Military Construction:

Planning and Design Costs

NSIAD-94-182BR: Published: Jun 22, 1994. Publicly Released: Jun 22, 1994.

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Pursuant to a legislative requirement and a congressional request, GAO reviewed the Department of Defense's (DOD) military construction planning and design (P&D) costs, focusing on: (1) trends in P&D costs for the military services and DOD agencies; (2) the percentage of total project costs directed to P&D; and (3) a comparison of DOD P&D percentages to those of four civilian federal agencies.

GAO found that: (1) the percentages of DOD construction costs devoted to P&D were relatively constant for fiscal year (FY) 1989 through FY 1992; (2) lower cost projects tended to have a higher percentage of P&D costs than higher cost projects; (3) there were no clear trends in P&D costs, but the Air Force's and defense agencies' P&D percentages were significantly higher than the Army's P&D percentages; (4) DOD P&D percentages were generally higher than those of the other federal agencies because the agencies did not include some administrative costs in their P&D costs; (5) DOD had significantly higher P&D costs for its medical facilities than did the Department of Veterans Affairs (VA); (6) the military services and defense agencies devoted substantially more time to P&D than the General Services Administration or VA; and (7) the Logistics Management Institute has made a number of recommendations to improve DOD cost controls and P&D reporting.

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