The Department continues to actively manage infrastructure and logistics in this era of changing national security requirements and shrinking forces, in order to improve long-term military readiness. As a result, DoD has made substantial progress towards attaining the appropriate balance between providing the proper level of services and support for the military forces and reducing unneeded overhead activities.
As in last year's report, a very broad definition of infrastructure and logistics is taken -- it includes everything, except for intelligence, that is not part of the operating forces. The areas of infrastructure and logistics described here are Force Management, Central Logistics, and Installations Support. The other areas are covered elsewhere in this report.
FORCE MANAGEMENT
Force Management includes the various headquarters organizations that provide guidance and direction to either the Department as a whole or to multi-Service organizations, and defense agencies, which are centralized organizations that provide a particular type of function or service to all elements of the Department. These are support functions that should be reduced in line with the drawdown in forces without impacting readiness.
Following the direction from last year's Defense Agency Review, the Department developed new civilian resource guidance for FY 1994-2001. This guidance accelerates and increases previously programmed reductions through FY 1999 and implements direction contained in the National Performance Review and the Federal Workforce Restructuring Act of 1994. DoD components have the flexibility to shift work years within their allocations to properly align resources and ensure operating forces receive the support and services required.
CENTRAL LOGISTICS
Managing Distribution and Inventories
The Department manages millions of items to sustain its weapons systems, support equipment, and facilities. It maintains extensive inventories in a network of supply depots. The management challenge for materiel management and distribution functions is to maintain or improve levels of support to military customers while drastically reducing the structure and overhead associated with delivering that support. In making management improvements, the Department will not lose sight of the prime reason for having a distribution system -- to give military combat units the equipment and support services they need when they need them. The Department's initial efforts focus on the following:
To wrap initiatives such as these into a coherent plan, last year the Department developed a Logistics Strategic Plan. The plan provides strategies for achieving more reliable, cost-effective, and prompt service while concurrently reducing the Department's infrastructure. Priorities in the plan have been included in the Planning, Programming and Budgeting System to obtain resourcing and permit oversight. The Department will assess implementation progress and update the plan later this year.
Depot Maintenance
REQUIREMENTS
The Department spends approximately $12 billion annually for depot maintenance of weapon systems and equipment. Workload, broken down by commodity, is shown in the following chart. Analysis by Service reflects the Navy possessing approximately 59 percent of the total DoD depot maintenance business base; Air Force, 27 percent; Army, 13 percent; Marine Corps, approximately 1 percent; and DLA, about 0.1 percent.
DEPOT MAINTENANCE CORE
In November 1993, the Department implemented a CORE methodology aimed at preserving the critical skills housed in the public maintenance depots. CORE is defined as the capability maintained within the organic defense depots to meet readiness and sustainability requirements for weapon systems that support Joint Chiefs of Staff (JCS) contingency scenarios. It is comprised of skilled personnel, facilities, and equipment necessary to ensure a ready and controlled source of required technical competence. CORE requirements are calculated by the Services in accordance with OSD-approved methodology designed to ensure consistency throughout DoD. The Services are well along in their efforts to identify and quantify the depot maintenance capabilities that are required to maintain their systems in a high state of readiness and to provide a robust surge capacity.
DEPOT MAINTENANCE TASK FORCE
In response to guidance contained in the FY 1994 National Defense Authorization Act, the Department chartered a Government/Industry Task Force on Depot Maintenance under the auspices of the Defense Science Board in January 1994. The report of this Task Force was forwarded to Congress in April 1994. The Task Force recommendations included:
The Department accepted most of the Depot Maintenance Task Force recommendations, but concluded that CORE should be viewed from an overall DoD perspective rather than on an individual Service basis. Actions to implement the task force recommendations regarding financial management improvements and performance of major modifications in the private sector have been initiated. The Government/Industry Depot Maintenance Task Force dissolved after completing its work and submitting its report and recommendations. However, a Defense Science Board Depot Maintenance Task Force has been established to continue the work to identify needed improvements and opportunities for reducing maintenance support costs in 1995.
