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FPCD-80-37 1 (1980-01-31)

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,                  COMPTROLLER GENERAL OF THE UNITED STATES i
                           WASHINGTON, D.C. 20548
           RELEASED            ,o



   B-157905                       January 31, 1980111 ii i

   The Honorable Bill Chappell   Ti

   House of Representatives   /                         111460

   Dear Mr. Chappell:

         Subject: (Undergraduate Helicopter Pilot Training:
                 -Consolidation Could Yield Significant
                 Savings'FPCD-80-37)

         During our meeting Ion September 26, 1979, you asked
    for certain details from our workpapers that supported
    findings in our September 20, 1979, report to you and
    ,,Congressman Richard C. White on consolidating undergraduate
    ... e pe r pilo  aralning at Fort jAla       ama.  You re-
    quested information on (1) differences between the Depart-
    ment of the Navy's current training program and the one pro-
    posed under consolidation and (2) some of the intangible
    benefits the Navy might lose under consolidation.

    COSTS AND RELATED SAVINGS

         Schedules 1 to 13 show the services' training cost esti-
    mates and the basis for our conclusion that savings from con-
    solidatiQn should be more than      million--/   Adjustments
    to both Army and Navy cost estimates were necessary. The
    Army's estimated incremental cost for training Navy students
    required an increase of about $17 million--from $203.3 mil-
    lion to $220.6 million. (See schedule 1.) The total in-
    crease in the Navy's estimated cost avoidance for training
    its students under a separate program could not be derived
    from data it provided to us. However, as schedule 4 shows,
    the required increase would be at least $23 million, i.e.,
    $289.7 million versus Navy's earlier estimate of $266.6 mil-
    lion. The Navy was still revising its estimate at the time



    I/Data is based on the services' cost estimates prepared
      under the assumptions in the May 1979 Army/Navy joint
      memorandum of understanding.

                                                       (962125)
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