Analysis of Maintenance Costing with Emphasis on Contracting Versus Using State Forces

About the report:

The authors present the findings of a study to develop a methodology for analyzing decisions of whether to perform ordinary maintenance, maintenance replacement, and incidental construction with state forces or to let them to contract. In developing the method, the authors interviewed resident engineers and examined the techniques most frequently used by the private sector in arriving at make-versus-buy decisions. In arriving at a decision to use contract maintenance, most resident engineers examine the magnitude of work, the time constraints faced, and whether the necessary state personnel and equipment are available. Routine cost analysis is not performed; thus contract maintenance has not been utilized to a significant degree as a manpower planning tool. The private sector, on the other hand, considers cost, quality of work, and quantity of work as major factors in make-versus-contract decisions. The methodology developed is depicted in flowchart form for easy application by decision makers in the budget preparation process.

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