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LCD-79-324 1 (1979-07-31)

handle is hein.gao/gaobaaznb0001 and id is 1 raw text is: it oQVUJ GAO LM109984 United States General Accounting Office Logistics and Vahin-on, DC 20548 Communications Division B-1 72707 JULY 31, 1979 The Honorable William F. Goodling House of Representatives 109984 Dear Mr. Goodling: In response to your April 6, 1979, request, we have reviewed the Army'.s economic justification for its decision to phase out aircraft maintenance operations at the New Cumber- <!3and Army Depot, Pennsylvania. These operations essentially involve the overhaul and repair of helicopter components. ver the past several years, the Army has implemented a mber.of realinements to reduce unnecessary support, head- quarters, and overhead structure costs and to improve com- bat forces. New Cumberland is one of several military in- stallation involved in realinement actions announced by the Department of Defense (DOD) on March 29, 1979. The Army proposes to accomplish its planned realinement in phases during fiscal years 1979 through 1982. /he Army plans to transfer aircraft maintenance functions from New Cumberland to the Corpus Christi Depot, Texasv Also the Army plans to (1) eliminate depot-level overhaul of OH-58 heli- copters and (2) overhaul CH-47 helicopters when they are being modernized by a contractor. The Army estimates that these actions will reduce New Cumberland's aircraft mainte- nance workload by 50 percent. We examined the most significant items in the Army's estimates of costs and savings as a result of transferring aircraft maintenance functions to the Corpus Christi Depot, and to other organizations. The proposed realinement appears economically justified. One-time costs will be repaid within 1 year, well within the 7- to 10-year payback period established by DOD as the basis for economic justifi- cation for base closure or realinement.i The Army's original costs and savings estimates were based on a 1977 study, which did not reflect the current situation. We asked the Army to provide us with more current information. LCD-79-324 k ro (945365)

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