Force Structure: Cost of Two Additional Army Divisions Could Be
Significant (Briefing Report, 09/12/94, GAO/NSIAD-94-238BR).

By retaining 12 divisions rather than the 10 recommended by the Defense
Department's Bottom Up Review, the Army would incur additional expenses
during fiscal years 1995-99 of anywhere from $1.2 billion to more than
$4.9 billion, depending on how it decided to staff the two divisions.
One option would be for the Army to staff these components by
transferring military personnel from noncombat military positions to
positions in the division base and echelon above division and hiring
civilians to fill the vacant noncombat jobs. This option would entail
additional Army payroll of about $3.7 billion. Another option would be
for the Army to staff the division bases and echelons above division by
drawing from other existing combat units. Although the Army would not
incur any salary costs under this option, the Army views it as
undesirable because it would deplete the Army's force structure. It is
possible that the Army could incur an additional $4.9 billion over a
six-year time period because retaining two additional divisions
precludes the Army from closing two division installations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-238BR
     TITLE:  Force Structure: Cost of Two Additional Army Divisions 
             Could Be Significant
      DATE:  09/12/94
   SUBJECT:  Combat readiness
             Defense contingency planning
             Strategic mobility forces
             Army personnel
             Army facilities
             Federal agency reorganization
             Military cost control
             Personnel management
             Comparative analysis
             Cost analysis
IDENTIFIER:  DOD Bottom-Up Review
             
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