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GAO-11-274R 1 (2011-02-11)

handle is hein.gao/gaobaanwj0001 and id is 1 raw text is: GA 0 Accountibiity I ntegrity Reliability United States Government Accountability Office Washington, DC 20548 February 11, 2011 The Honorable Kay Bailey Hutchison United States Senate Subject: Depot Maintenance: Air Force Is Assessing Engine Maintenance Options for Work Currently Performed at Kelly Aviation Center Dear Senator Hutchison: This report responds to questions that you raised about Air Force engine maintenance and repair work currently performed at Kelly Aviation Center (KAC) and the potential transfer of that work to another location. In 1999, Oklahoma City Air Logistics Center (OC-ALC) awarded a contract to KAC to perform work, including depot-level maintenance, repair, and overhaul on TF39 engines, which are typically used for C-5 Galaxy aircraft; T56 engines, which are typically used for C-130 aircraft; and fuel accessories on these engines. The Air Force estimates the total expenditure under the contract for this work to be $3.7 billion from February 16, 1999, through December 1, 2010. The contract is not to exceed 15 years (the contract had an initial 7-year ordering period that could be extended to 15 years or reduced to 5 years based on performance), and will expire not later than February 15, 2014. The Air Force will need to determine how to conduct the engine maintenance work after the term of the contract ends. You requested that we review the potential transfer of the engine maintenance and repair workload from KAC. Our objectives were to determine (1) the extent to which the Air Force has identified the costs and benefits of possibly moving engine maintenance for selected aircraft from KAC and (2) the steps the Air Force has taken and plans to take to mitigate any potential aircraft readiness risks that might occur if the work is moved. To conduct this work, we reviewed related laws, policies, and other guidance for selecting maintenance depot sources of repair, conducting cost-benefit analyses, and mitigating risk. We also reviewed documents (including the current KAC contract, workload-related information, and other memorandums) and identified the factors (including depot workload, maintenance facility capacity, costs, and benefits) to be considered and the processes to be used in determining best value to the government in selecting the depot-level source of repair. We compared depot-level source-of-repair and cost-benefit analysis criteria to the Air Force's procedures and plans for determining the source of repair. In addition, we reviewed the documents and information on four examples where the Air Force has experience mitigating risk when depot-level maintenance work has been transferred from or performed at a single site. We compared risk mitigation analysis criteria to the Air Force's efforts to assess risk associated with GAO-11-274R Defense Maintenance Page I

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