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<classification authority="sudocs">GA 1.13:NSIAD-97-209</classification>
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 <subject>Comparative analysis</subject>
 <subject>NATO military forces</subject>
 <subject>International organizations</subject>
 <subject>Cost analysis</subject>
 <subject>International cooperation</subject>
 <subject>NATO standardization</subject>
 <subject>Cost sharing (finance)</subject>
 <subject>Foreign military assistance</subject>
 <subject>Foreign governments</subject>
 <subject>Military interoperability agreements</subject>
 <identifier>Poland</identifier>
 <identifier>Hungary</identifier>
 <identifier>Czech Federal Republic</identifier>
 <identifier>Slovak Federal Republic</identifier>
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<titleInfo>
 <title>NATO Enlargement: Cost Estimates Developed to Date Are Notional</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the executive branch&apos;s
estimate of the cost of expanding the North Atlantic Treaty Organization
(NATO), focusing on: (1) the reasonableness of the study&apos;s key
assumptions; (2) verifying the pricing of individual cost elements and
identifying the basis for the pricing; (3) whether the estimate&apos;s major
cost categories and elements should be ascribed to NATO enlargement; (4)
factors that were not included in the study&apos;s cost estimate that could
affect enlargement costs; and (5) comparing the executive branch&apos;s cost
estimate with the Congressional Budget Office (CBO) and Rand Corporation
estimates. GAO did not independently estimate the cost of enlarging
NATO.&lt;p/&gt;GAO noted that: (1) its analysis of the Department of Defense&apos;s (DOD)
cost estimate to enlarge NATO indicates that its key assumptions were
generally reasonable and were largely consistent with the views of U.S.,
NATO, and foreign government officials; (2) however, DOD&apos;s lack of
supporting cost documentation and its decision to include cost elements
that were not directly related to enlargement call into question its
overall estimate; (3) because of the uncertainties associated with
enlargement and DOD&apos;s estimating procedures, the actual cost of NATO
enlargement could be substantially higher or lower than DOD&apos;s estimated
cost of about $27 billion to $35 billion; (4) GAO&apos;s comparison of DOD&apos;s
estimate with the RAND and CBO estimates does not indicate that the RAND
and CBO costs estimates are more reliable than DOD&apos;s; (5) GAO could not
verify DOD&apos;s pricing of many individual cost elements because DOD
officials did not develop sufficient supporting documentation; (6) DOD
included two major cost categories that cannot be directly attributed to
NATO&apos;s enlargement; (7) GAO found no direct link between the cost of
remedying current shortfalls in NATO&apos;s reinforcement capabilities and
enlargement of the alliance; (8) GAO questions whether all of DOD&apos;s new
member modernization and restructuring costs are attributable to NATO
enlargement; (9) DOD&apos;s third cost category, direct enlargement, contains
elements appropriately attributed to NATO enlargement, based on GAO&apos;s
analysis; (10) NATO enlargement could entail additional costs beyond
those included in the DOD estimate; (11) these costs could include
assistance, such as enhanced Partnership for Peace or other bilateral
assistance provided as a consolation to countries not invited to join
NATO in July 1997; (12) there will also be additional costs associated
with subsequent decisions to invite additional countries to join NATO;
(13) in addition, the United States may provide assistance to help new
members restructure and modernize their forces, which DOD acknowledged
but did not include in its estimate of the U.S. cost share; (14) CBO and
RAND developed a range of cost estimates for NATO enlargement, including
estimates that employ a defense strategy similar to DOD&apos;s; and (15)
several factors account for the differences between DOD&apos;s estimate and
the CBO and RAND estimates, including those estimates that employed
defense strategies similar to DOD&apos;s.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-97-209</identifier>
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 <searchTitle>GAO/NSIAD-97-209; NATO Enlargement: Cost Estimates Developed to Date Are Notional;
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<subject>
 <topic>Comparative analysis</topic>
 <topic>NATO military forces</topic>
 <topic>International organizations</topic>
 <topic>Cost analysis</topic>
 <topic>International cooperation</topic>
 <topic>NATO standardization</topic>
 <topic>Cost sharing (finance)</topic>
 <topic>Foreign military assistance</topic>
 <topic>Foreign governments</topic>
 <topic>Military interoperability agreements</topic>
 <topic>Poland</topic>
 <topic>Hungary</topic>
 <topic>Czech Federal Republic</topic>
 <topic>Slovak Federal Republic</topic>
 <topic>NATO</topic>
 <topic>NATO Partnership for Peace Program</topic>
 <topic>NATO Security Investment Program</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 201 (104th Congress)</title>
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 <identifier type="public law citation">Public Law 104-201</identifier>
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