Aerospace Guidance and Metrology Center: Cost Growth and Other Factors Affect Closure and Privatization
NSIAD-95-60
Published: Dec 09, 1994. Publicly Released: Dec 09, 1994.
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Highlights
Pursuant to a congressional request, GAO reviewed the cost and savings issues related to the closure and privatization of the Newark Air Force Base Aerospace Guidance and Metrology Center (AGMC).
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretaries of the Air Force and Defense should reevaluate, as a part of the ongoing Base Closure and Realignment Commission 1995 process, both the DOD 1993 recommendation to close Newark Air Force Base/AGMC and the Air Force's approach to implementing the closure decision through privatization-in-place. |
DOD partially concurred with this recommendation, noting that it continued to support the 1993 Defense Base Closure and Realignment Commission decision to close Newark AFB/AGMC, but agreed with GAO that the approach to closure should not be limited to privatization in place. DOD noted that it would evaluate further the potential costs of the privatization-in-place initiative and would also reassess organic alternatives to determine the most effective approach for implementing the closure decision. Subsequently, an internal Air Force study, which was supported by an independent public accountant's findings, substantiated that privatization in place and other organic options are more expensive than the costs of operation. However, DOD did not ask for reconsideration of the AGMC closure during the 1995 BRAC process. DOD continues to implement the privatization-in-place initiative. Contracts were awarded and the transition period has been completed.
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| Department of the Air Force | The Secretaries of the Air Force and Defense should reevaluate, as a part of the ongoing Base Closure and Realignment Commission 1995 process, both the DOD 1993 recommendation to close Newark Air Force Base/AGMC and the Air Force's approach to implementing the closure decision through privatization-in-place. |
DOD partially concurred with this recommendation, noting that it continued to support the 1993 Defense Base Closure and Realignment Commission decision to close Newark AFB/AGMC, but agreed with GAO that the approach to closure should not be limited to privatization in place. DOD noted that it would evaluate further the potential costs of the privatization-in-place initiative and would also reassess organic alternatives to determine the most effective approach for implementing the closure decision. Subsequently, an internal Air Force study, which was supported by an independent public accountant's findings, substantiated that privatization in place and other organic options are more expensive than the costs of operation. However, DOD did not ask for reconsideration of the AGMC closure during the 1995 BRAC process. The Air Force awarded contracts for depot maintenance workloads and the metrology program.
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Air Force facilitiesBase closuresBase realignmentsEquipment maintenanceFederal property managementIntercontinental ballistic missilesMechanical engineeringNavigation aidsPrivatizationRadar equipment