DEFENSE INFRASTRUCTURE: Commissary Reorganization Should Produce Savings but Opportunities May Exist for More
Abstract
Although the Defense Commissary Agency's proposed restructuring actions should generate annual savings after initial expenses are recouped, the Agency did not include all potential costs and savings in the estimates we reviewed in the July 2000 plan. In calculating the estimates associated with that proposal, Agency officials included only those expected costs and savings associated with personnel-related actions, such as personnel separation costs. While personnel-related actions are the primary cost and savings elements in the reorganization, the Agency did not include other potential costs and savings such as operational costs. After we discussed this issue with Agency officials, they revised their cost and savings estimates. But the estimates are not yet fully refined and could still change, pending the plan's final approval. As of February 2001, the Agency's estimated one-time costs were about $1.5 million, with annual net savings of about $3.8 million thereafter.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2001
- Accession Number
- ADA389122
Entities
Organizations
- United States Government Accountability Office