The Department of Defense (DOD) considered AGMC’s work conducive to conversion to the private sector and recommended closing Newark AFB/AGMC through privatization and/or transferring the workload to other depots. DOD estimated that implementing its recommendation on Newark AFB/AGMC would cost $31.3 million, result in an annual savings of $3.8 million, and have an 8-year payback period for closure and relocation expenses. Other Closure and Privatization Issues

Other privatization issues relate to (1) proprietary data claims, (2) the effect of the closure on excess depot maintenance capacity, (3) the impact of privatizing core workload, (4) the segmentation of the metrology and calibration mission, and (5) the transfer of AGMC property and facilities to the local reuse commission. We discussed the Newark Air Force Base closure and privatization of the Aerospace Guidance and Metrology Center (AGMC) with Air Force officials responsible for implementing the BRAC decision at AGMC, Air Force Materiel Command (AFMC), and Air Force headquarters. The extent and timing of potential costs and savings, including the number of years, beginning with the date of completion of the closure or realignment.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the cost and savings issues related to the closure and privatization of the Newark Air Force Base Aerospace Guidance and Metrology Center (AGMC).

What GAO Found

GAO found that: (1) the justification for closing AGMC is not clear; (2) the Department of Defense (DOD) considers AGMC work conducive to conversion to the private sector and has recommended closing AGMC through privatization and transferring its workload to other depots; (3) DOD estimates that closing AGMC would cost $31.3 million and would result in annual savings of $3.8 million; (4) one-time closure costs have doubled in the past year and may still be underestimated; (5) the projected costs of conducting post-privatization operations could exceed the cost of current Air Force operations and reduce or eliminate projected savings; and (6) other closure and privatization issues create uncertainty about the validity of the Air Force's planned action, including the disposition of proprietary data claims, the effect of the closure on excess depot maintenance capacity, the segmentation of the metrology and calibration mission, and the transfer of AGMC property to a local reuse commission.