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Publisher: DIANE Publishing
ISBN: 9781422398661
Category :
Languages : en
Pages : 26
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Book Description
The Department of Defense (DoD) is currently implementing recommendations from the 2005 Base Realignment and Closure (BRAC) round, which is the fifth round undertaken by DoD since 1988. The 2005 round is, by GAO's assessment, the biggest, most complex, and costliest BRAC round ever, in part because, unlike previous rounds, the Secretary of Defense viewed the 2005 round as an opportunity not only to achieve savings but also to assist in transforming the department. GAO's testimony addresses the following: (1) GAO's role in the BRAC process, and (2) how DoD's current cost and savings estimates to implement the 2005 recommendations compare to the 2005 Defense Base Closure and Realignment Commission's (the Commission) cost and savings estimates. This testimony is based primarily on the report GAO issued yesterday (GAO-08-159) on the overall changes to DoD's cost and savings estimates for the 2005 BRAC round. To analyze these changes, GAO compared the Commission's estimates in its 2005 report to DoD's estimates in its fiscal year 2008 BRAC budget submission. This testimony is also based on several reports GAO has issued on the implementation of selected recommendations, and GAO's prior work assessing the 2005 decision making process. GAO's work was performed in accordance with generally accepted government auditing standards.
Author:
Publisher: DIANE Publishing
ISBN: 9781422398661
Category :
Languages : en
Pages : 26
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Book Description
The Department of Defense (DoD) is currently implementing recommendations from the 2005 Base Realignment and Closure (BRAC) round, which is the fifth round undertaken by DoD since 1988. The 2005 round is, by GAO's assessment, the biggest, most complex, and costliest BRAC round ever, in part because, unlike previous rounds, the Secretary of Defense viewed the 2005 round as an opportunity not only to achieve savings but also to assist in transforming the department. GAO's testimony addresses the following: (1) GAO's role in the BRAC process, and (2) how DoD's current cost and savings estimates to implement the 2005 recommendations compare to the 2005 Defense Base Closure and Realignment Commission's (the Commission) cost and savings estimates. This testimony is based primarily on the report GAO issued yesterday (GAO-08-159) on the overall changes to DoD's cost and savings estimates for the 2005 BRAC round. To analyze these changes, GAO compared the Commission's estimates in its 2005 report to DoD's estimates in its fiscal year 2008 BRAC budget submission. This testimony is also based on several reports GAO has issued on the implementation of selected recommendations, and GAO's prior work assessing the 2005 decision making process. GAO's work was performed in accordance with generally accepted government auditing standards.
Author: United States Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781983853548
Category :
Languages : en
Pages : 28
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Book Description
Military Base Realignments and Closures: Estimated Costs Have Increased and Estimated Savings Have Decreased
Author:
Publisher:
ISBN:
Category : Military base closures
Languages : en
Pages : 24
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Book Description
Author: Brian J. Lepore
Publisher:
ISBN:
Category : Military base closures
Languages : en
Pages : 21
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Book Description
The Department of Defense's (DOD) cost estimates to implement recommendations from the most recent Base Realignment and Closure (BRAC) round have steadily increased each budget year since 2005. Our review of DOD's fiscal year 2010 BRAC budget indicates that DOD plans to spend more to implement BRAC 2005 recommendations compared to last year's BRAC budget. DOD's estimated one-time costs to implement this BRAC round increased by almost $2.5 billion from fiscal year 2009 to fiscal year 2010, bringing the total implementation cost estimate for this BRAC round to $34.9 billion. To place this increase in perspective, in September 2005, the BRAC Commission estimated that it would cost DOD about $21 billion over the 6-year implementation period whereas this estimate is now about $35 billion, an increase of nearly 67 percent. Our analysis shows that over 80 percent of the estimated $2.5 billion in cost increases are associated with 10 recommendations. Military construction costs accounted for the majority of the increase, although other factors such as information technology requirements also contributed to some of the expected cost increases. After DOD implements all of the BRAC 2005 recommendations, which the department is required to do by the statutory deadline of September 2011, our analysis of DOD's fiscal year 2010 budget estimates shows that net annual recurring savings for fiscal year 2012 and beyond will have decreased by almost $94 million to about $3.9 billion, compared to DOD's estimates in fiscal year 2009. As we have previously reported, we believe DOD's net annual recurring savings estimates may be overstated because they include dollar savings from eliminating military personnel positions without corresponding decreases in end-strength. DOD disagrees with our position. The $3.9 billion estimate is calculated using DOD's method, which we nonetheless believe overstates savings. However, we included these estimates for consistency. Our calculations also show that BRAC savings DOD expects to generate over a 20-year period from 2006 through 2025 have declined to $10.9 billion in constant fiscal year 2005 dollars, compared to $13.7 billion that we reported based on the previous year's BRAC budget. To place this decrease in perspective, in September 2005 the BRAC Commission estimated that DOD would save about $36 billion, nearly 70 percent more, over the same 20-year period. We provided DOD with a draft copy of this report to obtain agency comments. DOD concurred with the findings of our report and these comments are reprinted at the end of this report.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 24
