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Pursuant to a congressional request, GAO evaluated the Army's progress in redistributing war reserve equipment that is no longer needed in central Europe, focusing on whether: (1) the Army's plan for redistributing central European war reserve equipment provides for the specific and timely disposition of this equipment; and (2) cost savings would be realized by aligning the storage and maintenance capacities in central Europe so that they accurately reflect the reduced mission there.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. The Secretary of Defense should direct the Secretary of the Army and the Commander, Army Materiel Command, to develop a specific and timely disposition plan for all equipment not needed in central Europe.
Closed - Implemented
DOD concurred with the recommendation. DOD has developed disposition instructions for all excess equipment, but has not completed disposition actions.
Department of Defense 2. The Secretary of Defense should make timely decisions about the fate of the proposed programs slated to receive additional equipment--the proposed brigade set and the increase in support equipment recommended by the 1995 Mobility Requirements Study Bottom-Up Review Update.
Closed - Implemented
DOD has made final decisions regarding the 8th brigade set and MRS-BURU increment plus up.
Department of Defense 3. The Secretary of Defense should direct the Commander in Chief, U.S. European Command, and the Commander, Army Materiel Command, to reduce the costs of facilities and personnel to reflect the new, reduced mission in central Europe.
Closed - Implemented
DOD has announced the closure of prepositioning sites and the reduction of personnel to meet the reduced workload. As a result of the Army closing prepositioning sites and associated facilities and reducing personnel, the Army reduced O&M funding from $117.2 million in FY 1999 to $48.8 million in FY 2000 and to $44.9 million in FY 2001. This was a total saving of $140.7 million in O&M costs.

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