Relocation of the Navy International Logistics Control Office

LCD-77-310: Published: Dec 23, 1976. Publicly Released: Dec 23, 1976.

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The relocation of the Navy International Logistics Control Office from Bayonne, New Jersey to Philadelphia, Pennsylvania was reviewed. The review was limited to an analysis of the Navy's estimates of the savings and costs associated with the relocation. The Navy estimated that the relocation would result in annual savings of about $632,000 and one-time costs of $2.7 million.

GAO estimates are for annual recurring savings of about $341,000 and one-time costs of about $3.4 million. The primary reason for the difference is that GAO estimates are based on costs and savings to the federal government and the Navy's estimates are based on costs and savings to its budget. The Navy estimated that relocation would eliminate 15 civilian positions, saving about $184,000 annually; GAO estimate of this saving is $185,000. The Navy estimated annual savings for reduced communications costs at about $155,000; GAO estimates are for savings of $36,000. Annual savings of $544,000 for housekeeping costs were estimated by the Navy and $221,000 was estimated by GAO. The Navy's estimate for civilian retirement was overstated by $82,000. The Navy did not include an estimate of the government's liability for unemployment compensation as a result of the relocation. Costs for equipment relocation and space preparation were understated.

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