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LCD-79-328 1 (1979-08-15)

handle is hein.gao/gaobaazqx0001 and id is 1 raw text is: GAOt United States General Accounting Office Logistics and Washington, DC 20548 Communications B-168700 RELEASED Division AUGUST 15, 1979 The Honorable Gordon J. Humphrey United States Senate RESTRICTED - Not to be released outside the General Dear Senator Humphrey: Accoounting Office except on the basis of specific appro, by tSp Office of Congressional Relations. Subject: Review of the Merger of Navy Sea Systems Command Automatic Data Support Centers (LCD-79-328) This is in response to your May 11, 1979, letter, L e9esting us to evaluate the economic elements behind the Navy's decision to move the Computer Application Support and ,fjJ Development Office, located at the Portsmouth Naval Shipyardrf? New Hampshire, and merge it with the Central Naval Ordnance Management Information Systems Office, located at Indian Head, Maryland. 7Z , - 2' The Navy has been considering the merger of these activ- ities since 1976.( A Ju-ly 1977 Navy report showed that con- solidation of these activities could eliminate 37 positions at an estimated annual savings of $905,600. The Navy then studied the alternatives of locating the consolidated activ- ity at either Portsmouth or Indian Head to determine which of the two sites would result in the least costs.) In a--J±y 1978 report, the Navy concluded that it would incur less investment costs by locating at Indian Head. We' reviewed the cost elements supporting that decision and agree 4 that it is economically more favorable to locate at Indian Head. The Navy estimated that the mov to Indian Head would be $615,000 less than at Portsmouth, bA-4 esti ated IV &T8 r ', less. The Navy also estimated that the annual operating costs at Indian Head would be--38, 000 greatertha at Ports- mouth, however,'' estimated &$2,G0-0 eater. ) Details of our cost estimates, compared with the Navy's, are shown in enclo- sure I. Since 1976 the Navy has reduced the authorized personnel for these two activities by 81 positions, a level where it (945384)

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