Benefits of Joint Basing Unlikely to Meet Expectations, GAO Says
- July 2, 2012
The 20-year net present value of the savings expected to be produced by DOD’s joint basing initiative has plunged $2.1 billion from the estimate issued by the BRAC Commission in 2005, according to a new report by the Government Accountability Office (GAO).
The commission had estimated that establishing 12 joint bases by consolidating management and support of 26 installations that share a common boundary or are in close proximity to one another would generate $2.3 billion in savings over 20 years. DOD now believes, however, that joint basing will result in a 20-year net present value of only $249 million, the report says.
To carry out joint basing, DOD created a set of standards for providing installation support that each joint base is required to provide. The initiative may be increasing costs, at least in the short term, because the services previously did not fund installation support sufficiently to meet their standards, GAO said.
The congressional watchdog agency is scheduled to release a separate report on joint basing later this year.
The joint basing recommendation is one of three GAO highlighted that experienced a decline of $2 billion or more in their projected 20-year net present value. The projected savings for a recommendation to reconfigure DOD’s wholesale supply, storage and distribution network across the United States, while also consolidating these functions at several maintenance depots, dropped $2.8 billion.
Projected savings for the consolidation and realignment of multiple locations for the National Geospatial-Intelligence Agency at Fort Belvoir, Va., fell by $2.1 billion, compared to the 2005 estimate of its savings. GAO last week released a separate report on that recommendation.