Navy Laboratories: Issues Concerning the Naval Undersea Warfare Center's
Suffolk Facility (Testimony, 06/22/94, GAO/T-NSIAD-94-211).

As part of the 1993 round of base closures, the Navy recommended closing
the Naval Undersea Warfare Center in Norfolk, Virginia and moving it to
Newport, Rhode Island, to reduce excess capacity.  Construction of the
Center's new facility in Suffolk, Virginia, had begun nearly a year
earlier and was nearing completion under a 20-year lease for a building
built to the Center's specifications.  The justification for the
building was originally submitted in 1987, before base closure
considerations and reduced Navy budgets.  It was based on the
detachment's existing leased spaces in the Norfolk area.  GAO concludes
that the Navy should not have entered into a long-term lease during a
period of downsizing.  If the Navy fails to find other occupants for the
building, it could be forced to spend more than $24 million in lease
costs over the course of the lease.  In addition, the Navy spent more
than $9 million on one-time relocation costs.  Before signing the lease,
the Navy had indications that the proposed facility might not be needed.
As a result, GAO believes that options other than a long-term lease
merited greater consideration.  In GAO's view, the decision to build the
Suffolk facility was questionable.  GAO found no indication that other
options were considered for acquiring space for a smaller detachment.

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

 REPORTNUM:  T-NSIAD-94-211
     TITLE:  Navy Laboratories: Issues Concerning the Naval Undersea 
             Warfare Center's Suffolk Facility
      DATE:  06/22/94
   SUBJECT:  Federal agency reorganization
             Naval facilities
             Naval warfare
             Navy procurement
             Laboratories
             Reductions in force
             Federal facility relocation
             Real estate leases
             Military cost control
             Facility construction
IDENTIFIER:  Suffolk (VA)
             Norfolk (VA)
             Newport (RI)
             
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