Opportunities for Savings Through Use of Spare Government-Owned Communications Circuits in Europe

B-161992: Published: Sep 22, 1967. Publicly Released: Sep 22, 1967.

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GAO reviewed the Department of Defense's (DOD) utilization of communications circuits in its European communications network.

GAO noted that: (1) the traffic carried by 64 of 228 communications cicuits leased from commercial carriers by DOD could have been routed over government-owned circuits having spare capacity at substantial savings; (2) the failure of DOD to route this traffic over government-owned circuits had resulted from DOD's policy of ascertaining the availability of government-owned circuits only before a commercial circuit was to be leased; (3) no reviews were made thereafter to periodically assess the availability of government-owned circuits; (4) GAO believes that the potential for these savings may have been revealed had periodic reviews had been made; (5) after discussing GAO's findings with DOD officials in Europe, 10 circuits leased at an annual cost of about $19,000 were cancelled; and (6) because of the expected establishment of the Automated Voice Network (AUTOVON), no additional leased circuits would be cancelled.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: Since the first AUTOVON switching centers are scheduled for activation no earlier than November 1968, significant savings can be realized by cancelling, where possible, those leased circuits whose traffic can now be accomodated on the government-owned circuits. The Department of Defense should study the 54 cicuits discussed in this report to determine which circuits can be cancelled now rather than reserved for future possible use in AUTOVON.

    Agency Affected:

 

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