Costs Are Exceeding DOD's Estimate

NSIAD-96-204BR: Published: Jul 25, 1996. Publicly Released: Jul 25, 1996.

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GAO reviewed the Department of Defense's (DOD) estimated costs of participating in the multilateral coalition in Bosnia.

GAO found that: (1) DOD's costs for operations in and around Bosnia, which span fiscal years (FY) 1996 and 1997, could exceed DOD's $3-billion estimate by as much as $451 million, and further increases are possible; (2) FY 1996 costs will likely exceed DOD's $2.2-billion estimate; (3) the Army's cost estimate, which represents over two-thirds of the cost of the operation, has already increased by about $309 million over DOD's April 3 estimate, and these costs will be absorbed within the Army's operation and maintenance account; (4) potential new requirements for items such as further changes to the force composition in Bosnia and additional transportation could add as much as $142 million to the costs; (5) the Army is reviewing some of the $142 million to determine if it should pay for certain costs related to transportation and North Atlantic Treaty Organization (NATO) Implementation Force headquarters; (6) FY 1997 costs will likely exceed the current estimate and depend heavily on decisions that are yet to be made regarding force requirements and redeployment; (7) DOD's estimate has already increased beyond the amount included in the President's budget submission; (8) both the amount in the President's budget and the revised DOD estimate are based on redeployment from Bosnia and neighboring countries being completed by December 20, 1996; (9) current planning by the U.S. Army, Europe, however, assumes that although U.S. forces will redeploy from Bosnia by December 20, redeployment from Croatia and Hungary will extend into 1997; (10) future decisions on NATO force requirements and when to begin redeployment will determine when and how U.S. forces redeploy from the area of operations and whether additional sustainment will be required beyond December 20; and (11) any costs incurred beyond that date or in addition to the planned requirements will either be absorbed within existing DOD appropriations or require additional funding.

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