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 <subject>Naval facilities</subject>
 <subject>Federal facility relocation</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Reductions in force</subject>
 <subject>Military cost control</subject>
 <subject>Defense economic analysis</subject>
 <subject>Future budget projections</subject>
 <subject>Real estate leases</subject>
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 <title>Navy Laboratories: Concerns Regarding the Naval Undersea Warfare Center&apos;s Suffolk Facility</title>
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<abstract>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&apos;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&apos;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&apos;s planned growth
and the desire to consolidate the detachment&apos;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&apos;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. GAO summarized this report in testimony
before Congress; see: Navy Laboratories: Issues Concerning the Naval
Undersea Warfare Center&apos;s Suffolk Facility, by Donna M. Heivilin,
Director of Defense Management and NASA Issues, before the Senate
Committee on Governmental Affairs. GAO/T-NSIAD-94-211, June 22, 1994
(seven pages).</abstract>
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<subject>
 <topic>Naval facilities</topic>
 <topic>Federal facility relocation</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Reductions in force</topic>
 <topic>Military cost control</topic>
 <topic>Defense economic analysis</topic>
 <topic>Future budget projections</topic>
 <topic>Real estate leases</topic>
 <topic>Laboratories</topic>
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 <topic>Suffolk (VA)</topic>
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