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Army Depots: Plans Abandoned for the New Distribution Center at the Red River Depot

NSIAD-90-184 Published: Aug 20, 1990. Publicly Released: Aug 20, 1990.
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Highlights

Pursuant to a congressional request, GAO reviewed the Army's efforts to build highly mechanized distribution centers at three depots, focusing on: (1) the present work load at one depot compared to the Army's early projections; (2) the actual cost of that center; (3) the status of work at the three depots; and (4) the Army's rationale for completing one center, given the potential excess capacity at the other two centers.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Because only about $8.7 million of the $90 million in military construction and procurement funds allocated for the now cancelled Red River center have been expended, and up to $18.6 million may be needed to terminate existing commitments, Congress may wish to consider rescinding the remaining $62.7 million, $42 million in military construction funds and $20.7 million in procurement funds.
Closed – Not Implemented
Congress declined to rescind unused funds, but did direct the Department of Defense (DOD) not to use or transfer any of the money for any purpose other than termination costs for the Red River Center. This action precludes DOD from using the funds which was the intent of the recommendation.

Full Report

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Topics

Army facilitiesArmy suppliesIndustrial engineeringMechanizationMilitary cost controlMilitary facility constructionMilitary inventoriesProductivity in governmentProjectionsWarehouse facilities