The Eaker Institute for Aerospace Concepts

Defense Colloquium -- Outsourcing Update

On May 18, 1999, the Air Force Association’s Aerospace Education Foundation sponsored a Defense Colloquium called an Air Force Outsourcing Update featuring a presentation by Brig Gen Richard B. Bundy, Director the Air Force Office of Manpower, Organization and Quality, Deputy Chief of Staff, Plans and Programs

Outsourcing and Privatization continue to be important tools for Air Force program managers as they search for initiatives to reduce operating costs and preserve resources for modernization programs.

Based upon questions from the floor during the presentation, the following additional information was provided by Gen Bundy.

1. What total costs savings can we anticipate from utility privatization?

Utilities privatization was never intended to be a revenue generating initiative. Divesting ourselves of these operations (electricity, gas, water, and wastewater) allows us to focus on our core competencies. We plan to take the cash value associated with the sale of these utility assets in the form of needed repairs/modernization.

2. What savings have been realized after the Altus A-76 competition?

A complete assessment of the savings generated by this competition will not be fully realized until the end of the year. To date, 51% has been achieved in manpower savings alone.

3. What portion of your projected cumulative FY05 CS&P savings ($4.3B) includes reengineering?

$1.28B of our cumulative savings projection represents reengineering initiatives.