Military Construction:

The Letterkenny Army Depot Retrieval System

NSIAD-87-112BR: Published: May 21, 1987. Publicly Released: May 21, 1987.

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In response to a congressional request, GAO examined the funding and acquisition of the Automated Storage and Retrieval System at the Letterkenny Army Depot to determine if the Army properly classified it as an equipment procurement, rather than a construction project.

GAO found that the Army: (1) originally determined that the Department of Defense's definition of construction did not apply to the facility because it would neither stand alone nor form a separate building useable for other purposes; (2) incorrectly continued to classify the facility as an equipment procurement despite design changes, which required the construction of an individual building with other possible uses; (3) improperly charged funds to the Army Industrial Fund Capitalization Program; and (4) should have used available military construction appropriations.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: After an extensive investigation and legal review, the Acting Assistant Secretary of the Army (Financial Management) notified the OSD Deputy Comptroller (Management Systems) that a $1.8 million antideficiency violation had occurred at the Letterkenny Army Depot. The notification noted that corrective actions had been taken against the officer responsible for the violation.

    Recommendation: The Secretary of the Army should take the administrative actions necessary to report the Army's violation of the Antideficiency Act, 31 U.S.C. 1341(a).

    Agency Affected: Department of Defense: Department of the Army


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