Air Force Privitization-in-Place: Analysis of Aircraft and Missile Guidance System Depot Repair Costs

AGMC was closed as a result of a 1993 decision of the Base Realignment and Closure BRAC Commission. In recommending the closure of the Newark Air Force BaseAGMC, the Commission noted that the workload could be privatized or moved to other depot maintenance activities. The BRAC recommendation states The Aerospace Guidance and Metrology center AGMC depot will be closed some workload will move to other depot maintenance activities including the private sector. After the BRAC recommendation to close AGMC was finalized, 1 the Air Force moved a small portion of AGMCs Air Force workload to other Air Force depots, 2 the Navy moved most of its AGMC workload to other sites, and 3 the Army moved all of its AGMC workload to other sites. The Air Force decided to privatize in place the remaining AGMC workloads. At the time it made this decision, the Air Force relied on an analysis that estimated privatizing would save about 5 million in 1997. However, the preaward analysis was not documented and Air Force officials do not know the basis for the costs included. Consequently, the Air Force was not able to reconcile its current interim study to its precontract award analysis.