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GAO-10-726R 1 (2010-06-14)

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       Accountabi|lty I Integrity I Reliahility
United States Government Accountability Office
Washington, DC 20548


         June 14, 2010

         Congressional Requesters

         Subject: Defense Infrastructure: Observations on the Department of the Navy's
         Depot Capital Investment Program

         This letter formally transmits the enclosed briefing slides in response to your request.
         We were asked to determine to what extent the Department of the Navy complied
         with the requirement in Section 2476 of Title 10 of the United States Code to invest a
         total amount equal to not less than 6 percent of the average total combined workload
         funded at all the depots of the Department of the Navy for the preceding 3 fiscal years
         in the capital budgets of covered depots listed in the law. We presented this briefing
         to your staff on May 5, 2010, in which we concluded that the Department of the Navy
         complied with the minimum required depot capital investment. More details on our
         findings are provided in enclosure I. In addition, we have a related ongoing review of
         the condition of the public Naval shipyards, which are included under the Navy
         depots that receive capital investment funding.

         We provided a draft of the enclosed report to the Department of Defense for review
         and comment. The Department agreed with our findings and its oral comments are
         included as part of the briefing.

         We are sending copies of this report to the appropriate congressional committees and
         senators. We are also sending copies to the Secretary of Defense, the Secretary of the
         Navy, and the Commandant of the Marine Corps. The report will also be available at
         no charge on the GAO Web site at htip://www.2ao. ov.

         Should you or your staff have any questions concerning this report, please contact me
         at (202) 512-5257 or MerrittZ@agao.gov. Contact points for our Offices of
         Congressional Relations and Public Affairs may be found on the last page of this
         report. Key contributors to this report include Laura Durland, Assistant Director;
         Leslie Bharadwaja; Larry Bridges; and Gina Hoffman.





         Zina D. Merritt
         Acting Director
         Defense Capabilities and Management

         Enclosure


GAO-10-726R Defense Infrastructure

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