PCS Per-Move Costs Have Increased Since 2001, and DOD Has Not Evaluated the Factors Contributing to This Increase

DOD has experienced an overall increase in PCS per-move costs since  2001, but it does not have complete, consistent data on the program and  has not evaluated the specific factors contributing to per-move cost  growth. Our analysis of DOD budget data shows that average PCS per- move costs, after accounting for inflation, increased by 28 percent from  fiscal year 2001 to fiscal year 2014. However, we found that the services have not reported complete,  consistent PCS data, thereby limiting the extent to which DOD can  identify and evaluate changes within the PCS program. Program changes  and other factors affect PCS costs, but the specific factors driving the  overall growth in per-move costs are unclear, and DOD does not know  whether the PCS program is efficiently supporting requirements to assign  personnel in new locations. 1). 3). More specifically, when we compared the data reported to  Congress in each of the services’ budget justification materials from fiscal  years 2010 to 2014, we found that the services did not report complete  and consistent data for non-temporary storage costs, temporary lodging  expenses, or tour extension incentive payments (see table 2). 2014. DOD guidance specifies time-on- station lengths for U.S. and overseas locations and also allows for  personnel to move prior to reaching these lengths if they qualify for an  exception or obtain a waiver. However, DOD does not have complete and  consistent data on the reasons why PCS moves occur prior to reaching  specified lengths, because the services (1) do not maintain required data  on their usage of exceptions, and (2) do not have a requirement to  maintain data on their usage of waivers. Moreover, service data on time- on-station lengths are limited. For example, each  service had different years of available data. In addition, one service  provided time-on-station data for officers and enlisted personnel  separately, and these data covered different time periods. For more detail on our analysis of the services’ time-on-station data, see  appendix V.

	OSD’s Report on Increasing Time-on- Station Addressed the Elements in Congressional Direction and Used Approaches Consistent with Generally Accepted Research Standards, but Could Have Contained Additional Information

In its September 2014 report on increasing time-on-station, OSD  addressed the elements that were specifically identified in congressional  direction. OSD also used approaches consistent with generally accepted  research standards in preparing its report. Furthermore, DOD does not conduct periodic evaluations of the PCS  program and is not in a position to identify and evaluate changes that may  be occurring over time in PCS per-move costs and the factors driving  such changes, nor is it in a position to take steps to manage and control  cost growth. OSD stated in its September 2014 report to Congress that  it is planning to take actions aimed at extending servicemembers’ time- on-station—actions that OSD believes could reduce PCS costs. However,  in the absence of more complete and consistent data on both PCS costs  and the use of exceptions and waivers, DOD does not have the  information it needs for evaluating whether the implementation of its  planned actions are effective in extending time-on-station lengths and  reducing PCS costs. Recommendations for Executive Action

To improve the availability of information needed for effective and efficient  management of the PCS program, including program costs and time-on- station requirements, we recommend that the Secretary of Defense take  the following four actions:
Direct the Under Secretary of Defense (Comptroller), in coordination  with the military services, to improve the completeness and  consistency of PCS data in service budget materials. To evaluate the extent to which military personnel are meeting time-on- station requirements by either reaching minimum time-on-station lengths  or receiving exceptions and waivers to make a PCS move earlier than  planned, we obtained and analyzed available data from the military  services on time-on-station lengths and associated waivers and  exceptions. To determine the extent to which OSD’s September 2014 report on time- on-station addressed the elements identified in Senate Report 112-196,  we used a scorecard methodology. 4.
Why GAO Did This Study

PCS involves moving military personnel to new locations and is a key tool used by the military services to fill assignments both in the United States and overseas. In fiscal year 2014, DOD obligated $4.3 billion for approximately 650,000 servicemember PCS moves.
Senate Report 113-176 included a provision for GAO to report on aspects of the PCS program. This report evaluates the extent to which (1) PCS per-move costs have changed since 2001, (2) military personnel are meeting time-on-station requirements, and (3) OSD's September 2014 study on increasing time-on-station addressed the elements in Senate Report 112-196 and used approaches consistent with generally accepted research standards.
GAO analyzed PCS cost and move data for fiscal years 2001 through 2014 using fiscal year 2014 dollars; obtained and analyzed available time-on-station data; reviewed OSD's September 2014 report to Congress on increasing time-on-station; and interviewed OSD and service officials.

What GAO Found

The Department of Defense (DOD) has experienced an overall increase in Permanent Change of Station (PCS) per-move costs since 2001. GAO's analysis of DOD budget data shows that average PCS per-move costs, after accounting for inflation, increased by 28 percent from fiscal years 2001 to 2014. However, GAO's review of the services' annual budget materials found that the services have not reported complete and consistent PCS data, thereby limiting the extent to which DOD can identify and evaluate changes occurring within the PCS program. For example, the services did not completely or consistently report budget data on non-temporary storage costs, temporary lodging expenses, or tour extension payments. Program changes and factors outside the program can affect PCS costs. The specific factors driving the growth in per-move costs are unclear, however, because DOD does not periodically evaluate whether the PCS program is efficiently supporting requirements to relocate personnel. DOD therefore is not in a position to identify and evaluate changes that may be occurring over time in PCS per-move costs, or to take steps to manage and control cost growth.
DOD does not have information for determining whether personnel are meeting time-on-station requirements. DOD guidance specifies time-on-station lengths for U.S. and overseas locations and also allows for personnel to move prior to reaching these lengths if they qualify for an exception or obtain a waiver. However, DOD does not have complete or consistent data on the reasons why PCS moves occur prior to reaching specified lengths, because the services (1) do not maintain required data on their usage of exceptions and (2) do not have a requirement to maintain data on their usage of waivers. Moreover, availability of service data on time-on-station lengths is limited and varies by service. For example, each service has different years of available data. In addition, one service provided time-on-station data for officers and enlisted personnel separately, and these data covered different time periods.
In its September 2014 report to Congress on increasing time-on-station, the Office of the Secretary of Defense (OSD) addressed the elements that were specifically identified in congressional direction. OSD also used approaches consistent with generally accepted research standards in preparing its report. Nonetheless, OSD could have included additional information, such as more explicitly discussing constraints and information about the model used to develop cost savings estimates, and thereby improved the utility of the report for decision makers. The report stated that DOD plans to take actions aimed at extending servicemembers' time-on-station, which OSD believes could reduce PCS costs. However, without more complete and consistent data on both PCS costs and the use of exceptions and waivers, DOD does not have the information it needs for evaluating whether the implementation of its planned actions will be effective in extending time-on-station lengths and reducing PCS costs.

What GAO Recommends

GAO recommends that DOD, in coordination with the services, take actions to report complete and consistent PCS budget data; conduct periodic evaluations of the PCS program; and address limitations on the availability of data on exceptions and waivers for PCS moves that occur prior to reaching minimum time-on-station lengths. DOD generally agreed with the recommendations.