PECI savings enables Eielson mission

  • Published
  • By Compiled Staff Report
  • 354th Force Support Squadron
EIELSON AIR FORCE BASE, Alaska --  The Air Force Productivity Enhancing Capital Investment Program has provided funding for numerous productivity improvement projects at Eielson Air Force Base.

PECI is a tool used to identify investment opportunities that provide measurable savings and produce a return on investments in two to four years.

The PECI program is intended primarily for leaders and people who are familiar with Eielson's day-to-day operations and mission said Scott Leppert, 354th Force Support Squadron manpower analyst and productivity manager.

"We are looking for people who can identify processes or functions to be streamlined by purchasing new equipment or providing extra equipment or upgrades," said Mr. Leppert. "Taking these kinds of measures adds a general cost-saving quality to [budgeting projects that help better conduct the mission]."

According to the Air Force Manpower Agency, the program has invested an average of $11 million while saving an average of $112 million throughout the lifecycle of productivity improvement projects. In 15 to 20 years--a project's average lifecycle--those savings can fund a wide variety of improvements.

According to Mr. Leppert, while the program may have a wide-range of applications, it becomes critical to understand how it works if it is to be used effectively.

The Air Force PECI program converts project savings into reserve funds for productivity improvement projects. These projects pay for themselves by compensating for their initial investment costs based on the savings they produce within two to four years. This allows the wing to invest more toward cost-saving initiatives, releasing funds for other mission needs.

For projects to produce measurable savings they must excel at reducing or eliminating recurring expenses, including resources such as electricity, water, ammunition or fuel. Fewer parts, reduced maintenance-related manpower and reduced general upkeep can also reduce recurring expenditures.

Ideal projects can mitigate or eliminate contract expenses for externally provided equipment or services. The Air Force can perform some functions more economically by purchasing equipment provided on a contract, thereby increasing a project's chances of becoming PECI eligible.

According to a wing manpower office report, in the last six years 13 projects have been submitted through PECI, saving Eielson $15.7 million with the installation's initial investment of $3.1 million. As a result, these PECI projects have not only paid for themselves, but remained cost-effective with an investment ratio of 5 to 1.

One such investment was the investment of a 50-ton crane for the 354th Civil Engineer Squadron. An initial cost of $563,178 saved $5,465,354 within 15 years. Prior to investing in the crane, Eielson had relied on a more expensive contract from the local economy.

"It was costing the installation a fortune to rent cranes," said Mr. Leppert. "Someone in the 354th Civil Engineer Squadron decided to use PECI. They bought a crane and a saved a lot of money."

The return on investment ratio of 10 to 1 allowed the installation to keep $4,902,176 for mission funding. Compared to Eielson's 5 to 1 investment ratio on all projects in the last six years, this project and others like it demonstrate how successful the PECI program has been in providing savings and the capability to operate within a limited budget.

"Cost-savings is this program's bottom-line," said Mr. Leppert. "It improves productivity and minimizes expenditures as much as possible."

To learn more about the AF PECI Program and how it can benefit your organization, contact the base PECI analysts located in the wing manpower & organization office at 377-IDEA.