The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Sunday, January 12, 1997              TAG: 9701110249
SECTION: BUSINESS                PAGE: D4   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                        LENGTH:   28 lines

NAVY MAY SHIFT 10,663 JOBS THIS YEAR

Work performed by more than 10,000 Navy employees will come under review as the service looks for ways to save money by shifting services to private business, a spokesman said Friday.

The Navy said many of the targeted employees work in areas ``in which a wide commercial market already exists, ensuring the maximum benefits from competition.'' The functions include motor vehicle maintenance, data processing and child care.

Of the 10,663 employees targeted in fiscal 1997, 8,403 are civilian. The review is a prelude to a larger initiative that could eventually reduce the Navy payroll by up to 50,000 civilian and 30,000 military positions.

Cmdr. Mike John, a Navy spokesman, said the Navy has no estimates on how much money would be saved because cost feasibility studies continue. No action will be taken until the studies are completed, and existing personnel will be given a chance to compete with private entities.

``We will have no conversions to commercial contracts unless the cost comparisons that are under way now reveal that the contracting method is the cost-effective way,'' John said.

KEYWORDS: U.S. NAVY JOBS


by CNB