Can Depots Compete?

January 15, 1997

Can Depots Compete?

Federal union officials say the Air Force is making it difficult for its depots to compete with private companies for work at depots slated for closure, Federal Times reported this week.

The air logistics centers at Kelly Air Force Base in Texas and McClellan Air Force Base in California, which include maintenance depots, are slated for gradual closure through 2001. The center at Robins Air Force Base in Georgia will compete for work now done at Kelly and the center at Hill Air Force Base in Utah will bid on work now done at McClellan.

But restraints on depot competition favor private companies, union officials say. Only one depot can compete for the work at a closing center and the winning depot cannot use the facilities that are there, though private companies can.

Private companies have some restrictions of their own, including the "60/40" rule, which mandates that 60 percent of all depot work be performed by public employees. The Pentagon is seeking to overturn that rule.

The Clinton Administration delayed the Base Realignment and Closure Commission's 1995 recommendation to shut down Kelly and McClellan until the year 2001 to prevent massive layoffs that would hurt the economies of the areas around the bases. The Administration prefers a strategy of "privatization-in-place," under which a private company would move on to a base slated for closure and take over its operations.

A recent General Accounting Office report found that privatization-in-place at the depots would cost $200 million more a year than simply closing the depots and transfering the work to other facilities.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.


When you download a report, your information may be shared with the underwriters of that document.