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PLRD-82-123 1 (1982-09-30)

handle is hein.gao/gaobabmpy0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFCE ( ~3L WASHINGTON. D.C. 20548 OCUAILMNT, L.OGSTICS, ANO REAOINESS OIVISION September 30, 1982 B-207696 The Honorable Jim Sasser11111li United States Senate lDII ii 119634 Dear Senator Sasser: Subject: Cost Overrun on the Aeropropulsion Systems Test Facility (GAO/PLRD-82-123) In your August 13, 1981, letter, you stated that construction problems of the Aeropropulsion Systems Test Facility (ASTF), located at the Arnold Engineering Development Center, Tennessee, have resulted in a $138 million cost overrun. You expressed concern about the Department of Defense (DOD) policy which per- mits the use of Government-furnished equipment on military con- struction projects and allows split responsibility for design and construction of military construction projects between the Army Corps of Engineers and another military branch or depart- ment. As agreed with your Office, we reviewed the reasons for the cost overrun on the ASTF construction project. We also discussed the construction of the Space Transportation System (STS) support facilities with Air Force and Corps officials to determine if design responsibilities for these facilities were split between the Air Force and the Corps, similar to ways responsibilities were split on ASTF. ASTF ASTF was supposedly fully funded at $437 million in fiscal year 1977, but since then has experienced a significant cost overrun estimated at $138.4 million. The Air Force now esti- mates that ASTF will cost $575.4 million. The ASTF design was completed in February 1977 and the construction contract was awarded in August 1977. The Air Force entered into the construction contract with a design that was not well suited to its revised procurement plan. Originally, the Air Force expected the project to be funded on an incremental basis. The design was divided into seven (945608)

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