DoD Supply Depot Consolidation: Preliminary Estimate of Savings
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA
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This report presents the results of an initial first-order assessment of the magnitude of savings associated with DoD-wide depot consolidation based on the latest information available and current system concept. Gross operational savings of 142 million to 260 million per year were identified, assuming that the consolidated depot system eventually will operate an current Defense Logistics Agency DLA unit costs. Moving to a common software system, the Defense Distribution System DDS, nets an additional 25 million to 43 million in yearly savings. Through greater utilization of DLAs Guaranteed Traffic Program, an additional 6 million in annual saving can be realized. Total recurring savings equal 173 million to 309 million per year. In addition, greater resource utilization due to depot consolidation eliminates the need for 342 million in planned military construction through FY 95. On the cost side, implementation of the DDS will require a one-time expenditure of 74 million, with and annual equipment maintenance cost of 2 million.
- Economics and Cost Analysis
- Computer Programming and Software
- Logistics, Military Facilities and Supplies