Depot Level Reparables: An Analysis of Current and Alternative Methods of Funding.
OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON DC
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The objective of the study was to evaluate the efficacy of alternative Depot Level Reparable DLR funding mechanisms. An alternative investigation was the combining of the funding of both new procurement and repair of DLRs in one appropriation. A second alternative envisioned the capitalization into the stock fund of existing DLRs with subsequent new procurement and repair of DLRs being funded by the stock fund. The study concludes that the stock fund is the preferred mechanism for financing the procurement and depot level repair of DLRs for the following reasons improved supply system discipline resulting from the buyer-seller relationship inherent in a stock funded environment vice the current free-issue procedure improved financial flexibility due to the ability to trade-off procurement and repair during budget execution improved budget forecasting due to shorter stock fund budget leadtimes and improved material support responsiveness due to the stock funds ability to respond to emergent requirement without the need for reprogramming action. Although the study concludes that the stock fund is the preferred financing mechanism, ADP procedural and financial management change problems must be overcome before the concept can be implemented. Accordingly, the study recommends a prototype implementation for non-aviation DLRs managed by the Navy Ships parts Control Center in Mechanicsburg, Pennsylvania. Author
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies