Summary

The National Oceanic and Atmospheric Administration's (NOAA) desire to relocate its Aircraft Operations Center to better facilities at a government-owned installation is understandable. NOAA's cost analysis of the move from Miami to MacDill Air Force Base in Tampa, however, was neither thorough nor adequately supported by facts. NOAA (1) failed to include the cost of running the MacDill airfield after the Air Force closes it in 1994 and (2) lacked support for estimated rental costs at commercial airports considered as alternative locations. Because responsibility for running the MacDill airbase beyond 1994 remains murky, operational costs there are unknown. NOAA will likely be liable for some of the airfield's operating costs, which could exceed the costs of leasing space elsewhere. From a cost perspective, NOAA's decision to relocate was risky and potentially premature, mainly because of the cost uncertainties.

GAO found that: (1) the relocation cost estimate was inadequate due to a unreliable methodology, questionable cost analysis, and failure to include all economic costs; (2) NOAA was not able to estimate the rental costs at MIA or adequately compare costs at other alternative rental sites, overestimated yearly increases of MIA rental costs by $1.2 million, and overstated telephone service estimates at alternative rental sites; (3) the Air Force offered to supply AOC with hangar and building services at MacDill Air Force Base without rent until 1994, but NOAA would likely be liable for MacDill operation costs, which would exceed the costs of leasing space elsewhere; and (4) the decision to relocate to MacDill Air Force Base involves risks because of uncertainties concerning future occupancy, the impact on hurricane research, and unknown costs.