Going private: military to expand outsourcing of weapons maintenance.

• Author: Erwin, Sandra I.
• Position: WASHINGTON PULSE: NEWS FROM INSIDE THE BELTWAY

Outsourcing military work to contractors has been under much scrutiny lately. The Obama administration has unleashed plans to curtail outsourcing and bring more work in-house. But one area where the practice is not likely to slow down is weapons maintenance. A recent Deloitte study predicts 50 percent growth in "performance based logistics," which is Pentagon-speak for contracts that the military services award to companies to support and maintain their weapons systems. The Defense Department has supported the use of PBLs as money-savers because contractors make much of the upfront investment in spare parts and tools, and the government only pays for services performed. PBL contracts have grown from $1.4 billion in 2001 to an expected...