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<classification authority="sudocs">GA 1.13:GAO-01-473</classification>
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 <subject>Defense cost control</subject>
 <subject>Facility management</subject>
 <subject>Financial management</subject>
 <subject>Personnel management</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Military downsizing</subject>
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<titleInfo>
 <title>Defense Infrastructure: Commissary Reorganization Should Produce Savings but Opportunities May Exist for More</title>
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<abstract>In July 2000, the Defense Commissary Agency proposed changes to
its regional management structure that it expects will generate  
savings, improve efficiencies, and provide more effective	 
management of commissary operations. The plan calls for 	 
eliminating the two area offices within the Eastern Region and	 
consolidating most of the Eastern Region&apos;s operations at the	 
region&apos;s headquarters at Virginia Beach, Virginia. While the	 
Agency has not fully refined its cost and savings estimates, it  
appears that, by eliminating the Eastern Region&apos;s area offices	 
and consolidating those regional operations at its Virginia Beach
location, the Agency will produce savings and improve operations.
However, with the implementation of the plan comes a loss of	 
operational expertise in the closing offices that could 	 
potentially disrupt operations and customer service. Whether the 
Agency&apos;s proposed regional reorganization is the best approach	 
for achieving efficiencies is unclear because the Agency did not 
assess alternative structural approaches to improving regional	 
operations and creating efficiencies. The plan is limited because
it considers only the Eastern Region and not the totality of the 
regional structure, which is to be considered in the Agency&apos;s	 
follow-on study of the current reorganization plan. While the	 
closure of the area offices is likely to improve efficiency, the 
planned study to determine the optimum number of stores for the  
Agency&apos;s regions provides an additional opportunity for achieving
additional streamlining and improved regional operations and	 
efficiencies. In this regard, experience from commercial-sector  
retailers may provide useful insights into determining how to	 
shape the Agency&apos;s future regional structure.</abstract>
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<identifier type="preferred citation">GAO-01-473</identifier>
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 <topic>Defense cost control</topic>
 <topic>Facility management</topic>
 <topic>Financial management</topic>
 <topic>Personnel management</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Military downsizing</topic>
 <topic>Reductions in force</topic>
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