Rapid Fire July 2, 2012: Base Realignment and… Construction

• The Government Accountability Office updated its cost estimates of the last round of US base realignments and closures (BRAC 2005) and concluded that net savings came at less than 28% of the $35.6B originally expected. Ironically the main culprit is one-off construction costs that ended up much higher than anticipated. This report will no doubt be used in Congress as supporting evidence to push back against the Administration’s proposal to go through another realignment round, though BRACs are supposed to be driven not only by savings but also military value.

• Two other recent GAO reports of interest: DoD fuel management; Navy live vs. simulated training.

• The Czech Republic joined the group of “qualifying countries” recognized under US defense acquisition regulations (DFARS) as a “country with a reciprocal defense procurement [agreement with the US] in which both countries agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country”. It is the 22nd country on the list and the 2nd after Finland out of the former Soviet sphere of influence/control.