Review of the Merger of Navy Sea Systems Command Automatic Data Support Centers

Since 1976, the Department of the Navy has been considering moving the Computer Application Support and Development Office, located at the Portsmouth Naval Shipyard, New Hampshire, and merging it with the Central Naval Ordnance Management Information Systems Office, located at Indian Head, Maryland. A 1977 Navy report showed that consolidation of these activities could eliminate 37 positions at an estimated annual savings of $905,600. The Navy then studied the alternatives of locating the consolidated activity at either Portsmouth or Indian Head to determine which of the two sites would result in the least cost.

In 1978, the Navy concluded that it would incur less investment costs by locating at Indian Head. GAO reviewed the cost elements supporting that decision and agreed that it would be economically more favorable to locate at Indian Head. The Navy estimated that the move to Indian Head would be $615,000 less than at Portsmouth, whereas GAO estimated the amount would be $678,000 less. The Navy also estimated that the annual operating costs at Indian Head would be $38,000 greater than at Portsmouth; however, GAO estimated the amount as only $2,000 greater. Since 1976, the Navy has reduced the authorized personnel for these two activities by 81 positions, a level at which it is no longer possible to operate effectively in two locations. As requested, GAO provided information pertaining to the on-board strength at specific dates for both activities, as well as actions expected to be taken by personnel at Portsmouth.