Military Bases: Transfer of the 458th Operations Group to McGuire Air
Force Base (Briefing Report, 07/28/98, GAO/NSIAD-98-207BR).

Pursuant to a congressional request, GAO provided information on the
transfer of the 458th Operations Group from Barksdale Air Force Base
(AFB), Louisiana, to McGuire AFB, New Jersey, focusing on: (1) factors
that prompted the transfer of this unit and decisions of the 1993 Base
Realignment and Closure (BRAC) Commission that affected Barksdale AFB;
(2) the estimated costs, savings, and operational benefits of the BRAC
decisions affecting Barksdale; and (3) general indicators of economic
conditions in the Barksdale area.

GAO noted that: (1) movement of the 458th Operations Group and its 19
KC-10s from Barksdale to McGuire was a result of restructuring by the
Air Force in response to the end of the Cold War and decisions by the
1993 BRAC Commission; (2) at the end of the Cold War, the Air Force's
mission changed to include contingency missions such as peacekeeping
operations and the ability to respond simultaneously to two major
regional conflicts; (3) to better support new requirements, the Air
Force created two new commands: the Air Combat Command and the Air
Mobility Command assigning all B-52s to the Air Combat Command and all
tanker and cargo aircraft, including KC-10s, to the Air Mobility
Command; (4) to establish a global reach capability, the Air Force and
Department of Defense recommended to the 1993 BRAC Commission that a
mobility wing be established on the east coast at Plattsburgh AFB, New
York, and on the west coast at Travis AFB, California; (5) however, the
BRAC Commission recommended that Plattsburgh be closed and that the east
coast mobility wing be located at McGuire; (6) to support the east coast
mobility wing, the 458th Operations Group and its 19 KC-10 aircraft were
reassigned from Barksdale to McGuire; (7) the Commission also
recommended closing Castle AFB, California, and K.I. Sawyer AFB,
Michigan, and recommended realigning Griffiss AFB, New York; (8) as a
result of these recommendations, 21 B-52 aircraft and the B-52 school
were relocated from these bases to Barksdale; (9) the BRAC Commission
estimated its recommended closures and realignments would result in net
annual recurring savings of $211 million once implementation costs to
close and realign these bases were offset; (10) as of March 31, 1998,
the Air Force had obligated $569 million for one-time implementation
costs to close and realign these four bases; (11) in addition, Air Force
officials stated that basing the KC-10s on the east coast has resulted
in numerous operational benefits; (12) while the movement of the KC-10s
from Barksdale caused concern about the economic impact on the
community, indications are that Barksdale continues to provide economic
benefits to the Shreveport-Bossier City area; (13) currently, Barksdale
contributes approximately $447.7 million to the local community; and
(14) in addition, from 1994 to 1996 total personal income increased 7.6
percent, per capita income increased 7.2 percent, and unemployment
decreased by 1 percent.

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

 REPORTNUM:  NSIAD-98-207BR
     TITLE:  Military Bases: Transfer of the 458th Operations Group to 
             McGuire Air Force Base
      DATE:  07/28/98
   SUBJECT:  Base closures
             Base realignments
             Air Force bases
             Military cost control
             Military aircraft
             Defense economic analysis
             Facility transfer
             Defense contingency planning
IDENTIFIER:  KC-10 Aircraft
             B-52 Aircraft
             
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Cover
================================================================ COVER


Briefing Report to the Honorable
Mary L.  Landrieu, U.S.  Senate

July 1998

MILITARY BASES - TRANSFER OF THE
458TH OPERATIONS GROUP TO MCGUIRE
AIR FORCE BASE

GAO/NSIAD-98-207BR

Military Bases

(709326)


Abbreviations
=============================================================== ABBREV

  AFB - Air Force Base
  BRAC - Base Realignment and Closure

Letter
=============================================================== LETTER


B-279510

July 28, 1998

The Honorable Mary L.  Landrieu
United States Senate

Dear Senator Landrieu: 

This report responds to your request for information regarding the
transfer of the 458th Operations Group from Barksdale Air Force Base
(AFB), Louisiana, to McGuire AFB, New Jersey.  Specifically, this
report discusses (1) factors that prompted the transfer of this unit
and decisions of the 1993 Base Realignment and Closure (BRAC)
Commission that affected Barksdale AFB; (2) the estimated costs,
savings, and operational benefits of the BRAC decisions affecting
Barksdale; and (3) general indicators of economic conditions in the
Barksdale (Shreveport-Bossier City, Louisiana) area. 

