[Federal Register Volume 67, Number 137 (Wednesday, July 17, 2002)]
[Notices]
[Pages 46997-46998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17930]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4743-N-04]


Notice of Planned Closing of Rapid City, South Dakota Post-of-
Duty Station

AGENCY: Office of Inspector General, HUD.

ACTION: Notice of Planned Closing of Rapid City, South Dakota Post-of-
Duty Station.

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SUMMARY: This notice advises the public that the HUD Office of 
Inspector General (OIG) is closing its Rapid City, South Dakota post-
of-duty station, and also provides a cost-benefit analysis of the 
impact of the closure.

FOR FURTHER INFORMATION CONTACT: Bryan Saddler, Counsel to the 
Inspector General, Room 8260, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410, (202) 708-
1613. (This is not a toll free number.) A telecommunications device for 
hearing- and speech-impaired persons (TTY) is available at 1-800-877-
8339 (Federal Information Relay Services).

SUPPLEMENTARY INFORMATION:

[[Page 46998]]

Background

    In 1998, HUD/OIG established a single person post-of-duty station 
in Rapid City, South Dakota, to conduct an intensive investigation of 
allegations involving the Pine Ridge Indian Reservation. Specifically, 
the establishment of the office was intended to minimize substantial 
anticipated travel costs associated with having staff located in the 
Denver Regional Office perform the investigation. The investigation is 
now complete, and the need for a separate post-of-duty station in Rapid 
City is therefore unnecessary. The closing of this post-of-duty station 
will provide the HUD/OIG with the opportunity to generate cost savings 
associated with closing this station.
    Section 7(p) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(p)) provides that a plan for field reorganizations, 
which may involve the closing of any field or regional office of HUD 
may not take effect until 90 days after a cost-benefit analysis of the 
effect of the plan on the office in question is published in the 
Federal Register. The required cost-benefit analysis should include: 
(1) An estimate of cost savings anticipated; (2) an estimate of the 
additional cost which will result from the reorganization; (3) a 
discussion of the impact on the local economy; and (4) an estimate of 
the effect of the reorganization on the availability, accessibility, 
and quality of services provided for recipients of those services.
    Legislative history pertaining to section 7(p) indicates that not 
all reorganizations are subject to the requirements of section 7(p). 
Congress stated that ``[t]his amendment is not intended to [apply] to 
or restrict the internal operations or organization of the Department 
(such as the establishment of new or combination of existing 
organization units within a field office, the duty stationing of 
employees in various locations to provide on-site service, or the 
establishment or closing, based on workload, of small, informal offices 
such as valuations stations).'' (See House Conference Report No. 95-
1792, October 14, 1978 at 105-106.)
    The one-person Rapid City, South Dakota post-of-duty station is a 
single purpose duty station, and it is being closed based on workload 
rather than on a reorganization of HUD/OIG field offices. Although 
notice of the closing of the post-of-duty station is not subject to the 
requirements of section 7(p), as supported by the legislative history, 
HUD/OIG nevertheless prepared a cost-benefit analysis for its own use 
in determining whether to proceed with the closing. Through this 
notice, HUD/OIG advises the public of the closing of the Rapid City, 
South Dakota post-of-duty station and provides its cost-benefit 
analysis of the impact of the closure.

Impact of the Closure of the Rapid City, South Dakota Post-of-Duty 
Station

    HUD/OIG considered the costs and benefits of closing the Rapid 
City, South Dakota post-of-duty station, and is publishing its cost-
benefit analysis with this notice. In summary, HUD/OIG has determined 
that the closure will result in a cost savings, and, as a result of the 
size and limited function of the office, will cause no appreciable 
impact on the provision of authorized investigative services/activities 
in the area.

Cost Benefit Analysis

    A. Cost Savings: The Rapid City, South Dakota post-of-duty station 
currently costs approximately $2,200 per month for the space rental and 
associated overhead expenses to operate. Thus, closing the post-of-duty 
will result in annual savings of at least $26,000. In addition, by 
closing the office, HUD/OIG will not be required to incur additional 
costs associated with current plans to install high-speed computer 
access lines to and on the premises.
    B. Additional Costs: There are no offsetting expenses anticipated. 
Currently, no Special Agent is assigned to the Rapid City, South Dakota 
post-of-duty station, and, therefore, relocation costs are not 
associated with the closure.
    C. Impact on Local Economy: No appreciable impact on the local 
economy is anticipated. Another Federal agency has already expressed an 
interest in taking over the office space that HUD/OIG leases in Rapid 
City, South Dakota.
    D. Effect on Availability, Accessibility and Quality of Services 
Provided to Recipients of Those Services: The establishment of the 
Rapid City, South Dakota post-of-duty station was based largely on 
needs associated with HUD/OIG's investigation of the Pine Ridge Indian 
Reservation, which has since concluded. Further, as was the case prior 
to 1998, ordinary or less intensive fraud investigations in the Rapid 
City area can be effectively addressed by agents assigned to the Denver 
Regional Office.
    For the reasons stated in this notice, HUD/OIG intends to proceed 
to close its Rapid City, South Dakota post-of-duty station at the 
expiration of the 90-day period from the date of publication of this 
notice.

    Dated: July 9, 2002.
Kenneth M. Donohue,
Inspector General.
[FR Doc. 02-17930 Filed 7-16-02; 8:45 am]
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