General Accounting Office (GAO) reviewed the Navy's analysis to support its December 1994 decision to move F/A-18 depot maintenance work from the Air Force Ogden Air Logistics Center, Ogden, Utah, to the North Island Naval Aviation Depot, San Diego, California. This report addresses (1) GAO's review of the Navy's analysis and adjustments for cost and performance comparability used to justify the decision to move its F/A-18 repair activities from Ogden to North Island, (2) our independent analysis using more current data than that available at the time of the Navy's decision, and (3) our analysis of the adequacy of guidance regarding the conduct of a merit-based analysis. The F/A-18 is a modem, first-line fighter and attack aircraft used by both the Navy and the Marine Corps. Each F/A-18 is periodically inspected to determine whether it needs to be sent to a depot for maintenance and repairs that cannot be performed at the squadron level. The depot maintenance specification for the F/A-18 is called the Modification, Corrosion, and Paint Program (MCAPP) and consists of inspections to identify needed repairs, the actual repairs, and the incorporation of needed aircraft modifications. Prior to fiscal year 1994, the Navy assigned all F/A-18 MCAPP work to the North Island depot. In an effort to minimize costs, the Navy decided in 1992 to subject its F/A-18 MCAPP maintenance to public/private competition. The competition package consisted of an expected quantity of 72 MCAPPS with minimum and maximum quantities of 36 and 90 MCAPPS in the first year, and options to continue the contract for up to 4 additional years. The minimum, maximum, and expected quantities were lower for each successive option year, and the estimated value of the contract if all options were exercised was about $61 million.


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