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PLRD-83-9 1 (1982-10-21)

handle is hein.gao/gaobabmqq0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT. LOGISTICS, AND READINESS DIVISION B-209006 119727 OCTOBER 21,1982 The Honorable Verne Orr The Secretary of the Air Force Dear Mr. Secretary: Subject: Appropriations for Military Construction Projects in the United Kingdom Exceed Estimated Air Force Costs (GAO/PLRD-83-9) The Air Force budgets and requests more money for project design and construction supervision, inspection, and overhead (SIOH) thaY it needs for military construction projects in the United Kingdom. The Air Force requests about 12 percent of estimated construction project costs--7 percent for design and 5 percent for SIOH. However, it is required to pay the British Government only 7-1/2 percent of final project costs,. or 4-1/2 percent less than the budget request. We estimate that the Air Force overstated its fiscal years 1982 and 1983 budget requests for projects in the United Kingdom by $2.3 million and $3.7 million, respectively. We reviewed documents and talked with officials at the Department of the Air Force, the Directorate of Engineering and Services, and the U.S. Air Force 7502 Civil Engineering Squadron in the United Kingdom. Our work was performed in accordance with generally accepted government audit standards. In 1973 the United States and the British Government signed a cost-sharing agreement for U.S. military construction projects in the United Kingdom. Under this agreement the United States pays the British Government 7-1/2 percent of the projects' actual construction costs for design and construction SIOH. The Air Force requests project design and construction SIOH funds under two separate line items in the military con- struction appropriations. The SIOH funds are included in each individual project's construction fund request, while design funds are requested in one lump sum for all projects. (945506) 0a3Wof

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