Additional Cost of the All-Volunteer Force

Using the budget as a basis for examination, GAO estimated that the annual cost increase from fiscal years 1971 through 1977 attributable to the All-Volunteer Force (AVF) were about $.09 billion in 1971, $1.5 billion in 1972, $3.0 billion in 1973, $3.3 billion in 1974, $3.4 billion in 1975, $3.3 billion in 1976, $.8 billion in 1976 transition quarter, and at least $3.1 billion in 1977. Costs were categorized for premilitary service, military service, and postmilitary service and costs attributable to AVF identified in these areas. The Department of Defense (DOD) reservations about these findings were that: they do not answer the question of how much money would be saved if the Nation returned to the draft, estimates based on congressional testimony focuses attention on costs and not on savings, the budgetary approach does not consider future costs and savings, and certain sections associated with the career force should not be attributed to AVF. GAO considered DOD's estimate of a savings of no more than $500 million per year from a return to the draft as conservative and questioned the assumptions used to reach this estimate. The testimony on which GAO based its conclusions was given by DOD officials over a period of time and provided sufficient evidence. GAO recognized the limitations of the budgetary approach but felt that it was a reasonable way to assess costs and that future financial implications were conjectural. GAO disagreed with DOD's reasoning for not attributing to AVF certain costs in support of the career force.