Navy Maintenance: Improvements Needed in the Aircraft Engine Repair Program

Five Naval Aviation Depots overhaul most of the engines that power the Navy's airplanes and helicopters. In fiscal year 1989, the depots performed depot level maintenance on over 2,200 engines. This work generated revenues of about $243 million, or about 14 percent of the depots' revenues from all programs. The depots are industrial fund activities operating under the Naval Air Systems Command (NAVAIR). Industrial fund activities, established by the Department of Defense with the approval of the Congress in 1949, use working capital funds rather than annual appropriations to finance the cost of goods and services provided to customers. The customers use annual appropriations to reimburse these activities for work performed. The financial goal of industrial fund activities is to break even, that is, to cover costs without experiencing a gain or loss. The Navy's operating forces are the depots' primary customers for the engine repair program. On the basis of the needs of these forces, NAVAIR determines engine depot maintenance requirements and administers the repair program. (SDW).