DEPOT MAINTENANCE COMPETITION
As recommended by the Government/Industry Depot Maintenance Task Force, the Department has discontinued competitions for depot maintenance workloads. The task force and other studies and audits found that financial management and data systems of the Department and Services were not capable of supporting cost competitions for depot maintenance workloads. The Department is working to improve financial management and data systems to accurately and reliably portray costs of individual depot maintenance workloads. Intensive efforts are currently underway to develop financial management and data systems that will create a level playing field between organic depots and private sector sources. The success of these efforts is a prerequisite to reinstitution of depot maintenance cost competitions. In the interim, merit-based procedures are being used to support source of repair decisions for defense depots.
INTERSERVICING DEPOT MAINTENANCE WORKLOADS
The Department is aggressively pursuing opportunities to increase interservicing, whereby one Service provides depot maintenance support to another, particularly among fixed wing aviation depots. Interservicing of depot maintenance workloads is important in conserving resources and eliminating unneeded capabilities within the Department's depots. The Defense Depot Maintenance Council, chaired by the Deputy Under Secretary of Defense (Logistics) with senior logisticians from each of the Services, the Joint Staff, and the Director of DLA as members, oversees the interservicing program and gives a high priority to identifying opportunities for future interservicing actions. The goal of the Department is to size the depot maintenance infrastructure commensurate with the force structure it will support.
Logistics Business Systems Modernization
Significant progress has been made in developing, modernizing, and implementing standard automated information systems in the logistics business areas. These systems were designed using a process which modeled current practices, developed reengineered processes, and then reviewed existing defense and other public and private sector systems to achieve a modular approach to integrating and interfacing those best business practices which will provide functional process improvement across the Department. These systems and processes will support an annual logistics business cost of more than $44 billion, involving more than 2.2 billion transactions from more than 1,000 locations in the processes of acquiring, maintaining, and distributing an inventory valued at more than $77 billion.
This effort will standardize logistics data and processes across all components. Standard data facilitates implementation of technologically advanced automated support. Visibility and management of assets are enhanced through data sharing which is possible only in a standard data environment. High levels of data accuracy and reliability diminish the uncertainty under which major logistics business decisions are made. This approach will provide a major enhancement to the Department's operating efficiency and to the responsiveness of its support to the joint warfighters in the areas of materiel management, depot maintenance, distribution, transportation, and medical logistics.
Implementation of a standard materiel management system will make uniform the processes of inventory control, requirements determination, order processing, reparables management, and technical support. Development of the Materiel Management Standard System (MMSS) has been redirected from organic to private sector development. The major system developers for MMSS are now under contract, with implementation targeted for October 1996. Elements of the MMSS will initially be deployed in FY 1995 at the Warner-Robins Air Logistics Center (WR-ALC) in Georgia. Fielding a standard material management system to all DoD components will result in improved support to readiness, greater efficiency, phasing out approximately 150 legacy applications, and an estimated savings of some $14 billion through FY 2005.
Depot maintenance functions include project management for end item repair, production management for reparables repair, hazardous materiel management, tool control, facilities and equipment maintenance. Implementation of a standard depot maintenance system by all Services will result in faster return of weapons and equipment to the joint warfighters, increased economies through interservicing and joint use of maintenance facilities, phase out of approximately 100 legacy systems, and an estimated savings of $4.56 billion through FY 2005. Various applications of the Depot Maintenance Standard System (DMSS) have already been fielded and completion is scheduled for FY 1997.
Distribution depots receive, store, and issue DoD assets. The standard distribution system will be fully implemented by FY 1996 phasing out six legacy applications. The Distribution Standard System (DSS) is being developed by the Defense Logistics Agency which has the distribution mission for the Department. This effort is the centerpiece of the Logistics Standards Systems effort in terms of management and results. By the end of FY 1995, some 80 percent of all DoD distributions will be under the DSS. For a 5-year investment of about $190 million, savings of approximately $590 million will be realized by FY 2004.
The Defense Medical Logistics Standard Support (DMLSS) program (a joint effort of the Deputy Under Secretary of Defense for Logistics and the Assistant Secretary of Defense for Health Affairs) will integrate the logistics functions of medical materiel and services with commercial practices, provide more products and services faster for lower costs, and eliminate redundant maintenance and overhead of eight Service and DoD legacy systems. One segment of the DMLSS program, the Prime Vendor Program (Pharmaceuticals), has been implemented at 130 sites.
