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<classification authority="sudocs">GA 1.13:HR-97-7</classification>
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 <subject>Defense cost control</subject>
 <subject>Military downsizing</subject>
 <subject>Logistics</subject>
 <subject>Defense procurement</subject>
 <subject>Base closures</subject>
 <subject>Base realignments</subject>
 <subject>Military training</subject>
 <subject>Strategic planning</subject>
 <subject>Future budget projections</subject>
 <subject>Risk management</subject>
 <identifier>DOD Base Force Plan</identifier>
 <identifier>DOD Bottom-Up Review</identifier>
 <identifier>DOD Future Years Defense Program</identifier>
 <identifier>Defense Business Operations Fund</identifier>
 <identifier>DOD Roles and Missions Report</identifier>
 <identifier>Sacramento (CA)</identifier>
 <identifier>San Antonio (TX)</identifier>
 <identifier>Louisville (KY)</identifier>
 <identifier>Charleston (SC)</identifier>
 <identifier>Colorado Springs (CO)</identifier>
 <identifier>Washington</identifier>
 <identifier>North Carolina</identifier>
 <identifier>Armed Forces Health Professions Scholarship Program</identifier>
 <identifier>High Risk Series 1997</identifier>
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<titleInfo>
 <title>High-Risk Series: Defense Infrastructure</title>
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<abstract>GAO reviewed the difficult process of reducing the Department of
Defense&apos;s (DOD) infrastructure, focusing on: (1) the need for
infrastructure reductions and obstacles that have hindered DOD&apos;s ability
to achieve significant cost savings in this area; (2) DOD&apos;s future years
funding plan for infrastructure; and (3) areas in which GAO has
identified opportunities for reductions.&lt;p/&gt;GAO found that: (1) despite DOD&apos;s actions over the last 7 to 10 years to
reduce operations and support costs, billions of dollars are wasted
annually on inefficient and unneeded activities; (2) DOD has in recent
years substantially downsized its force structure, however, it has not
achieved commensurate reductions in operations and support costs; (3)
for fiscal year 1997, DOD estimates that about $146 billion, or almost
two thirds of its budget, will be for operations and support activities;
(4) these activities, which DOD generally refers to as its support
infrastructure, include maintaining installation facilities, providing
nonunit training to the force, providing health care to military
personnel and their families, repairing equipment, and buying and
managing spare part inventories; (5) reducing the cost of excess
infrastructure activities is critical to maintaining high levels of
military capabilities; (6) DOD has found that infrastructure reductions
are a difficult and painful process because achieving significant cost
savings requires up-front investments, the closure of installations, and
the elimination of military and civilian jobs; (7) DOD has also
recognized that opportunities to streamline and reengineer its business
practices could result in substantial savings, but it has made limited
progress in accomplishing this; (8) DOD has programmed reductions in
installation support funding due to base closures and realignments,
however, overall infrastructure funding is projected to remain
relatively constant through 2001; (9) breaking down cultural resistance
to change, overcoming service parochialism, and setting forth a clear
framework for a reduced defense infrastructure are key to avoiding waste
and inefficiency; (10) to do this, the Secretary of Defense and the
service Secretaries need to give greater structure to their efforts by
developing an overall strategic plan; (11) the plan needs to establish
time frames and identify organizations and personnel responsible for
accomplishing fiscal and operational goals; (12) in developing the plan,
DOD should consider using a variety of means to achieve reductions,
including such things as consolidations, privatization, outsourcing,
reengineering, and interservicing agreements; (13) DOD should also
consider the need and timing for future base realignment and closure
rounds, as suggested by the 1995 Base Realignment and Closure Commissio*</abstract>
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<identifier type="preferred citation">GAO/HR-97-7</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Defense cost control</topic>
 <topic>Military downsizing</topic>
 <topic>Logistics</topic>
 <topic>Defense procurement</topic>
 <topic>Base closures</topic>
 <topic>Base realignments</topic>
 <topic>Military training</topic>
 <topic>Strategic planning</topic>
 <topic>Future budget projections</topic>
 <topic>Risk management</topic>
 <topic>DOD Base Force Plan</topic>
 <topic>DOD Bottom-Up Review</topic>
 <topic>DOD Future Years Defense Program</topic>
 <topic>Defense Business Operations Fund</topic>
 <topic>DOD Roles and Missions Report</topic>
 <topic>Sacramento (CA)</topic>
 <topic>San Antonio (TX)</topic>
 <topic>Louisville (KY)</topic>
 <topic>Charleston (SC)</topic>
 <topic>Colorado Springs (CO)</topic>
 <topic>Washington</topic>
 <topic>North Carolina</topic>
 <topic>Armed Forces Health Professions Scholarship Program</topic>
 <topic>High Risk Series 1997</topic>
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