We briefed your staff on the results of our work on May 6, 1998. 
This report summarizes and updates the information presented at that
briefing. 


   BACKGROUND
------------------------------------------------------------ Letter :1

Barksdale AFB was established in 1933 and has served primarily as a
Strategic Air Command base and home for bomber aircraft.  In 1958,
Barksdale received its first B-52 Stratofortresses, and in 1981,
KC-10 Extender aerial refuelers were assigned to Barksdale to support
B-52 operations.  By 1993, the 458th Operations Group at Barksdale
had
19 assigned KC-10s. 

In the early 1990s, the Air Force restructured its forces to prepare
for the post-Cold War environment.  As part of this restructuring,
the Air Force realigned the Strategic Air Command, the Tactical Air
Command, and the Military Airlift Command into the Air Combat Command
and the Air Mobility Command. 

This restructuring, as well as BRAC 1993 decisions,\1 resulted in the
relocation of KC-10 refuelers to the East and West coasts to better
support air mobility requirements.  In addition, B-52s from three
bases to be closed or realigned were relocated to Barksdale. 

Today, as part of the Air Combat Command, 57 B-52 aircraft are
assigned to Barksdale.  The 8th Air Force, the 2nd Bomb Wing, various
support and operations groups, and the only Air Force B-52 Reserve
Wing are also headquartered at Barksdale. 


--------------------
\1 The Congress authorized four rounds of BRACs between 1988 and
1995; the last three rounds were completed under special legislative
authority enacted in 1990 (P.L.  101-510).  Under this legislation,
an independent BRAC Commission reviewed recommendations for closure
or realignment submitted by the Secretary of Defense.  The Commission
either approved or modified the Secretary's recommendations and
ultimately forwarded its own recommendations to the President, who in
each instance forwarded the Commission's recommendations to the
Congress.  Each time, the Congress had 45 days in which to enact a
joint resolution should it desire to disapprove the
recommendations--in each instance the lack of action by the Congress
resulted in the recommendations becoming effective. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :2

The movement of the 458th Operations Group and its 19 KC-10s from
Barksdale to McGuire was a result of restructuring by the Air Force
in response to the end of the Cold War and decisions by the 1993 Base
Realignment and Closure Commission.  At the end of the Cold War, the
Air Force's mission changed to include contingency missions such as
peacekeeping operations and the ability to respond simultaneously to
two major regional conflicts.  To better support new requirements,
the Air Force created two new commands:  the Air Combat Command and
the Air Mobility Command.  The Air Combat Command was assigned all
B-52s.  All tanker and cargo aircraft, including KC-10s, were
assigned to the Air Mobility Command. 

To establish a "global reach" capability, the Air Force and the
Department of Defense recommended to the 1993 Commission that a
mobility wing be established on the East Coast at Plattsburgh Air
Force Base, New York, and on the West Coast at Travis Air Force Base,
California.  However, the Commission recommended that Plattsburgh be
closed and that the East Coast mobility wing be located at McGuire. 
To support the East Coast mobility wing, the 458th Operations Group
and its 19 KC-10 aircraft were reassigned from Barksdale to
McGuire.\2

The Commission also recommended closing Castle Air Force Base,
California, and K.I.  Sawyer Air Force Base, Michigan, and
recommended realigning Griffiss Air Force Base, New York.  As a
result of these recommendations, 21 B-52 aircraft and the B-52 school
were relocated from these bases to Barksdale. 

The Commission estimated its recommended closures and realignments
would result in net annual recurring savings of $211 million once
implementation costs to close and realign these bases were offset. 
As of March 31, 1998, the Air Force had obligated $569 million for
one-time implementation costs to close and realign these four bases. 
In addition, Air Force officials stated that basing the KC-10s on the
East Coast has resulted in numerous operational benefits, such as
providing quick initial crisis response to locations around the
world, making more efficient use of KC-10s to transport both
personnel and equipment, and eliminating approximately 1,400 miles
previously required to support operations in Europe. 

While the movement of the KC-10s from Barksdale caused concern about
the economic impact on the community, indications are that Barksdale
continues to provide economic benefits to the Shreveport-Bossier City
area.  Currently, Barksdale contributes approximately $447.7 million
to the local community.  In addition, from 1994 to 1996 total
personal income increased 7.6 percent, per capita income increased
7.2 percent, and unemployment deceased by 1 percent. 


--------------------
\2 The assets of the 458th were assigned to the 305th Operations
Group at McGuire AFB. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :3

We requested comments on a draft of this product from the Secretary
of Defense.  On July 2, 1998, the Office of the Deputy Assistant
Secretary of the Air Force (Installations) responded orally and
concurred with the contents of the report. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :4

To develop information about the factors that led to the transfer of
the 458th Operations Group from Barksdale to McGuire and the
estimated costs, savings, and operational benefits of the BRAC
decisions, we interviewed officials from various Air Force BRAC
offices and both Barksdale and McGuire.  Additionally, we reviewed
documents obtained from Air Force officials at Barksdale, McGuire,
the Air Mobility Command, and Air Force BRAC offices.  We also
reviewed documents related to the 1993 BRAC Commission's decisions
and historical records related to the Air Force's reorganization. 

The Air Force was not able to provide estimated cost information
specifically related to the movement of the 19 KC-10s from Barksdale
due to (1) changes in the Air Force's accounting codes during the
move, (2) unavailability of records due to the age of the BRAC
decision, and (3) the BRAC Commission not estimating the costs of
moving the KC-10s from Barksdale to McGuire.  We obtained estimated
budget information for construction projects necessary to accommodate
the transfer of B-52s to Barksdale and the transfer of KC-10s to
McGuire.  We did not independently verify the cost and savings data
provided by the Air Force but did obtain documentation relating to
and supporting reported figures. 

To obtain information regarding current economic conditions in the
Shreveport-Bossier City, Louisiana, area, we obtained the most
current total personal income and per capita income data from the
Bureau of Labor Statistics and the Bureau of Economic Analysis. 

We conducted our review between February and June 1998 in accordance
with generally accepted government auditing standards. 


---------------------------------------------------------- Letter :4.1

We are sending copies of this report to the Chairmen and Ranking
Minority Members of the Senate Committee on Armed Services and to the
House Committee on National Security; the Secretaries of Defense and
the Air Force; and the Director, Office of Management and Budget.  We
will also make copies available to others upon request. 

If you have any questions about this report, please contact me at
(202) 512-8412.  Major contributors to this report were Barry W. 
Holman, Associate Director; Ronald L.  Berteotti, Assistant Director;
Patricia J.  Nichol, Evaluator-in-Charge; and Oliver G.  Harter,
Senior Evaluator. 

Sincerely yours,

David R.  Warren, Director
Defense Management Issues


Briefing Section I AIR FORCE
RESTRUCTURING
============================================================== Letter 



   (See figure in printed
   edition.)


   MAJOR RESTRUCTURING OF U.S. 
   AIR FORCE 1991-93
------------------------------------------------------------ Letter :5


The end of the Cold War resulted in changes to mission requirements
and ultimately in a major reorganization of the Air Force.  In the
early 1990s, the Air Force reevaluated its basing strategies and
disbanded the old Cold War major commands. 

The Air Force's new mission requires the ability to respond to two
nearly simultaneous major regional conflicts and other contingency
operations such as peacekeeping.  To support this new mission, the
Strategic Air Command, the Tactical Air Command, and the Military
Airlift Command were replaced by two new commands--the Air Combat
Command and the Air Mobility Command. 

