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LCD-81-21 1 (1981-01-27)

handle is hein.gao/gaobabblw0001 and id is 1 raw text is: 


GAO
United States General Accounting Office
Washington, DC 20548

B-201561


The
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  Logistics and
  Communications
  Division
JANUARY 27, 1981


Honorabletlom Corcoran, House of Representatives
Honorable Daniel B. Crane, House of Representatives
Honorable. Philip M. Crane, House of Representatives
HonorableEdward J. Derwinski, House of Representatives
Honorable- John N. Erlenborn, House of Representatives
Honorablex Paul Findley, House of Representatives
HonorableHenry J. Hyde, House of Representatives
HonorableEdward R. Madigan, House of Representatives
Honorable Robert McClory, House of Representatives
Honorable Robert H. Michel, House of Representatives
Honorable George M. O'Brien, House of Representatives
Honorable John E. Porter, House of Representatives
Honorable Thomas F. Railsback, House of Representatives


4 ~5jJ I


      Subject: Proposed Consolidation of Defense Contract
                Administration Services Regions in Cleveland/
                (LCD-81-21)

      In response to your June 19, 1980, request, we initiated
 a review of the Defense Logistics Agency's (DLA's) (cost and
 savings estimates for the proposed consolidation of Defense
 Contract Administration Services Regions in Cleveland.)

      On March 29, 1979, the Department of Defense announced
 that as part of DLA's continuing effort to streamline its con-
 tract administration field organization, (actions would be
 initiated to consolidate its nine regions into five.) (Under the
 realinement plan, the Chicago and Cleveland regional offices
 would be consolidated into a new Great Lakes regional office
 and would be located in Cleveland; The consolidation was
 scheduled to begin in April 1981 and to be completed by
 September 1982.

      DLA's support for its estimates was contained in a study
 report issued in November 1978 and revised in October 1979.
 DLA estimated that consolidating the Chicago and Cleveland
 regional offices and locating the new regional office in
 Cleveland would result in annual savings of $5.63 million and
 one-time costs of $1.82 million; DLA estimated that this would
 provide net discounted savings over a 6-year period of $16.0
 million. If the regional office was located in Chicago, DLA
 estimated annual savings of $5.26 million and one-time costs
 of $2.52 million; DLA estimated that this would provide net


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