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Highlights

The 2005 Base Realignment and Closure (BRAC) recommendation to establish fleet readiness centers was expected to yield more savings than any other of the 2005 BRAC recommendations. To achieve these savings the Navy plans to integrate civilian depot personnel to complete some repairs at intermediate maintenance departments to reduce aviation maintenance costs. This report, prepared under the Comptroller General authority to conduct evaluations on his own initiative, is one in a series of reports related to the 2005 BRAC recommendations. GAO's objectives were to (1) analyze the reasons for changes in costs and savings estimates since the recommendation was approved, and (2) identify challenges in implementing this BRAC recommendation. GAO analyzed Navy and BRAC Commission costs and savings estimates and interviewed officials at the Naval Air Systems Command and at three fleet readiness centers.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. To improve the reporting of savings projected from BRAC 2005 recommendations, the Secretary of Defense should direct the Secretary of the Navy to update the business plan for the fleet readiness centers (1) to reflect only savings that are directly related to implementing the recommendation, and (2) update projected onetime savings when data are available.
Closed - Implemented
Fleet Readiness Centers Business Plan was updated in August 2007 in accordance with GAO's recommendation. As directed by OUSD(AT&L) memorandum dated June 22, 2007, the Navy is continuing to update the Fleet Readiness Centers Business Plans during the semiannual updates in accordance with direction from OSD. These updates identify changes to projected costs and savings from the previous business plan update. The savings reflected in each update reflects only the savings related to implementing the recommendation.
Department of Defense 2. To improve the reporting of savings projected from BRAC 2005 recommendations, the Secretary of Defense should direct the Secretary of the Navy to monitor implementation of the recommendation to determine the extent that savings already taken from the Navy budget are actually achieved.
Closed - Implemented
Per GAO's recommendation and in accordance with Secretary of the Navy guidance, the Naval Air Systems Command's COMFRC is closely tracking the savings and cost avoidances associated with Fleet Readiness Centers implementation. COMFRC utilizes "matter of official record data" sources to compile actual values in each of the respective savings categories.

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