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NSIAD-92-220R 1 (1992-06-03)

handle is hein.gao/gaobackbp0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, D.C. 20548 National Security and International Affairs Division June 3, 1992 146782 The Honorable Colin McMillan Assistant Secretary of Defense (Production and Logistics) Dear Mr. McMillan: I am writing to express support for the Department of Defense's efforts to improve the Cost of Base Realignment Action (COBRA) model used in the base realignment and closure cost-estimating process. The enhancements being considered by the Department should improve the process in the future. However, we believe that the process can be improved even further. First, we believe that cost and savings criteria should be a major consideration when the Department evaluates industrial activities such as maintenance depots. Second, the Cobra model can be improved by: (1) basing its standard factors on the most recent base closure experience and differentiating between facility type and region, (2) capturing all government costs, (3) fully documenting the model and independently verifying its programming and algorithms and (4) modifying it to handle simultaneous realignment of multiple organizations. Finally, we believe that oversight of the cost-estimating process can be strengthened. Our observations and suggestions are based on our recent survey of DOD maintenance depot capacity issues and our prior reports on the 1988 and 1991 base closure rounds.' COST AND SAVINGS CRITERIA FOR INDUSTRIAL ACTIVITIES In considering military industrial activities for closure or realignment in the upcoming rounds, we believe that cost and savings criteria should be given more emphasis. In 'Military Bases: An Analysis of the Commission's Realignment and Closure Recommendations (GAO/NSIAD 90-42, Nov. 29, 1990) and Military Bases: Observations on the Analyses Supporting Proposed Closures and Realignments (GAO/NSIAD 91-224, May 15, 1991). GAO/NSIAD-92-220R BASE CLOSURES

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