MBA Professional Report; Fleet Readiness Center Southwest (FRCSW) conducts maintenance on various aircraft platforms. In addition to regular aircraft overhauls, FRCSW has the capacity to perform aircraft modifications, which are currently completed by contractors. This project examines why the FRC's are not getting more CH-53E modification work when they have the capacity and capability to complete the work. This project uses FRCSW as a case study to address the issue. Interviews were conducted with the heads of Multi-line Division within FRCSW in San Diego, California and the Commander of FRC's and the H-53 Assistant Program Manager for Logistics at Naval Air Systems Command (NAVAIR), Patuxent River, Maryland. The results of these interviews provided an assessment of the actions taken to reduce inefficiencies and non-value added activities and insight into how NAVAIR selects between contractors and FRC's to complete modification work. The data reveal that FRCSW has the capacity to complete modification work on CH-53 aircraft without schedule slippage. Also, a comparison of labor rate, schedule, and location of work, demonstrates how much more expensive FRCSW is and why NAVAIR chooses the lower cost contractor to complete modification work.