The private sector triumphed in the latest Defense Logistics Agency public-private competition for depot work, agency officials announced Friday.
Operations and management of the Defense Distribution Depot in Barstow, Calif. (DDBC) will be contracted out to EG&G Logistics, of Manassas, Va.
"The tentative decision was made after a detailed study indicated it was more cost effective to convert to the private sector," DLA said.
Employees have 15 days to appeal the decision. After the appeal process is completed, the total number of jobs being outsourced can be released, DLA officials said. Currently, the depot has 126 employees.
A team from DDBC put together a most efficient organization plan (MEO), as required by the public-private competition process governed by Office of Management and Budget Circular A-76. The MEO essentially serves as the government employees' bid to keep their jobs.
"While we hoped our MEO would win, I have complete confidence in the process and basic tenets of OMB Circular A-76, that the best decision for our customers and the taxpayers was reached," said Lt. Col. James A. Kessler, commander of DDBC.
DDBC is the second in a series of 16 public-private competitions being held by DLA. The first depot to complete the competition process, in Columbus, Ohio, announced in November that its operations would remain in-house.
The California depot stores and distributes large tactical vehicles and equipment, tests and repairs nuclear, chemical and biological equipment, and provides support to several co-located Marine, Army, Navy and Coast Guard customers.
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