Force Structure: Cost of Two Additional Army Divisions Could Be Significant

U.S. Government Accountability Office

Force Structure:

Cost of Two Additional Army Divisions Could Be Significant

NSIAD-94-238BR: Published: Sep 12, 1994. Publicly Released: Sep 12, 1994.

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Pursuant to a congressional request, GAO provided information on the additional cost of maintaining a 12-division Army force for fiscal years (FY) 1995 through 1999 as compared with the cost of maintaining the Army's planned 10-division force.

GAO found that: (1) the establishment of a 12-division Army force between FY 1995 and 1999 could cost from $1.2 billion to over $4.9 billion; (2) the Army's estimates include over $1 billion in operation and modernization costs and about $3.7 billion in civilian salary costs; (3) adding two additional divisions would require about 17,100 additional personnel; (4) increases to the Army's civilian salary costs will depend on how it staffs the additional division base and echelon above division (EAD) components; (5) the Army's civilian payroll could increase significantly if it reassigns personnel from noncombat positions in the division bases and EAD and replaces all reassigned personnel with civilians; (6) the two additional divisions could cost as little as $1.2 billion if the Army transfers noncombat military personnel to division bases and EAD, does not fill any of the vacant noncombat positions with civilians, and draws personnel from existing Army combat units; (7) the Army views the low cost option as undesirable, since it would deplete its force structure; (8) the Army estimates that installation costs could increase by $4.9 billion over a 6-year period if two additional divisions are established because it would have to delay closing two division installations; and (9) since closing installations can take several years, the Army may not incur any additional costs until after the 1995 through 1999 time period.