File:A comparative analysis of selected heavy equipment functions at the Naval Support Activity Monterey Bay and the city of Monterey, California (IA acomparativenaly1094513717).pdf

To meet continuing budget and personnel limitations and to fund weapons modernization, DoD is increasing its emphasis on outsourcing support activities to reduce costs and increase efficiencies. Recent studies suggest that aggressive outsourcing of support activities by the DoD could produce billions of dollars in savings. This thesis examines the applicability of outsourcing and partnering initiatives at the Naval Support Activity, Monterey Bay (NSAMB), and the City of Monterey, California to reduce selected heavy equipment management costs. To address this issue, a review of business practices and industry publications associated with vehicle fleet management, relevant financial and maintenance data from both entities, and semi-structured interviews with a total of 15 individuals from both organizations, were conducted. The findings indicate that NSAMB and the City of Monterey could benefit from a partnering arrangement for selected heavy equipment functions. However, organizational climate issues (i.e., employee trust) must also be considered when making the decision to outsource or partner. This study indicates that outsourcing and partnering initiatives may increase employee stress and distrust which must be managed concomitantly with cost reductions.