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<classification authority="sudocs">GA 1.13:NSIAD-00-168</classification>
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 <subject>Defense budgets</subject>
 <subject>Defense contingency planning</subject>
 <subject>Cost analysis</subject>
 <subject>Military training</subject>
 <subject>Military intervention</subject>
 <subject>Foreign military assistance</subject>
 <subject>Education or training costs</subject>
 <subject>Supplemental appropriations</subject>
 <subject>Armed forces abroad</subject>
 <subject>Combat readiness</subject>
 <identifier>Overseas Contingency Operations Transfer Fund</identifier>
 <identifier>Kosovo (Serbia)</identifier>
 <identifier>Bosnia</identifier>
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 <title>Defense Budget: Fiscal Year 2000 Contingency Operations</title>
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<abstract>Pursuant to a congressional request, GAO provided information on
Department of Defense&apos;s (DOD) contingency operations costs and funding
for fiscal year (FY) 2000, focusing on: (1) how DOD components identify
incremental costs in support of contingency operations; and (2) on the
need for, and average cost of, mission rehearsal exercises conducted by
the Army in preparation for contingency deployments.&lt;p/&gt;GAO noted that: (1) DOD estimates all ongoing contingency operations in
FY 2000 will cost $4.7 billion, with operations in the Balkans and
Southwest Asia accounting for over 99 percent of that total; (2) to
date, DOD has received about $2.65 billion for FY 2000 contingency
operations; (3) Congress appropriated $396 million directly to the
services&apos; military personnel accounts; (4) the remaining $2.3 billion
came from the Overseas Contingency Operations Transfer Fund, which
Congress created to provide funding to DOD components for contingency
costs; (5) in February 2000, the President submitted a request for an
emergency supplemental appropriation of about $2.05 billion for
contingency operations in Kosovo and East Timor for FY 2000; (6) the
supplemental request is pending; (7) nevertheless, if the supplemental
is not enacted, Army officials report that they will have to reduce
overall operation and maintenance spending in late July to cover the
shortfall in contingency operations costs; (8) the Air Force and the
Navy&apos;s Atlantic and Pacific Fleets use different methodologies to
calculate their costs for flying hours in support of contingencies; (9)
the DOD regulation on contingency operations costs permits different
methodologies, but this practice results in different rates of
reimbursement for similar levels of activity; (10) the Air Force is
seeking $47.2 million in the supplemental appropriation request to
repair or restore infrastructure used during contingency operations in
Kosovo; (11) no other service is seeking similar reimbursement in the
budget request; (12) DOD&apos;s regulation does not provide for whether
maintenance of home station infrastructure can be an allowable
incremental cost; (13) however, DOD officials believe that some home
station costs may be attributable to contingency operations and plan to
revise the regulation; and (14) exercise costs, which average about
$9-$15 million are offset against the costs that would have been
incurred for other exercises or training that the units had scheduled
before deployment was tasked but which were cancelled or modified due to
the deployment.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-00-168</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Defense budgets</topic>
 <topic>Defense contingency planning</topic>
 <topic>Cost analysis</topic>
 <topic>Military training</topic>
 <topic>Military intervention</topic>
 <topic>Foreign military assistance</topic>
 <topic>Education or training costs</topic>
 <topic>Supplemental appropriations</topic>
 <topic>Armed forces abroad</topic>
 <topic>Combat readiness</topic>
 <topic>Overseas Contingency Operations Transfer Fund</topic>
 <topic>Kosovo (Serbia)</topic>
 <topic>Bosnia</topic>
</subject>
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  <title>United States Code</title>
  <partNumber>Title 41 Section 11</partNumber>
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 <identifier type="USC citation">41 U.S.C. 11</identifier>
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