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NSIAD-92-228R 1 (1992-05-14)

handle is hein.gao/gaobackas0001 and id is 1 raw text is: 

United States
General Accounting Office
Washington. I).C. 20548

National Security and
International Affairs Division
B-248641


May 14, 1992


The Honorable Sam Nunn                          l
Chairman, Committee on Armed Services              146617
United States Senate

Dear Mr. Chairman:

As requested, we examined the National Security Agency's
(NSA) rationale for its proposed lease of commercial
special-purpose space adjacent to its headquarters at Fort
George G. Meade, Maryland, as part of its planned reduction
in personnel and space. This letter summarizes our
observations and conclusions, which we presented to your
staff on May 4, 1992.

On the basis of our examination of available documentation
and discussions with key agency personnel, we concluded
that NSA had (1) developed a plan for its reduction in
personnel and the amount of space needed for operations and
(2) adequately identified and evaluated alternatives for
managing its space reduction. Although we did not validate
individual cost data in NSA's economic analysis of the
alternatives, we have no basis to question the accuracy of
the data. We believe NSA has reasonably identified the
cost factors that would affect a comparative economic
analysis of those alternatives.

In addition to identifying cost reductions that will occur
from the proposed lease, NSA has also identified intangible
benefits that would accrue to the work force and improve
overall operations and maintenance planning. On the basis
of these savings and benefits, NSA has decided to lease
commercial special-purpose space adjacent to Fort Meade.
Given the results of NSA's evaluation, we have no basis to
question the validity of NSA's decision.

SPACE REDUCTION PLAN

In late 1989, NSA developed a model to help the agency
manage anticipated budget reductions. With the model, NSA
analyzed the impact of various funding levels on
investment, operations and maintenance costs, and salaries
for the civilian and military work force. On the basis of

1                            GAO/NSIAD-92-228R Intelligence

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