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GAO-11-488R 1 (2011-04-01)

handle is hein.gao/gaobaanxe0001 and id is 1 raw text is: United States Government Accountability Office Washington, DC 20548 April 1, 2011 The Honorable Daniel K. Inouye Chairman The Honorable Thad Cochran Ranking Member Subcommittee on Defense Committee on Appropriations United States Senate The Honorable C.W. Bill Young Chairman The Honorable Norman D. Dicks Ranking Member Subcommittee on Defense Committee on Appropriations House of Representatives Subject: Military Base Realignments and Closures: Review of the Iowa and Milan Army Ammunition Plants The 2005 Base Realignment and Closure (BRAC) Commission report recommended that the Army close Kansas and Lone Star Army Ammunition Plants and relocate certain munitions production-related functions' from the Kansas and Lone Star Plants to Iowa and Milan (Tennessee) Army Ammunition Plants. As a result of the recommendations, the Army closed the Kansas and Lone Star Plants in 2009 and is in the process of relocating munitions production functions to the Iowa and Milan Plants. The 2005 BRAC recommendations must be completed by September 15, 2011. In addition, in February 2008, the U.S. Army Sustainment Command issued a request for proposals for operating and maintaining both the Iowa and Milan Plants. As part of the proposals, all offerors were to submit optimization plans for the optimum operation, maintenance, and utilization of the plants. In October 2008 the Army awarded a contract to American Ordnance for the operation and maintenance of the Iowa and Milan Plants at no direct cost to the government. Under the contract, American Ordnance will perform (among other things) security and maintenance for the facilities and will perform the actions identified in its Baseline Optimization Plan to optimize the facilities.2 In exchange for these services, American Ordnance is given the 1 The 2005 Base Closure and Realignment and Commission recommended the movement of certain functions, such as production, storage, and demilitarization. This correspondence only addresses the production functions that were directed to be relocated to the Iowa and Milan Plants. 2 A second optimization plan, known as the Enhanced Optimization Plan, is also part of the contract and consists of optional projects that the government could elect to initiate by providing additional funding. GAO-11-488R Military Base Realignment and Closures Page 1

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