Pages : 32
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Book Description
Author:
Publisher:
ISBN:
Category : Logistics, Naval
Languages : en
Pages : 6
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Book Description
Author:
Publisher:
ISBN:
Category : Military planning
Languages : en
Pages : 308
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Book Description
Author:
Publisher:
ISBN:
Category : Military planning
Languages : en
Pages : 300
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Book Description
Author: Ronald O'Rourke
Publisher:
ISBN:
Category :
Languages : en
Pages : 145
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Book Description
Updated 12/10/2020: In December 2016, the Navy released a force-structure goal that callsfor achieving and maintaining a fleet of 355 ships of certain types and numbers. The 355-shipgoal was made U.S. policy by Section 1025 of the FY2018 National Defense AuthorizationAct (H.R. 2810/P.L. 115- 91 of December 12, 2017). The Navy and the Department of Defense(DOD) have been working since 2019 to develop a successor for the 355-ship force-level goal.The new goal is expected to introduce a new, more distributed fleet architecture featuring asmaller proportion of larger ships, a larger proportion of smaller ships, and a new third tier oflarge unmanned vehicles (UVs). On December 9, 2020, the Trump Administration released a document that can beviewed as its vision for future Navy force structure and/or a draft version of the FY202230-year Navy shipbuilding plan. The document presents a Navy force-level goal that callsfor achieving by 2045 a Navy with a more distributed fleet architecture, 382 to 446 mannedships, and 143 to 242 large UVs. The Administration that takes office on January 20, 2021,is required by law to release the FY2022 30-year Navy shipbuilding plan in connection withDOD's proposed FY2022 budget, which will be submitted to Congress in 2021. In preparingthe FY2022 30-year shipbuilding plan, the Administration that takes office on January 20,2021, may choose to adopt, revise, or set aside the document that was released on December9, 2020. The Navy states that its original FY2021 budget submission requests the procurement ofeight new ships, but this figure includes LPD-31, an LPD-17 Flight II amphibious ship thatCongress procured (i.e., authorized and appropriated procurement funding for) in FY2020.Excluding this ship, the Navy's original FY2021 budget submission requests the procurementof seven new ships rather than eight. In late November 2020, the Trump Administrationreportedly decided to request the procurement of a second Virginia-class attack submarinein FY2021. CRS as of December 10, 2020, had not received any documentation from theAdministration detailing the exact changes to the Virginia-class program funding linesthat would result from this reported change. Pending the delivery of that information fromthe administration, this CRS report continues to use the Navy's original FY2021 budgetsubmission in its tables and narrative discussions.