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Book Description
The Department of Defense's (DOD) cost estimates to implement recommendations from the most recent Base Realignment and Closure (BRAC) round have steadily increased each budget year since 2005. This BRAC round is the fifth such round undertaken by DOD since 1988 and, by our assessment, it is the biggest, most complex, and costliest BRAC round ever. With this round, DOD plans to execute hundreds of BRAC actions affecting over 800 defense locations and relocate over 123,000 personnel. Before it can realize savings from BRAC, DOD must first invest billions of dollars in facility construction, renovation, and other up-front expenses. To implement BRAC 2005, DOD plans to spend nearly $35 billion-an unprecedented amount, given that it has spent only about $25 billion to implement the four previous BRAC rounds combined. At the outset of BRAC 2005, the Office of the Secretary of Defense (OSD) indicated its intent to reshape DOD's installations and realign DOD forces to meet defense needs for the next 20 years. Moreover, both DOD and the BRAC Commission reported that their primary consideration in making recommendations for the BRAC 2005 round was military value. As such, instead of base closures, many of the BRAC 2005 recommendations involve complex realignments, such as designating where military forces returning to the United States from overseas bases would be located; establishing joint military medical centers; creating joint bases; and reconfiguring the defense supply, storage, and distribution network. The BRAC statute requires DOD to implement all BRAC 2005 recommendations by September 15, 2011.
Author: Brian J. Lepore
Publisher: DIANE Publishing
ISBN: 143791330X
Category : Technology & Engineering
Languages : en
Pages : 54
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Book Description
The 2005 Base Realignment and Closure (BRAC) round is the biggest, most complex, and costliest BRAC round ever. In addition to base closures, many recommendations involve realignments, such as returning forces to the U.S. from bases overseas and creating joint bases. However, anticipated savings remained an important consideration in justifying the need for the 2005 BRAC round. This report assessed: (1) challenges that might affect timely completion of recommendations; (2) any changes in DoD's reported cost and savings estimates since FY 2008; and (3) the potential for estimates to continue to change. Includes recommendations. Charts and tables.
Author: United States. Government Accountability Office
Publisher:
ISBN:
Category : Military base closures
Languages : en
Pages : 63
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Book Description
The 2005 Base Realignment and Closure (BRAC) round is the biggest, most complex, and costliest ever. DOD viewed this round as a unique opportunity to reshape its installations, realign forces to meet its needs for the next 20 years, and achieve savings. To realize savings, DOD must first invest billions of dollars in facility construction, renovation, and other up-front expenses to implement the BRAC recommendations. However, recent increases in estimated cost have become a concern to some members of Congress. Under the Comptroller General's authority to conduct evaluations on his own initiative, GAO (1) compared the BRAC Commission's cost and savings estimates to DOD's current estimates, (2) assessed potential for change in DOD's current estimates, and (3) identified broad implementation challenges. GAO compared the BRAC Commission's estimates, which were the closest estimates available associated with final BRAC recommendations, to DOD's current estimates. GAO also visited 25 installations and major commands, and interviewed DOD officials. Since the BRAC Commission issued its cost and savings estimates in 2005, DOD plans to spend more and save less, and it will take longer than expected to recoup up-front costs. Compared to the BRAC Commission's estimates, DOD's cost estimates to implement BRAC recommendations increased from $21 billion to $31 billion (48 percent), and net annual recurring savings estimates decreased from $4.2 billion to $4 billion (5 percent). DOD's one-time cost estimates to implement over 30 of the 182 recommendations have increased more than $50 million each over the BRAC Commission's estimates, and DOD's cost estimates to complete 6 of these recommendations have increased by more than $500 million each. Moreover, GAO's analysis of DOD's current estimates shows that it will take until 2017 for DOD to recoup up-front costs to implement BRAC 2005--4 years longer than the BRAC Commission's estimates show. Similarly, the BRAC Commission estimated that BRAC 2005 implementation would save DOD about $36 billion over a 20-year period ending in 2025, whereas our analysis shows that BRAC implementation is now expected to save about 58 percent less, or about $15 billion. DOD's estimates to implement BRAC recommendations