BRAC costs continue upward spiral

The Government Accountability Office has found that the Defense Department’s 2005 round of the Base Realignment and Closure Act so far costs 67 percent more than originally planned, with up-front costs ballooning from $21 billion to $35 billion, reports FCW, a sister publication of Defense Systems.

The 2005 round of BRAC was the fifth, and most ambitious, of activities to realign the military that began in 1988, costing nearly as much as the previous four rounds combined to “enhance the military value.” It included hundreds of actions involving 800 defense locations and the planned relocation of 125,000 personnel, GAO noted.

The initial plan was to generate recurring savings to be reinvested in other DOD programs. It was designed to yield a 20-year net present value – which represents both the up-front investment costs and long-term savings – of nearly $36 billion. That number has fallen by 72 percent, to about $10 billion.

Of the 182 approved BRAC 2005 projects, more than half are expected to cost more than they’ll save, the story said.


 

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