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ID-81-23 1 (1981-01-19)

handle is hein.gao/gaobabblj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 1 I'f I INTERNATIONAL. 01VIION JANUARY 19, 1981 B-198641 The Honorable Harold Brown The Secretary of Defense 114163 Dear Mr. Secretary: Subject: buestionable Use of Military Minor Construction and Host Nation Funding in Transfer of 21st Replacement Battalion by U.S. Army Euro 7(ID-81-23) As requested by the Chairman of the House Comittee on Appropriations, we have reviewed allied cost sharing for U.S. military forces stationed overseas. A series of reports on this subject, based on our work in Europe and Japan, is now being prepared for the Chairman. We would like to call your attention to a related issue involving two minor military construction account (MMCA) projects costing $736,500. They were constructed in connec- tion with a $9.6 million complex for the 21st Replacement Battalion at Rhein Main Air Base in West Germany, in which the remaining $8.9 million. was funded from special Federal Republic of Germany (FRG) accounts. . h38 9 We believe the Army avoided the statutory MMCA dollar limitation by classifying the construction of two adjacent and similar buildings as two separate MMCA projects. Although the Army could argue that their action was authorized under applicable Army regulations, we believe that the classification of these buildings as two separate projects defied the spirit and intent of the statutory funding limitation contained in 10 U.S.C. 2674. Also, the Army constructed an addition to one of these buildings, using funds obtained from the FlG. This brought the total cost of this one build- ing alone to over $1 million. Moreover, we believe the Army failed to obtain satisfactory compen- sation from the FRG for return of facilities in connection with the move. Information contained in this report was obtained from our inspection of project and contract files, negotiation records, and correspondence. Discussions were held with Army officials at Headquarters, U.S. Army Europe (USAREUR) in Heidelberg, Germany; and Headquarters, V Corps and Frankfurt Military Community in Frankfurt, Germany. Also, we inspected the new com- plex for the 21st Replacement Battalion at Rhein Main Air Base, Germany. (463730) C

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