The Air Mobility Command, headquartered at Scott Air Force Base,
Illinois, has responsibility for tanker and cargo aircraft, and the
Air Combat Command, headquartered at Langley Air Force Base,
Virginia, has responsibility for combat aircraft. 


Briefing Section II BRAC 1993
DECISIONS
============================================================== Letter 



   (See figure in printed
   edition.)


   EAST AND WEST COAST MOBILITY
   WINGS PROPOSED TO BRAC 1993
   COMMISSION
------------------------------------------------------------ Letter :6


To guarantee a "global reach" capability, the Air Force and the
Department of Defense recommended to the 1993 Base Realignment and
Closure (BRAC) Commission that an East Coast mobility wing be
established at Plattsburgh Air Force Base (AFB), New York, and a West
Coast mobility wing be established at Travis AFB, California.  These
wings were to comprise KC-10s, KC-135s, C-141s and other aircraft
used for support operations.  The Air Force evaluated McGuire AFB,
New Jersey, and Griffiss and Plattsburgh AFBs, New York, as possible
locations for the East Coast mobility wing.  The Air Force ranked
Plattsburgh best in capability to support the air mobility wing due
primarily to its location and its ability to load aircraft with
supplies or personnel. 



   (See figure in printed
   edition.)


   MOBILITY WINGS RECOMMENDED BY
   BRAC 1993 COMMISSION
------------------------------------------------------------ Letter :7


The BRAC 1993 Commission found that the Department of Defense did not
adequately assess the military value of McGuire AFB and recommended
that the base be retained as an active installation.  The Commission
recommended that McGuire be realigned to become the Air Mobility
Command eastern wing site, with the addition of KC-10 tankers to
supplement its C-141B and Air National Guard KC-135s.  The Commission
also recommended that the 438th and 514th Airlift Wings remain at
McGuire and that the 458th Operations Group and its 19 KC-10s move
from Barksdale AFB, Louisiana, to McGuire.  The Commission added
Plattsburgh AFB, New York, to the list of installations to be
considered for closure or realignment and ultimately recommended its
closure. 




   (See figure in printed
   edition.)


   BRAC 1993 DECISIONS AFFECTING
   BARKSDALE AIR FORCE BASE
------------------------------------------------------------ Letter :8


The BRAC 1993 Commission made other recommendations that directly
affected Barksdale.  The Commission recommended that K.I.  Sawyer
AFB, Michigan, be closed and Griffiss be realigned and that 13 B-52s
from these two bases be transferred to Barksdale.  The Commission
also revised a 1991 BRAC Commission recommendation to close Castle
AFB, California, and transfer the B-52 combat crew training mission
to Fairchild AFB, Washington.  As a result, eight B-52 aircraft and
the B-52 training unit were transferred from Castle to Barksdale. 
Currently, 57 B-52 aircraft are assigned to Barksdale. 


Briefing Section III COSTS AND
SAVINGS OF BRAC 1993 DECISIONS
============================================================== Letter 



   (See figure in printed
   edition.)


   REPORTED OBLIGATIONS ASSOCIATED
   WITH BRAC DECISIONS AFFECTING
   BARKSDALE
------------------------------------------------------------ Letter :9


As of March 31, 1998, the Air Force had reported obligations\1 of
approximately $569 million to close or realign the four bases.  These
estimated one-time costs are associated with operations of the Air
Force Base Conversion Agency Operating Location and include
utilities, caretaker costs, and civilian pay; environmental
restoration of the affected bases, to include groundwater monitoring
plans; underground storage tank removals; and closure of oil/water
separator sites. 




   (See figure in printed
   edition.)


--------------------
\1 The Department of Defense's financial regulations define
obligations as amounts of orders placed, contracts awarded, services
received, and similar transactions during an accounting period that
will require payments.  Obligations may not reflect actual final
costs. 


