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State

Maine Military Authority Provides Budget Savings
By Mike Michaud
Jan 20, 2012 - 1:05:02 AM

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Congressman Mike Michaud has sent a letter to Defense Secretary Leon Panetta highlighting the good work being done in Limestone at the Maine Military Authority (MMA). Michaud urged Secretary Panetta to consider the high quality, cost-efficient and diverse work done at MMA as he looks at ways to trim military budgets in the years ahead.

"Our massive budget deficits require our country to cut costs and save money wherever we can," said Michaud. "The workers in Limestone do an outstanding job at refurbishing vehicles at a lower cost than facilities in other parts of the country. MMA's commitment to timely, high-quality, low-cost work has saved the National Guard alone more than $1 billion so far, and broader use of its services could result in greater savings for the Department of Defense."

The full text of the letter.

The Honorable Leon Panetta
Secretary
Department of Defense
The Pentagon
Washington, D.C. 20301

Dear Secretary Panetta:

As the Department of Defense (DOD) looks for ways to reduce the agency's spending, I want to call your attention to the cost-saving potential of refurbishing military equipment at the Maine Military Authority (MMA) in Limestone, Maine. Both the National Guard and the Army have achieved significant cost-savings through MMA's services, and their experiences demonstrate the budget-cutting benefits of MMA's recapitalization of tactical and non-tactical vehicles for DOD.

MMA's mission is to refurbish vehicles, equipment and component parts to factory-new specifications using cost-effective and labor-efficient methods that yield time and cost savings for their customers. Since 1997 they have refurbished more than 13,000 High Mobility Multi-Purpose Wheeled Vehicles (HMMWVs) for the National Guard Bureau's Readiness Sustainment Maintenance Program. In addition, MMA has recapitalized 1,500 HMMWVs for the Army (TACOM). MMA dismantles each HMMWV, rebuilds it to established standards, and then upgrades it to meet any additional specifications. All vehicles are covered by a one year bumper-to-bumper warranty and are considered nearly new after they are refurbished.

Refurbishing HMMWVs has yielded significant savings for the National Guard and the Army. The average cost for a refurbished HMMWV is $45,000-$50,000, compared to $140,000 for a new vehicle. Since the National Guard began relying on this program 15 years ago, they have saved more than $1 billion. The Army also saves between $7,000 and $10,000 per HMMWV refurbished by MMA compared to other facilities that perform the same work.

In addition to HMMWVs, MMA has refurbished a wide range of vehicles, including, but not limited to, 5-ton trucks, bull dozers, scrapers, backhoes, mobile laundry units, mobile kitchen trailers, buses, firefighting vehicles, and forklifts. Other facilities do not refurbish non-tactical vehicles, which makes MMA uniquely positioned to provide cost-saving recapitalization services throughout DOD.

As you continue to look for ways to cut the DOD budget, I urge you to consider the savings potential of MMA's high-quality, cost-efficient refurbishing capacity. The facility's commitment to timely, high-quality, low-cost work has saved the National Guard alone more than $1 billion so far, and broader use of MMA's services could result in greater savings for DOD.

Thank you for your consideration of this letter.

Sincerely,

Mike Michaud
Member of Congress


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