Summary

Pursuant to a congressional request, GAO reviewed the estimated costs, savings, and personnel attrition associated with the realignment/relocation of Naval Air Development Center operations in Warminster, Pennsylvania, and Naval Air Warfare Center (Aircraft Division) operations in Trenton, New Jersey, to other locations, focusing on: (1) whether current estimated costs and savings estimates differ from original base realignment and closure (BRAC) commission estimates and, if so, the effect on the payback period; and (2) the extent to which employees relocated with their respective operations.

GAO noted that: (1) because of limitations in available data, it was unable to precisely identify the changes in estimated cost and savings estimates for the two locations; (2) thus, GAO's analysis of changes in estimated cost and savings represents a rough order of magnitude; (3) using available data, however, GAO determined in consultation with the Navy that Warminster and Trenton relocation estimated costs are more and the estimated recurring savings are less than estimated by the respective BRAC commissions; (4) for Warminster, the current cost estimate, excluding environmental restoration, is about $298 million, or $114 million higher than the initial estimate, while the current annual savings estimate of about $19 million is less than the initial estimate; (5) similarly, for Trenton, the current cost estimate, excluding environmental restoration, is about $133 million, or $36 million higher than the initial estimate, while the current annual savings estimate of about $12 million is less than the initial estimate; (6) this resulted in an increase in the estimated payback period--from 9 to 33 years for Warminster and from 5 to 18 years for Trenton; (7) in both relocations, relatively large numbers of employees did not relocate with the operations; and (8) however, Navy officials stated that no substantial adverse mission impact has resulted or is expected to result.