   ESTIMATED SAVINGS ASSOCIATED
   WITH BRAC DECISIONS AFFECTING
   BARKSDALE
----------------------------------------------------------- Letter :10


In making its recommendations, the BRAC 1993 Commission estimated net
annual recurring savings for the four bases to be $211 million. 
These savings are expected to begin to accrue once implementation
costs are offset, typically within the 6-year period provided by law
for implementing BRAC decisions.  The estimated savings were to
result from reductions in Air Force personnel; reductions to base
operating support costs; and, where applicable, proceeds from sale of
real property at closed bases.  The BRAC 1993 Commission's report did
not identify specific savings for the McGuire realignment.  However,
this realignment facilitated the closing or realignment of other
locations from which savings were expected. 




   (See figure in printed
   edition.)


   ESTIMATED CONSTRUCTION COSTS
   ASSOCIATED WITH BRAC 1993
   DECISIONS
----------------------------------------------------------- Letter :11


We were not able to identify all of the implementation costs specific
to Barksdale and McGuire due to changes in Air Force accounting codes
and the unavailability of records because of the age of the BRAC
decision.  However, the Air Force did identify military construction
projects specifically associated with the transfer of the KC-10s to
McGuire and the transfer of B-52s to Barksdale.  These costs are
included in the one-time closure or realignment costs. 

To accommodate the KC-10s transferred from Barksdale, the Air Force
identified 20 required military constructions projects at McGuire
with an estimated cost of $116.9 million.  These projects included a
three-bay hangar, ramp upgrade, maintenance unit facility, road
repair, and base supply facility.  As of April 1998, 14 projects had
been completed and contracts had been awarded for the remaining
projects.  In addition, family housing under construction at McGuire
is estimated to cost $15.9 million. 

To accommodate the B-52s at Barksdale, the Air Force needed five
military construction projects estimated to cost $15.4 million. 
These projects included B-52 simulator facilities, student officers'
quarters, and an academic facility.  According to a Barksdale
official, all of these BRAC 1993 projects have been completed. 


Briefing Section IV OPERATIONAL
BENEFITS OF RELOCATING KC-10S
============================================================== Letter 



   (See figure in printed
   edition.)


   OPERATIONAL BENEFITS OF
   REASSIGNING KC-10S TO MCGUIRE
   AIR FORCE BASE
----------------------------------------------------------- Letter :12


According to the Vice Commander at McGuire, establishing an East
Coast mobility wing has resulted in numerous operational benefits
such as the ability to (1) provide quick initial crisis response to
locations around the world by combining airlift and refueling
capability at a single location and (2) use the KC-10 more
efficiently to transport both personnel and equipment.  In addition,
relocating the 19 KC-10s from Barksdale eliminated approximately
1,400 miles that previously had to be flown to support aircraft
headed to Europe by the northern route. 


Briefing Section V ECONOMIC
INDICATORS
============================================================== Letter 



   (See figure in printed
   edition.)


   FISCAL YEAR 1997 ECONOMIC
   IMPACT OF BARKSDALE AFB ON
   LOCAL COMMUNITY
----------------------------------------------------------- Letter :13


Barksdale has continued to provide economic benefits to the
Shreveport-Bossier City area.  In fiscal year 1997, Barksdale's
Economic Impact Analysis report showed that the base contributed
approximately $447.7 million to the local economy in the form of
payroll, expenditures, and jobs created from construction projects. 

Other indicators of the economic well-being of the area include the
unemployment rate, total personal income, and per capita income. 
According to data provided by the Bureau of Labor Statistics and the
Bureau of Economic Analysis, (1) the unemployment rate declined from
8.2 percent in 1994 to 7.2 percent in 1996; (2) the
Shreveport-Bossier City area had a total personal income of $7.865
million in 1996, an increase of 7.6 percent from 1994; and (3) the
area's per capita personal income was $20,756 in 1996, an increase of
7.2 percent from 1994.\1 The data also showed that the military is
the second-largest income provider by people employed in the
Shreveport-Bossier City metropolitan area. 

According to the 2nd Bomb Wing Commander at Barksdale, the economic
impact from the transfer of the KC-10s to McGuire was offset by the
transfer of additional B-52s to Barksdale. 


--------------------
\1 Reported in current year dollars. 


*** End of document. ***