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LCD-79-322 1 (1979-08-08)

handle is hein.gao/gaobaaznu0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATESI WASHINGTON. D.C. 20348 LM110042 B-172707 AUGUST 8, 1979 The Honorable Lucien N. Nedzi Chairman, Subcommittee on Military Installations and Facilities 11111111 Committee on Armed Services 110042 House of Representatives -5- 310042 Dear Mr. Chairman: In response to your request of April 10, 1979, we have reviewed the Air Force's economic justification for the proposed reduction of operations at Loring Air Force Base, Limestone, Maine. We examined the most significant items of cost and cost avoidance associated with the reduction and computed the payback period. Cost and savings esti- mates are part of the decision justification that the Secre- tary of Defense is required to submit to the House and Senate Committees on Armed Services. Loring is one of several military installations for which the Department of Defense announced realinement actions on March 29, 1979. The Air Force is planning a two-phased reduction. The first phase will remove all B-52s and 10 of 30 KC-135 aircraft. The second phase, scheduled to begin in 1982 or 1983, depending on completion of the first phase, will remove the remaining KC-135 aircraft. When the reduction is complete, Loring will be a forward operating base with 10 KC-135 rotational aircraft, 800 military authorizations, and 490 civilian employees of the Air Force and contractors. Presuming the Air Force implements the realinement as presently planned, the reduction of Loring appears economi- cally justified. The associated one-time costs will be paid back within 1 year, well within the 7- to 10-year payback period established by the Department of Defense as the basis for economic justification for base closure or realinement. The cost and cost avoidance items reviewed appeared reasonable and were calculated in accordance with Air Force cost estimat- ing instructions. Details of each item reviewed are discussed in the enclo- sure. As you suggested, we did not obtain-written comments LCD-79-322. (945379) 0 /c~2

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