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Tuesday, August 16, 2005

GAO says Navy overestimated savings in base closings

In the latest episode of the military caught using inflated figures in their savings analysis to justify closing the sub base in Groton, The General Accounting Office has found that the Navy overestimated the savings in closing of the sub base by as much as 400 million dollars.

From the Norwich Bulletin

David Walker, comptroller general of the United States, noted in the letter the Navy did not use accurate figures in determining its cost analysis of the base closure and miscalculated the number of billets -- civilian and military positions -- to be eliminated in its initial calculations.

"Our analysis showed that the 20-year net present value savings decreased from $1.6 billion to $1.2 billion, and the pay-back period increased from three to four years," Walker wrote.

The GAO called into question some of the Pentagon assumptions in its initial July 1 report to the BRAC commission. The closer look at the Navy's projections regarding Groton came as a result of BRAC commission questions during a July 18 hearing in Washington.

The latest discovery of flawed projections comes as the commission nears the beginning of its final deliberations next week, and amid strong criticism from commissioners over Pentagon savings projections that appear inflated. In a New York Times interview during the weekend, eight of the nine commission members said they don't trust the Defense Department projections and would rely on the commission staff's independent review of the Pentagon data.

"These findings by the GAO are yet another independent confirmation that the Pentagon's numbers simply don't add up," U.S. Sen. Christopher J. Dodd, D-Conn., said Monday.