Force Structure:

A-76 Not Applicable to Air Force 38th Engineering Installation Wing Plan

NSIAD-99-73: Published: Feb 26, 1999. Publicly Released: Feb 26, 1999.

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Pursuant to a legislative requirement, GAO provided information on whether the Air Force complied with relevant policy and congressional notification requirements in reaching a decision to deactivate the 38th Engineering Installation Wing (EIW) at Tinker Air Force Base (AFB), Oklahoma, focusing on: (1) the scope of the Air Force's planned action; (2) whether it is subject to the requirements of Office and Management Budget (OMB) Circular A-76 and 10 U.S.C. 2461; and (3) whether an analysis was completed to examine the cost-effectiveness of the planned action.

GAO noted that: (1) the Air Force plans to deactivate the 38th EIW, headquartered at Tinker AFB, Oklahoma, and transfer its wartime mission to the Air National Guard without increasing the Guard's authorized end-strength; (2) about 75 percent, or 1,752, of the unit's authorized positions will be eliminated, while 591 positions will be reassigned to existing or new organizations to assume responsibilities previously assigned to the 38th EIW; (3) these changes are expected to result in one-time savings of $33 million and annual recurring savings of $28 million; (4) the proposed action is a comprehensive restructuring of an active component unit, largely transferring its wartime mission to the National Guard; (5) it is not the type of action historically associated with OMB Circular A-76 and is not a conversion as envisioned under the circular; (6) accordingly, a cost comparison under that circular is not required; (7) likewise, the planned action is not a change in the performance from civilian personnel to contractor employees of the kind subject to the requirements of 10 U.S.C. 2461; (8) accordingly, the Air Force was not required to perform the cost study and provide congressional notification under that provision; and (9) at the same time, the Air Force's business case analysis supports the cost-effectiveness of the proposed action, with the reduction of a significant number of personnel.

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