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Air Force Depot Maintenance: Budgeting Difficulties and Operational Inefficiencies

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Report Type Reports and Testimonies
Report Date Aug. 15, 2000
Report No. AIMD/NSIAD-00-185
Subject
Summary:

The Air Force's depot maintenance activity group, operating as a working capital fund that charges fees for services based on anticipated actual costs, provides depot repair services needed to keep Air Force units operating worldwide. For years, this activity has had difficulty accurately budgeting for material costs, workforce productivity, and savings to be achieved through productivity improvements and other reform initiatives. These difficulties have harmed financial operations, resulting in hundreds of millions of dollars in operating losses and limited delivery of timely support to customers. This report describes problems with inaccurate pricing, decline in worker productivity, and unrealized projected savings. GAO recommends ways for the Air Force to improve budget estimates and management of material costs and usage.

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