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Military Base Realignments and Closures: Updated Costs and Savings Estimates from BRAC 2005

Abstract : To assess DoD's cost estimates of implementing BRAC 2005, we examined the initial cost estimates in the BRAC Commission's Report to the President and compared them to our analyses of data in DoD's fiscal year 2011 BRAC 2005 budget submission to Congress. In addition, we discussed with the military departments' BRAC offices the reasons for cost increases and reviewed OSD's business plans for recommendations that had the largest increases in costs to determine the reasons for the changes, and discussed them with OSD officials, and officials in the military departments and defense agencies as appropriate. To evaluate changes in DoD's projected 20-year net present value estimates from the BRAC Commission's 2005 estimates, we examined the data in DoD's fiscal year 2011 BRAC 2005 budget submission to Congress. For consistency in making comparisons to the BRAC Commission's original estimates, we applied the same formulas and discount rate of 2.8 percent that the BRAC Commission used to calculate the 20-year net present value estimates in 2005. To evaluate changes in DoD's projected net annual recurring savings from the BRAC Commission's 2005 estimates through fiscal year 2011, we used data OSD provided to us for estimated savings in fiscal year 2012 -- the year after OSD expected all recommendations to be completed. We determined that the data used were sufficiently reliable for the purposes of addressing the objectives of this report. We performed this work from March 2012 to June 2012 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.