Proposed Consolidation of Defense Contract Administration Services Regions in Cleveland

GAO initiated a review of the cost and savings estimates for the proposed consolidation of the Defense Contract Administration Services Regions in Cleveland. Under the realignment plan, actions would be taken to consolidate the nine regions into five. The Chicago and Cleveland regional offices would be combined into the Great Lakes regional office located in Cleveland. The Defense Logistics Agency (DLA) has inititated certain other actions that significantly affect the planned consolidation. DLA is reviewing all nine regions with respect to: (1) costs and benefits associated with alternative organization structures; (2) projected increases in Department contracting; and (3) computer systems that support the regional offices. In response to a GAO inquiry, DLA stated that the review would include changes in the regions' boundaries, workloads, and organization structures. According to DLA, these changes would alter the cost and savings estimates used in the previous decision to locate the Great Lakes regional office in Cleveland. Consequently, GAO discontinued reviewing these cost and savings estimates.