These studies suggest that their recommendations will achieve reductions in operating costs measured in billions of dollars.

Competition is the key to reducing costs. When the Navy opens up an activity in the shore infrastructure to competition, it results in savings of people and money. Studies have shown that across DOD, competition has generated savings averaging 30 percent.21 This result holds even when government entities win the competition. The Navy currently is planning to reduce 30,000 billets through competition over the next 10 years. This number represents only about 20 percent of the shore infrastructure. Over the next 30 years it would seem possible to double these savings.

21  

Marcus, A.J. 1993. Analysis of the Navy's Commercial Activities Program, VRM 92-226.10, Center for Naval Analyses, Alexandria, Va.



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