Employment:

Relocation of AIR-630 From California to Washington, D.C.

PLRD-81-15: Published: Apr 2, 1981. Publicly Released: Apr 2, 1981.

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GAO was requested to inquire into the Naval Air Systems Command (NAVAIR) decision to relocate its Target and Range Systems Division (AIR-630) from Camarillo, California, to NAVAIR headquarters in Washington, D.C. In October 1980, NAVAIR stated that it had thoroughly reviewed the AIR-630 mission and operation and had determined that the move would reduce operational costs. The NAVAIR review showed an annual recurring savings of $234,000 and a maximum one-time cost of $560,000. NAVAIR officials said that the move would improve management efficiency. The Navy completed the relocation of AIR-630 in January 1981. GAO limited its review to the savings and costs identified by NAVAIR.

Although NAVAIR considered three alternatives for AIR-630, it did not compare the costs and savings for each nor did it quantify the expected improvement in management efficiency. GAO found that NAVAIR used incorrect information in computing the estimated savings, some recurring costs were not included, and the one-time cost was overstated. The organizational review did not contain a comparative analysis of the costs, savings, and management efficiencies for the alternatives considered in determining whether to transfer AIR-630 or to continue operations in California. Without such an analysis, GAO could not be sure that the least costly method of operation or the greatest management efficiency has been chosen. Accordingly, it is unable to make a specific recommendation concerning this relocation. However, GAO believes that some savings will result from the relocation. After NAVAIR approved the transfer, a proposed realignment plan and a staffing review were prepared to identify positions which would be saved by the consolidation. GAO believes that these actions should have been a part of the study before NAVAIR approved the transfer.

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