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B-165613 1 (1971-05-04)

handle is hein.gao/gaobaafku0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE j// '/6 WASHINGTON, D.C. 20548 DEFENSE DIVISION MAY 4 9fl B-165613 The HonorablellII/jI)lIlIIIIIIIIIIliiiiiiii The Secretary of Defense LM095668 Attention: Assistant Secretary of Defense (Comptroller) Dear Mr. Secretary: We have completed a review of thee. P,-~y marine maintenance program in Southeast Asia.1 We compared the cost of the Army's prac- (t-I -ot level maintenance by contract with the cost of performing the same type of maintenance at the Naval Ship Repair Facility, Subic Bay, Philippines. We also compared the effi- ciency of the Army contractors and the Navy repair facilities in performing maintenance assignments. As a result of a reduction in 7th Fleet maintenance requirements, the Naval Ship Repair Facility at Subic Bay can now perform Army depot marine maintenance presently being performed under contract at comercial shipyards. Our review showed that, if the Army con- tract maintenance was transferred to the Navy repair facility, marine maintenance costs in Southeast Asia could be reduced by approximately $2 million for fiscal year 1972. Other benefits would accrue to the Department, such as improved operafional effi- ciency and use of resources, as well as a reduced flov of dollars to foreign countries. Army officials in Okinawa responsible for the contract mainte- nance program agree with our findings and have stated that it would be both feasible and economical to shift the Army contract mainte- nance workload to the Naval Repair Facility at Subic Bay. Their only reservation to the use of the Navy shipyard was that the Army vessels would be given a lower priority than Navy ships. Navy officials acknowledged that top priority would be given to fleet vessels; however, they stated that, with good planning, the Army watercraft maintenance program could be accomplished without compromising Navy requirements. Navy officials believe that the additional Army workload would result in more effective uge of resources. 50TH ANNIVERSARY 1921-1971

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