Summary

GAO initiated a review of the cost and savings estimates of the Defense Logistics Agency (DLA) for the proposed consolidation of the Defense Contract Administration Services Regions in St. Louis. Under the realignment plan, the Dallas and St. Louis regional offices would be consolidated into a new west central regional office and would be located in St. Louis. DLA decided that locating the new west central regional office in St. Louis, instead of Dallas, would be more cost-effective.

DLA is currently reviewing all of its Defense Contract Administration Services Regions to examine: (1) costs and benefits associated with alternative organizational structures; (2) a projected increase in Department of Defense contracting; and (3) computer systems that support the regional offices. The review will include changes in the regions' boundaries, workloads, and organization structures, which will significantly alter the cost and savings estimates used in the previous decision to locate the new west central regional office in St. Louis. Consequently, GAO discontinued reviewing the cost and savings estimates upon which DLA based its realignment plan.