Further enhancing logistics business systems modernization is the Continuous Acquisition and Life Cycle Support (CALS) strategy. CALS, which uses integrated data through a set of standards to achieve efficiencies in business and operational mission areas of the Department, will enable DoD to accomplish new ways of doing business through weapons system programs, infrastructure modernization, and industry. These new business methods will be used for virtual enterprises, agile environments, integrated product and process development, and cross-functional information sharing. The expected results include a significant reduction in cycle time of a weapon system, increased readiness, decreased costs, and improved quality.
Two major prototype efforts have been approved for this fiscal year as an initial effort to evaluate the effectiveness of the CALS strategy as well as to create an integrated data environment (IDE) through the utilization of multiformat information. This is being accomplished via the use of existing programs, such as the MMSS, DMSS, DSS, the Joint Computer-Aided Logistics System (JCALS), and the Joint Engineering Data Management Information Control System (JEDMICS). The first at Warner-Robins Air Logistics Center involves the integration of the standard logistics systems and the various CALS components at WR-ALC. It is expected that these systems will be integrated and that the JCALS Global Data Management System (GDMS) will be exercised extensively as will the Configuration Management Information Systems (CMIS). These efforts will be integrated with the standard logistics systems in materiel management and depot maintenance as they are installed and populated at WR-ALC. The second effort in support of the Naval Sea Systems Command (NAVSEA) will expand the WR-ALC effort via the integration of multiple repositories, both internal and external to the DoD, providing access to the right technical data, in the right format to multiple users via the standard logistics systems.
Transportation
Transportation is one of the primary functions of the DoD logistics system and constitutes a significant portion of the system's total cost. In FY 1994, DoD's worldwide transportation program cost over $10 billion. This program supported the movement of material, personnel property, and the maintenance of transportation infrastructure services. Ongoing initiatives are achieving savings by reducing transportation costs, improving transit times, and reengineering transportation business processes.
The National Security Strategy requirement to sustain two nearly simultaneous regional conflicts, combined with a minimization of investment in war reserve inventory, has required DoD to cut inventories and distribute materials into common-user stockpiles to support multiple theaters. The capability to rapidly transport these stocks between theaters and maintain visibility of material in storage and transit is essential to the success of this new logistics doctrine.
A major transportation initiative and part of the Department's TAV effort is to achieve Intransit Visibility (ITV), the capability to identify and track the movement of defense cargo as it moves in unit deployments and redeployments along with tracking passengers, medical patients, and personal property from origin to final destination during peace and war. Currently, a prototype Global Transportation Network (GTN) system is being developed to support an integrated DoD ITV capability. Improving ITV translates into reduced procurements and inventories and a shorter pipeline. This will result in significant cost savings, but will place greater demands on the transportation system for expedited delivery. Building a unified, common-;user, TAV capability that reaches from the unit, depot, and vendor to the foxhole continues to be one of the Department's highest ongoing logistics priorities.
The Department of Defense relies on the commercial transportation industry to meet over 80 percent of its peacetime and wartime transportation requirements. The DoD is developing partnerships with the transportation industry to promote a better understanding of military requirements and commercial capabilities to allow for maximum utilization of industry's extensive intermodal capabilities. These partnerships will include best-value acquisition of transportation services, with a requirement for carriers to provide Electronic Data Interchange (EDI), Electronic Funds Transfer (EFT), and ITV.
Other transportation efforts that promise business process improvements and significant cost reductions are the Joint Transportation Corporate Information Management Center (JTCC) and the Defense Transportation EDI initiatives. The JTCC will standardize transportation migration systems to ensure that duplication in systems is avoided. The Defense Transportation EDI initiative is reducing manpower, time, and paper flow currently required for acquisition of and payment for transportation services. Finally, a review of transportation infrastructure is being initiated to ensure that the Department has in place and is maintaining at appropriate levels only the transportation infrastructure necessary to effectively support JCS peacetime and contingency requirements.
INSTALLATIONS SUPPORT
Meeting the Challenge of Installation Readiness
The responsibility for stewardship of defense installations is challenging in today's dynamic national security environment. DoD has a base structure which is still too large for the reduced force structure it supports. Infrastructure reductions resulting from the 1988, 1991, and 1993 domestic closure rounds have left a base structure that remains larger than is required. The context is also marked by declining facility conditions which adversely affect readiness. The Department's historical inability to renew its physical plant on a realistic schedule is having inevitable consequences. Most of DoD's facilities date from the 1940s, 1950s, and 1960s. Lower DoD budgets have forced priority setting among essential maintenance and repair projects, leaving managers with difficult, often uneconomical, choices between fixing critical problems and funding long-term preservation and cost-reducing projects.
