	Introduction

Between 1988 and 1995, the Department of Defense (DOD), acting under special legislative authorities, conducted four rounds of base realignments and closures (BRAC). At the request of Mr. John E. Sununu, House of Representatives, we are providing information that addresses (1) DOD’s progress in completing action on BRAC recommendations and transferring unneeded base property to other users, (2) the precision of DOD’s estimates of BRAC costs and savings, (3) environmental cleanup progress and estimated associated costs, and (4) reported trends in economic recovery in communities affected by base closures. To assess the completeness of DOD’s cost and savings estimates for BRAC-related actions, we reviewed data included in the estimates. The comments have been summarized in chapters 2 through 5 and are presented in their entirety in appendix V.

	Most BRAC Recommendations Completed, but Transfer of Unneeded Base Property Is Proceeding Slowly

By the end of fiscal year 1998, DOD had completed action on about 85 percent of 451 BRAC commissions’ recommendations for the four BRAC rounds. About 464,000 acres were designated as unneeded real property at closing or realigning locations, but, as of March 1998, only about 31 percent of the property designated for nonfederal users had actually been transferred by formal deed, and only 8 percent of the property designated for federal entities had actually been transferred. According to a DOD official, DOD has completed 77 of 152 major recommendations. As of September 30, 1997, 46 percent, or about 213,000 acres, of the unneeded BRAC property was to be retained by the federal government; 33 percent, or about 154,000 acres, was slated for nonfederal users such as state and local authorities or private parties; and the disposition of 21 percent, or about 98,000 acres had not yet been determined. BRAC Savings Estimates Are Not Routinely Updated, but Evidence Points to Substantial Savings

Through 2001, DOD estimates it will achieve a net savings of about  $14 billion as a result of BRAC actions. Beyond 2001, DOD expects to save about $5.7 billion annually. While these costs are incurred by the federal government, they are not funded through BRAC budget accounts. 3.1). 4 for a discussion of DOD’s environmental program for BRAC bases). Although DOD has not compiled a total cost estimate, available DOD data indicate that BRAC environmental costs are likely to exceed $9 billion, of which at least $2.4 billion is needed to continue restoration after the BRAC implementation authority expires in fiscal  year 2001. Cleanup is expected to continue many years beyond that time and the potential for higher costs exists, given uncertainties associated with the extent of cleanup of UXO and monitoring of cleanup remedies needed at selected sites. The type of contamination also affects cleanup costs. While the services noted that estimates were initially developed based on the expectation that property would be cleaned to the highest standard, this has not always occurred.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed: (1) the Department of Defense's (DOD) progress in completing action on military base realignments and closures (BRAC) recommendations and transferring unneeded base property to other users; (2) the precision of DOD's estimates of BRAC costs and savings; (3) environmental cleanup progress and estimated associated costs; and (4) reported trends in economic recovery in communities affected by base closures.

What GAO Found

GAO noted that: (1) by September 30, 1998, DOD had completed actions on about 85 percent of the four BRAC commissions' 451 recommendations; (2) in taking actions on the recommendations, DOD declared about 464,000 acres of base property as excess; (3) as of September 30, 1997, 46 percent of the unneeded BRAC property was to be retained by the federal government, 33 percent was slated for nonfederal users, and the disposition of 21 percent had not yet been decided; (4) 8 percent of the property slated for federal use has been transferred, while 31 percent of the property slated for nonfederal use has been transferred; (5) DOD officials noted a number of obstacles that must be overcome before transfer can occur; (6) by 2001, DOD estimates it will have spent $23 billion on BRAC and saved $37 billion in costs it would have incurred if BRAC actions had not occurred, for a net savings of $14 billion; (7) beyond 2001, when the last of the four rounds is complete, DOD expects to save $5.7 billion annually as a result of BRAC actions; (8) however, the cost estimates exclude certain types of federally incurred costs, some of which are funded outside of DOD BRAC budget accounts, while the savings estimates have not been routinely updated and thus are not precise; (9) a major cost factor in BRAC actions, as well as a major obstacle to the disposal of unneeded property, is the need for environmental cleanup at BRAC bases; (10) both the eventual cost and the completion date for the BRAC-related environmental program are uncertain; (11) however, available DOD data indicate that the total environmental cost will likely exceed $9 billion and that cleanup activities will extend well beyond 2001; (12) the potential for higher costs exists, given uncertainties associated with the extent of cleanup of unexploded ordnance and monitoring of cleanup remedies needed at selected sites; (13) DOD has made progress since the earlier BRAC years when it was investigating sites for contamination; and (14) the majority of communities surrounding closed bases are faring well economically in relation to the national average, according to the latest data available at the time of GAO's analysis, and show some improvement since the time closures were beginning in 1988.