National Defense:

Base Realignments and Closures

T-NSIAD-89-8, Mar 1, 1989

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GAO discussed its preliminary review of the Defense Secretary's Commission on Base Realignment and Closure's recommendations for realigning or closing military installations. GAO selected a sample of military bases, and found that the Commission's approach for selecting bases for closure: (1) was appropriate and consistent with its charter and provided a realistic, in-depth analysis of military base structure; and (2) had potential to enhance mission efficiency by realigning similar forces at each base. GAO also noted that: (1) the Commission's cost model was generally adequate, but included analytical and formulaic errors, improperly calculated military construction costs at realigned bases, and understated various costs for bases that were not recommended for closure or realignment; (2) the formula for calculating resale value of closed military bases was not based on fair market value, and did not consider the possibility of legal disposal at less than fair market value; (3) excluded such potential closure or realignment costs as the economic impact of closure on local communities, transfer and maintenance costs to other federal agencies, and environmental cleanup costs; (4) did not account for reserve support components and maintenance costs at retained facilities; and (5) used inaccurate data to estimate increased health insurance costs at closed or realigned bases for retirees and their eligible dependents.

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