Within anticipated funds, the Department's installation efforts are focused on achieving the following three objectives:
The Department's plans for achieving these objectives are described below.
Resizing the Base Structure
The base structure of the Department has not decreased commensurate with reductions in military forces. While significant progress has been made in reducing overseas base structure, domestic closures have lagged behind. The Secretary of Defense has made reducing the Department's unneeded infrastructure through domestic base closures and realignments a top defense priority. While there has been good progress so far, there is more that must be accomplished. BRAC 95 is the last round of closures authorized under public law. Significant reductions in infrastructure and overhead costs can be achieved only after careful studies address not only structural changes to the base structure, but also operational and organizational changes, with a strong emphasis on eliminating duplicative capabilities through increased reliance on inter-Service use of common support assets.
During the late 1970s and 1980s, DoD had been effectively stopped from closing domestic bases by a number of legislative requirements. To remedy this, Congress authorized the 1988 Defense Secretary's Commission on Base Realignment and Closure. This legislation provided a process in which the Commission -- rather than the Department -- made closure and realignment recommendations. The 1988 Commission consolidated a Cold War force level at fewer installations. In response to the decreasing world threat and declining defense budget, Congress authorized new Commissions in 1991, 1993, and 1995. These Commissions review (and can change) base closure and realignment recommendations made by the Secretary of Defense. In all cases, the President and Congress must accept or reject the Commission recommendations in their entirety.
There are three guiding principles to the Department's BRAC process -- improve military effectiveness, save money by reducing overhead, and conduct a fair and objective selection process. Balancing DoD base and force structures and preserving readiness through the elimination of unnecessary infrastructure are critical.
The 1988 Commission approved 16 major domestic bases for closure, plus a larger number of small sites. The 1991 Commission approved 26 major domestic closures, and the 1993 Commission approved 28 major closures. Together, the three Commissions will have reduced domestic base structure by about 15 percent (measured by plant replacement value). Table V-4 illustrates the current projected costs and savings anticipated for these three closure rounds as of the FY 1996 budget submission.
The BRAC selection process uses two fundamental building blocks to develop recommendations for domestic base closures or realignments -- the approved final selection criteria and the six-year force structure plan. The Services and defense agencies have established ad hoc executive level groups to perform detailed analyses and make recommendations to the Service Chiefs and Service Secretaries. Ultimately, those recommendations are provided to the Secretary of Defense for his approval before being submitted to the Commission. The Secretary's recommendations for BRAC 95 are due to the Commission by March 1, 1995.
The base closure process has evolved from lessons learned during the 1988, 1991, and 1993 processes. For 1995, the Department is putting greater emphasis on cross-service coordination and asset sharing, and has established five functional Joint Cross-Service Groups to review Depot Maintenance, Medical, Undergraduate Pilot Training, Test and Evaluation, and Laboratories. These areas are considered to have the highest interservicing potential. The Department has also created a Joint Cross-Service Group on economic impact to establish guidelines for DoD components to measure the economic impact of base closure and realignment alternatives, including cumulative economic impact from past BRAC actions. The group will also analyze DoD component recommendations under these guidelines and develop a process for analyzing alternative closures or realignments necessitated by cumulative economic impact considerations, if necessary.
In implementing base closures, the Department applies its experience from prior closure rounds. DoD helped develop the President's Five-Part Community Revitalization Program (discussed in the chapter on Economic Security) and is working on implementation policies which support the President's program.
The process of transitioning military bases into productive reuse is driven by three competing, but not mutually exclusive, goals:
Even in large cities, a military base often represents a significant economic stimulus for the local economy, and closure can be a serious blow to the local community. Traditional federal property disposal methods focused on maximizing proceeds from the sale of real and personal property with little regard for the prospect of local economic recovery. The President's revitalization program speeds the economic recovery of communities where military bases are scheduled to close. The new procedures from this program give increased priority to early reuse of the base's valuable assets to speed redevelopment and to create new jobs.
