(b) Investment Costs - the frequency of work is not high enough
to justify the cost of high priced equipment/tools required to accomplish the
(c) Availability of Skills - certain work requires an unusual or
high degree of skill that is not possible to maintain in-house.
(d) Contractor Specialists - as a result of a high volume of
business, in certain cases a contractor is able to provide a particular
service more economically than government forces.
(e) Workload Peaks - funding variables and customer requests
frequently result in workload peaks. Contractor effort may be used to
maintain stable workload patterns.
(f) New construction, alteration, and repair that is not
incident to maintenance.
FACTORS INFLUENCING IN-HOUSE ACCOMPLISHMENT. Many items of work in the
facility support classifications lend themselves to contracting since the work
is often repetitive and easily specified. This permits Navy personnel to
concentrate on work in the following categories:
a. Workload Specification Difficulty. The nature of some work is so
undefined, before the actual need arises, it is difficult to specify in a
b. Time Factors. Certain categories of work require prompt attention.
Unless the shore activity already has a contract in operation permitting
negotiation or specifying this type of work, in-house performance is probably
more timely. This is particularly true when workload specification might be
vague as in the support to some types of research effort. However, the time
factor criterion is only valid if the problem could not have been reasonably
foreseen and planned for.
C. No Satisfactory Commercial Source Available. Either no commercial
source is capable of providing the needed product or service, or use of such a
source would cause unacceptable delay or disruption of an essential program.
d. Support to Other Functions. Functions such as direct fleet
operational support could be such an integral part of other work requirements
that it is not desirable to obtain the service by contract. Approval must be
obtained from CNO to exempt studying work of this nature. All work classed as
Commercial Activities under OMB A-74 must be studied eventually. No CA work
currently accomplished by the in-house work force can be contracted without
study. However, if the function is sufficiently small (10 labor years), a
full-scale cost comparison study is not required. Under these circumstances,
the function could be contracted using a limited cost comparison procedure
which is simpler and quicker than the full procedure required for large
e. The necessity for obtaining security clearances for contractor
personnel would cause unacceptable delays.