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08/10/2005
Kerry, Kennedy, Romney and Delahunt Say
New Calculations Show Defense Department Overstates Savings from Closing Otis ANGB by $500 Million Dollars
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Senator John Kerry, Senator Edward M. Kennedy, Governor Mitt Romney, and Congressman William D. Delahunt said new calculations show that the Department of Defense seriously overstated the estimated savings to be achieved by closing Otis Air National Guard Base on Cape Cod by half-a-billion dollars. The new calculations correct a Defense Department error first brought to light on July 18th by U.S. Comptroller General David Walker who heads the Government Accountability Office. According to the new calculations, which have been provided by the Massachusetts Air National Guard to the BRAC Commission, closing Otis will cost the federal government $163 million over the next 20 years, compared to the $336 million in savings that the Defense Department claimed it can achieve if Otis is closed. In his July 18th testimony to the BRAC Commission in Washington, Walker testified that the Defense Department had exaggerated the savings from reducing personnel, since the personnel will be transferred to another defense facility rather than dropped from the force. As Walker stated, “If an increase in end strength is not planned and you are simply redirecting the freed-up resources to another area of need, it should be viewed as enhancing capabilities and achieving more effective utilization of resources but not as dollar savings. This is simple math.” Since the Air National Guard is not planning any reduction in personnel as a result of BRAC, and since other federal agencies remaining at Otis after the Air Guard leaves must pick up the Guard’s share of general maintenance expenditures for the base and since the Guard must train new pilots and new maintenance if the base is closed, their adjustments totaling $499 million must be made in the Department’s estimates of savings. Department’s estimate in net present value: • $184 million from overstated personnel-related savings; • $250 million in costs transferred to other federal agencies at Otis; and • $65 million to train new pilots and maintenance personnel to fly the Guard’s F-15s after they leave Otis. “We have known all along how valuable Otis is to homeland defense. These latest figures demonstrate how costly it would be in strictly monetary terms to close Otis. Whether we’re talking about cost, mission, or the courage and skill of the men and women who serve there, Otis should remain open,” said Senator Kerry.
Senator Kennedy said, “The cost savings were the heart of the Administration’s rationale for closing Otis, in spite of the obvious disadvantage for national security. The new calculations make a strong case for measuring Otis, and I’m optimistic that both the Pentagon and the Commission will agree.” “I have always believed we have a very strong case to make to the BRAC Commission for keeping Otis open. The new calculations on cost savings are additional pieces of direct, hard evidence that underscore the fact Otis should never have been on the list of recommendations for closure,” said Governor Romney. “We have made the case that closing Otis makes no sense in terms of homeland security, and Coast Guard operations,” Congressman Delahunt said. “Today, we now have the hard evidence to also show that closing Otis provides the taxpayers with no real savings and will in the long run be far more costly to our nation.” The BRAC Commission will hold hearings on Thursday in Washington on the Air National Guard recommendations. The Commission’s final deliberations will begin the week of August 22nd, and its recommendations to the President must be submitted by September 8th.
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