Supporting Readiness and Quality of Life
The Department faces huge challenges as steward of the world's largest dedicated infrastructure. Wisely managing a physical plant valued at about $570 billion and about 42,000 square miles of land roughly the size of the state of Virginia requires engineering insight, business acumen, and sufficient resources. Base closures and overseas disposals have significantly reduced that infrastructure and continue to influence the domestic scene. However, the Department must continue building new facilities required to relocate missions from bases designated for closure, replace uneconomical and deteriorated facilities, and support new or expanded missions.
The foremost facilities challenge for the Department is to rightsize the infrastructure based on the downsized force structure. As bases close, the emerging challenges are to tailor the remaining plant to support the Department's diverse missions and to modernize and adequately maintain those facilities needed to support long-term readiness of the remaining force.
The ability of defense facilities to support and enhance military readiness depends on the condition of those assets. Deteriorated facilities undermine readiness in two principal ways. First, deteriorated facilities are more likely to fail, and facility failures may directly compromise the mission. This was a lesson learned during mobilization for Operation Desert Shield. Dilapidated rail lines at several bases could not effectively move trains carrying equipment and supplies. Portions of aircraft runways failed due to repairs being deferred. One pier came dangerously close to collapsing during the off-loading of an aircraft carrier because repairs to the underwater structure had been postponed.
Deteriorated facilities also impair readiness by lowering the quality of life of military and civilian families, and lowering the efficiency of uniformed and civilian workers. Poor facilities and quality of life detract from retention of highly qualified and motivated personnel. Well constructed, properly equipped, adequately maintained facilities help to improve personnel performance. Thus good facilities are force multipliers; they enable and motivate forces to improve productivity without an increase in their numbers. A key focus area in military quality of life is family and bachelor housing. The facility initiatives being undertaken in this area are described in the chapter on Quality of Life.
The Department recognizes the link between facility conditions and readiness. As the last in the current series of domestic base realignments and closures are announced in FY 1995, DoD must revitalize its efforts to modernize its enduring facilities, replacing or repairing those that are in serious disrepair. Besides their adverse effect on the mission and people, deteriorated facilities are expensive. They require more maintenance, often on an emergency basis. They waste utilities since they typically lack energy-conserving systems and materials. They interfere with the mission since they often lack utility capacity to accommodate today's modern technical equipment.
At some enduring military installations, facility capacity, even after consolidations, may exceed anticipated requirements. Continuing to operate and maintain facilities which are not needed in the long term is bad business. The Services are identifying where excess capacity exists and which missions they could consolidate. If facilities are truly excess, the Services will dispose of or demolish them. This is expensive in the near-term, particularly when a facility to be demolished contains asbestos or other contaminants. However, consolidating missions and eliminating unneeded facilities saves money in the long run.
To provide high quality facilities in a way that balances near-term costs with optimal efficiency, the Services are designing new or revitalized facilities with the most up-to-date technological features. Value engineering during the early stages of a project's design frequently improves the quality and reduces the cost of new construction or repairs.
The Department routinely uses economic analyses and life-cycle cost studies in deciding among alternatives for acquiring, repairing, or replacing needed facilities. These analyses and studies help ensure the decision is not solely based on initial construction costs, but also on the lowest total cost of ownership. Life-cycle cost calculations include at least the costs for construction, utilities, maintenance, repair, and operations for the various alternatives.
The Department is also looking for opportunities to leverage its resources by using private sector capital to help finance critical needs for new housing and facilities or repair of existing assets. DoD is investigating a wide range of possible opportunities, some of which may require authorizing legislation.
Improving Installations Management
The concept of Excellent Installations management has a proven track record and will continue to be the cornerstone of the Department's effort to improve quality of life. This is reflected in an integrated facility management approach that is improving installation management policies, guidelines, and tools. The Department is developing and implementing a vigorous program of energy and water conservation. Complementing conservation, utility procurement policies are being changed to reduce the Department's annual energy bill by buying in bulk and taking advantage of rebates for demand reduction. Policy improvements are communicated with installation commanders each year at the DoD Installation Commanders' Conference. This conference and the Commanders' Forum give commanders and DoD policymakers an opportunity to discuss new policies and improve upon existing ones.