are likely to change further due to uncertainties surrounding implementation details and potential increases in military construction and environmental cleanup costs. Moreover, DOD may have overestimated annual recurring savings by about 46 percent or $1.85 billion. DOD's estimated annual recurring savings of about $4 billion includes $2.17 billion in eliminated overhead expenses, which will free up funds that DOD can then use for other priorities, but it also includes $1.85 billion in military personnel entitlements, such as salaries, for personnel DOD plans to transfer to other locations. While DOD disagrees, GAO does not believe transferring personnel produces tangible dollar savings since these personnel will continue to receive salaries and benefits. Because DOD's BRAC budget does not explain the difference between savings attributable to military personnel entitlements and savings that will make funds available for other uses, DOD is generating a false sense that all of its reported savings could be used to fund other defense priorities. DOD has made progress in planning for BRAC 2005 implementation, but several complex challenges to the implementation of those plans increase the risk that DOD might not meet the statutory September 2011 deadline. DOD faces a number of challenges to synchronize the realignment of over 123,000 personnel with the completion of over $21 billion in new construction or renovation projects by 2011. For example, the time frames for completing many BRAC recommendations are so closely sequenced and scheduled to be completed in 2011 that any significant changes in personnel movement schedules or construction delays could jeopardize DOD's ability to meet the statutory 2011 deadline. Additionally, BRAC 2005, unlike prior BRAC rounds, included more joint recommendations involving more than one military component, thus creating challenges in achieving unity of effort among the services and defense agencies.
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Military base closures
Languages : en
Pages : 20
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Book Description
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 72
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Book Description
Since the BRAC Commission issued its BRAC costs and savings estimates in 2005, DOD will spend more, save less, and take longer than expected to recoup up-front costs for the SS & D and DLR recommendations. Over the 2006-2011 implementation period, our analysis of DLA's data indicates that estimated net savings will be reduced by more than $1.8 billion compared to the BRAC Commission s estimate, with a net cost of about $222 million to DOD, because of increased estimated costs, decreased savings, and DLA s inclusion in the business plans of almost $243 million in expected savings that we believe should not be counted as BRAC savings. The $243 million in savings were to be achieved from implementing inventory reduction initiatives that were not directly the result of BRAC actions and would have occurred regardless of BRAC. While DLA asserts that these particular savings were enabled by the BRAC process, we believe that including savings unrelated to specific BRAC actions distorts and effectively overstates projected savings from implementing the BRAC recommendations. Our analysis further shows that the projected net annual recurring savings for both recommendations beginning in fiscal year 2012 have been reduced from $360 million to approximately $167 million, and the expected savings over a 20-year period ending in fiscal year 2025 have been reduced from almost $4.8 billion to about $1.4 billion. While some variances with initial estimates are to be expected as plans are refined, the magnitude of these variances is large and has resulted from a number of factors, such as the use of inaccurate or outdated data, misinterpretation of terms and specific data, and changes in operational requirements that occurred during the decision-making process for formulating the recommendations.
Author: U S Government Accountability Office (G
Publisher: BiblioGov
ISBN: 9781289159788
Category :
Languages : en
Pages : 30
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Book Description
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) cost and savings estimates for past base realignment and closure (BRAC) actions, focusing on the: (1) extent to which DOD is achieving actual savings from BRAC; and (2) adequacy of the DOD process for developing the cost and savings estimates reported in its annual budget submissions. GAO found that: (1) its analysis of base support costs in the Future Years Defense Plan and at nine closing installations indicates that BRAC savings should be substantial; (2) however, DOD's systems do not provide information on actual BRAC savings; (3) therefore, the total amount of BRAC savings is uncertain; (4) if DOD does not fully achieve estimated BRAC savings, it will affect DOD's ability to fund future programs at planned levels; (5) DOD has complied with the legislative requirement for submitting annual cost and savings estimates, but there are limitations to the submissions' usefulness; (6) for example, the Air Force's savings estimates were not based on budget-quality data, and the Army's estimates excluded reduced military personnel costs that the Navy and the Air Force included in their estimates; (7) further, BRAC cost estimates excluded more than $781 million in economic assistance to local communities as well as other costs; and (8) consequently, the Congress does not have an accurate picture of the savings achieved by the BRAC process.
