Military Base Realignments and Closures: Cost Estimates Have Increased and Are Likely to Continue to Evolve

The 2005 Base Realignment and Closure (BRAC) round is the biggest, most complex, and costliest ever. The Department of Defense (DoD) viewed this round as a unique opportunity to reshape its installations, realign forces to meet its needs for the next 20 years, and achieve savings. To realize savings, DoD must first invest billions of dollars in facility construction, renovation, and other up-front expenses to implement the BRAC recommendations. However, recent increases in estimated costs have become a concern to some members of Congress. Under the Comptroller General's authority to conduct evaluations on his own initiative, GAO did the following: (1) compared the BRAC Commission's cost and savings estimates to DoD's current estimates, (2) assessed the potential for change in DoD's current estimates, and (3) identified broad implementation challenges. GAO compared the BRAC Commission's estimates, which were the closest estimates available associated with final BRAC recommendations, to DoD's current estimates. GAO also visited 25 installations and major commands, and interviewed DoD officials. GAO recommends that DoD explain its estimated BRAC savings from personnel reductions as compared to other savings to provide more transparency to Congress. DoD concurred with GAO's recommendation and agreed to explain savings estimates in its BRAC budget material to Congress.
Report to Congressional Addressees.