Summary: Testimony was given concerning: (1) the status of Department of Defense (DOD) efforts to ensure that, if there is an outbreak of hostilities, essential overseas civilians who support military weapons systems and equipment are retained; and (2) the process of determining what depot maintenance activities will be performed by commercial contractors and the high cost of acquiring these services. DOD has become increasingly dependent on contractor personnel for support at overseas military installations, and there is concern that essential civilians working overseas in peacetime may not be willing to remain if the likelihood of war increases. Without civilian support, some important military systems and equipment would be seriously degraded or inoperative. GAO has recommended that DOD identify its essential and critical employees more effectively and tailor proposed solutions to the individual positions. GAO also believes that DOD should more effectively manage its commercial maintenance activities, and DOD criteria for determining the source of repair for military systems should be clarified. DOD should ensure that required services are obtained in a cost-effective manner, and efforts should be made to make commercial maintenance contracts more competitive. GAO has found that a lack of required resource capability has prolonged noncompetitive procurement of maintenance services and that basic ordering agreements and time and material contracts are frequently used for procuring maintenance services. GAO believes that these contracting methods should be reduced and, if there are no alternatives to a time and material contract, a greater degree of contract management should be undertaken by the Government.
