Proposed Moves of Certain Agencies in the National Capital Region

The proposed relocation of the Health Resources Administration (HRA) of the Department of Health, Education, and Welfare (HEW) and certain agencies in Navy was reviewed. Officials of both the Navy and HRA believe they will increase program effectiveness and managerial efficiency by consolidating presently separated components.

HEW did not make a cost-effectiveness study of the proposed move because their regulations do not require such a study when the space is already under lease and available. HRA estimated that its nonrecurring cost to move will be $2,965,000 and its recurring cost will be $5,056,000, an increase of $167,000 annually over the cost at the present three locations. As of October 6, 1976, the funds needed for renovation had not been identified. There were practically no discrepancies on factual matters between the Navy and the employees' concerns; the differences were on matters of judgment. It cannot be determined whether the benefits will outweigh the cost and any inconvenience incurred by the move. Moves of this magnitude warrant a cost-effectiveness study before decisions are made.