Broad authority has been given to installation commanders through DoD Directive 4001.1 to determine the best means of accomplishing their missions and to buy what they need from the source that provides the best product at the best price. Additionally, funding policies for support services are being changed to provide maximum incentive to commanders and managers to efficiently manage their mission and to use other governmental resources when effectiveness and efficiency would be served. Excellent Installations management is recognized annually with the Commander in Chief's Award for the best installation in each Service and the Defense Logistics Agency. Also, the ideas generated and lessons learned by the award winners are passed on to other commanders throughout the Department to help perpetuate excellence.
Achieving excellence in installations management requires integrating facility maintenance and investment decisionmaking. Installation commanders have traditionally developed facilities master plans to guide their capital improvement programs. Today there is a movement toward integrating these capital improvement programs with plans for maintenance and repair of existing infrastructure. One tool being developed for this is the Condition Assessment Survey, mandated by Congress. These assessments are designed to accurately define and analyze facility conditions and optimize maintenance funds for the best long-term benefits. Prototype testing of these surveys was completed in December 1994, and results are now being evaluated. Service-unique condition assessments also show promise. The Air Force developed a new Commander's Facility Assessment system and employed it to make priority investment decisions for the FY 1996 President's Budget. The Navy continues to refine its Base Reporting (BASEREP) system. The BASEREP has been employed for more than 10 years to link facility maintenance requirements with the commander's assessment of mission impact. The Army is fielding Installation Support Modules (ISMs) to provide installation staffs with effective automated management tools that are standard Army-wide. Starting in 1995 the ISMs will be part of the Army Sustaining Base Information Services that will reduce hardware/software costs and modernize the Army's sustaining base infrastructure.
The Department continues to seek more effective, less costly means of providing essential services at its bases. DoD's goal is to provide excellent, not merely adequate, services. One way of achieving this is through promoting competition among in-house work forces and private contractors. The evaluation of alternative means for providing essential services and the award of work to the best-value provider results in those services being delivered with more quality at a lower cost.
Another way of achieving excellence at less cost is to properly size facility resources which will remain after closures are accomplished. Demolition of facilities which are excess to needs and in poor condition will save repair, security, and energy costs. Attention will be focused on this in the next programming cycle. Opportunities may also arise to cancel leases or sell lands, after the required screening, which are no longer required by the Department.
The Department of Defense is also the largest centrally managed energy consumer in the United States. The Department consumes three-fourths of the energy used by the federal government. It costs nearly $3 billion each year to heat, light , and cool the 2.5 billion square feet of DoD floor space throughout 400,000 diverse buildings around the world. The Department cannot afford to waste energy nor allow its mission to become dependent upon imported fuels. Conversely, the scope of the Department's operation provides an opportunity to reduce government costs by nearly $1 billion each year once the necessary capital investments have been made.
The Department has a long history of leadership in energy cost containment through active participation in state utility regulatory proceedings. Increasing budget constraints will make such efforts and related emphasis of energy efficiency even more important in the coming years. Energy efficiency does not mean shutting off energy supplies, reducing the mission, or making people uncomfortable. There are many opportunities to use new technology that will, in fact, improve performance and comfort while reducing energy consumption and costs. For the most part, it requires a long-term strategy with investment today to save energy tomorrow.
The National Energy Policy Act and President Clinton's Executive Order 12902 are helping the Department focus on these energy-saving opportunities. Additional funds are being provided in the Department's budget for energy conservation, and the Department is reorganizing to provide additional emphasis and resources to accomplish the goals of the new legislation and executive order.
The primary energy goals of the Department are to reduce facility energy consumption by 30 percent and industrial energy consumption by 20 percent by the year 2005. In addition, DoD is required to identify and accomplish every energy and water conservation measure that has a payback of 10 years or less. Progress toward meeting these goals depends upon increased investment funding. The reduction goals are achievable and the Department is currently on track.
Installation managers are also challenged today to meet the cleanup, compliance, and conservation requirements from environmental mandates. DoD managers are looking for smart ways to achieve these goals, in some cases at a cost savings where pollution prevention technologies offer opportunities for resource reutilization. A full discussion of this topic is found earlier in Part IV of this report.
The Department has continued its efforts to ensure an appropriate level of infrastructure and logistics in relation to the reductions in forces. A shrinking base structure, aging facilities sorely in need of adequate maintenance and repair, and a dwindling defense topline make this a particularly challenging era. By implementing the initiatives explained above, the Department intends to properly size infrastructure and logistics, support readiness and quality of life, and manage its installation costs effectively and efficiently.
