Impact of OMB (Office of Management and Budget) Circular A-76 on the Cost, Operational Readiness and Maintenance of Special Mission Ships in the MSC (Military Sealift Command) Nucleus Fleet

摘要

Office of Management and Budget (OMB) Circular A-76 is the policy for the government's privatization program. It is the general policy of the government to rely on commercial sources, whenever appropriate, to supply products and services needed. This policy has resulted in procedures for determining whether commercial type activities should be done in-house, using government personnel, or performed under contract with commercial sources. The procedures of A-76 are first to compel an activity to critically evaluate current operating procedures and manning level and then to solicit bids from the private sector for performing these functions. The purpose of Circular A-76 is to provide the most efficient operation at the least cost to government. The Navy's Military Sealift Command (MSC) has a force inventory of 126 ships, of which 73 belong to the Nucleus Fleet. The nucleus Fleet is made up of U.S. Navy Ships (USNS) which are owned and operated by MSC. Since the primary function of these ships is special mission, they are classified as activity-type ships instead of fleet support. In January 1984, MSC initiated cost comparison studies on activity-type ships in accordance with the OMB and Department of the Navy directives. Theses. (sdw)