The Military Construction (MILCON) Program and Privatization: A Comparative Analysis
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH
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This study investigated the differences between military construction MILCON and Privatizationcommercial projects. Specifically, this study examined four areas of possible incongruity which impact cost administrative requirements construction standards contract clauses and the Davis-Bacon Act. Interviews were conducted with representatives from government and industry. Data gathered indicate the all four areas do cause costs to be higher on MILCON projects than projects accomplished in the commercial sector. The most significant findings resulted in the Davis-Bacon area. The Davis-Bacon Act requires that prevailing wages, as determined by the Department of Labor, be paid on all federal construction contractions over 2500. Data gathered in the Dayton, Ohio area indicated that prevailing wages exceeded commercial sector wages by 37 to 149 percent. The excessive wages cause federal government and military facilities to be substantially higher in cost compared to the commercial sector.
- Personnel Management and Labor Relations
- Civil Engineering
- Construction Equipment, Materials and Supplies