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Pursuant to a congressional request, GAO provided information on Department of Defense's (DOD) contingency operations costs and funding for fiscal year (FY) 2000, focusing on: (1) how DOD components identify incremental costs in support of contingency operations; and (2) the need for, and average cost of, mission rehearsal exercises conducted by the Army in preparation for contingency deployments.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. To ensure consistency in estimating and reporting incremental contingency operations costs, the Secretary of Defense should determine whether a common methodology for developing incremental flying hour costs is feasible, and, if so, revise the regulation on contingency operations to reflect that methodology. At a minimum, the Secretary of Defense should direct the Secretary of the Navy to develop and apply a single methodology for determining the incremental flying hours within the Navy.
Closed - Implemented
The Navy has developed and implemented a common methodology for calculating flying hours.
Department of Defense 2. Because the regulation on contingency operations does not provide for wear and tear on infrastructure and related facilities at home stations as a contingency operation cost, the Secretary of Defense should modify the regulation to specifically state circumstances under which home station infrastructure wear and tear is allowable as a contingency operation cost.
Closed - Implemented
DOD has revised its regulation and credits GAO's report with being the catalyst for identifying the need for clarification in this area. In addition, it has denied $47.2 million in fiscal year 2000 infrastructure repair costs claimed by the Air Force.

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