GAO approves Air Force public-private competitions

The Air Force picked the right winners of two multi-billion dollar public-private competitions for work at depots targeted for closing, the General Accounting Office concludes in two new reports.

GAO reviewed the competitions for work at California's Sacramento Air Logistics Center (NSIAD-99-124) and Texas' San Antonio Air Logistics Center (NSIAD-99-155). Both met legal requirements, provided an equal opportunity for public and private competitors regardless of location, properly considered factors other than cost, and picked the bidder that would cost the Defense Department the least, GAO found.

The closely monitored competitions ended with some of the work from the closing depots being transferred to other Air Force depots around the country, despite Clinton administration efforts to "privatize-in-place" the work at each of the depots.

The Oklahoma City Air Logistics Center at Tinker Air Force Base, Okla., won the San Antonio competition over Pratt and Whitney San Antonio Engine Services. Tinker's major subcontractor, Lockheed Martin, will perform about half the work at its San Antonio facilities.

The Sacramento competition went to Ogden Air Logistics Center at Hill Air Force Base in Utah. Ogden's major subcontractor, Boeing, will perform a portion of the work at its San Antonio facilities.

Members of Congress criticized the administration's privatization-in-place effort, saying it amounted to political meddling with the base closure process.

Though GAO suggested ways to improve the Air Force's cost estimating processes, auditors said the competitions generally provided the best value to the government. The Air Force estimates the San Antonio competition will save $1.8 billion over 15 years, while the Sacramento competition will save the service $638 million over nine years.