Incentive Contracts: Taking the Guess Work Out of Setting Fleet Aviation Consolidated Allowance (AVCALS)
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Over the years in an attempt to create cost savings, the Navy has changed its ways of determining parts allowances. Originally, the Navy used Demand Based Allowancing, in which parts allowances were assigned based upon Original Equipment Manufacturer recommendations, and fleet demand. In the late 1980s, the Navy changed its parts allowancing to Readiness Based Sparing. During this same time, the parts managers at the Navy Inventory Control Points ICPs have received reduced funding for parts support. As a result, parts have been transferred from one deploying unit to the next deploying unit. This thesis studied the possibility of using incentive contract types in an attempt to ensure the allowances provided to the fleet are accurate and meaningful. Additionally, the use of an incentive-type contract can be used to ensure the parts required to fill the assigned allowances are available to the fleet at Material Support Date MSD. This study conducted a comparative analysis of past post MSD and present at MSD weapon systems to identify costs and benefits associated with the use of incentive-type contracts. Lastly, this study identified a system that has not reached MSD future which could possibly benefit from an incentive-type contract.
- Administration and Management
- Logistics, Military Facilities and Supplies