Why Actual Costs of Military Construction Projects Vary From Their Estimates

GAO was asked to review the Department of Defense's (DOD) reprogramming of funds for military construction projects. It was pointed out that the DOD need for additional project funds above that initially appropriated was increasing. Specifically, GAO was asked to determine: (1) whether cost estimating procedures, including guidelines for inflation were adequate; (2) how the DOD actual costs for fiscal year 1979 projects compared to its budget estimates and how its experience compared to that of other Federal agencies; and (3) whether changes in legislative policy for reprogramming were warranted.