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RCED-95-43R 1 (1994-11-02)

handle is hein.gao/gaobackrr0001 and id is 1 raw text is: United States (AO General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-258948 November 2, 1994 The Honorable Don Nickles United States Senate Dear Senator Nickles: This correspondence responds to your request that we review and comment on the Federal Highway Administration's (FHWA) plan to move its H. David Howard Motor Carrier Academy from its current location at the Transportation Safety Institute (TSI) in Oklahoma City to a new location in Northern Virginia. FHWA intends to move the Academy in January 1995. FHWA officials stated that the proposed move will foster better management control, improve curriculum development, and save the agency over $300,000 during the first 3 years following the move. TSI stated that the relocation does not conform with the renewed emphasis on intermodalism in federal transportation policy and would cost FHWA approximately $1.6 million over the 3-year period. In brief, we found that the cost of the proposed relocation is not certain and could range, over the next 3 years, between saving FHWA as much as $8,600 or costing the agency as much as $931,400. The difference primarily depends on FHWA's ability to secure and retain a hotel contract that reduces the travel costs for Academy participants significantly below the official government per diem rate for the Washington, D.C., area. However, both FHWA and TSI officials stated that the decision to relocate the Academy must also include important nonfinancial issues--better management control, according to FHWA, and sufficient emphasis on intermodalism, according to TSI. We agree that these issues are important and should be weighed in FHWA's final decision about relocating. The following is a brief description of the background of this issue, a summary of the agencies' cost estimates, the results of our cost analysis, and an overview of the qualitative issues that FHWA and the TSI believe weigh on the final decision about relocating. GAOIRCED-95-43R, Motor Carrier Academy

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