Questionable Use of Military Minor Construction and Host Nation Funding in Transfer of 21st Replacement Battalion by U.S. Army Europe

Gao ID: ID-81-23 January 19, 1981

GAO was requested to review allied cost sharing for U.S. military forces stationed overseas. GAO studied a related issue involving two minor military construction account (MMCA) projects. The projects were constructed in connection with a complex for an Army battalion, in which most of the funding came from special Federal Republic of Germany (FRG) accounts.

GAO believes that the Army avoided the statutory MMCA dollar limitation by classifying the construction of two adjacent and similar buildings as two separate MMCA projects. Although the Army could argue that their action was authorized under applicable Army regulations, GAO believes that the classification of these buildings as two separate projects defied the spirit and intent of the statutory funding limitation. Also, the Army constructed an addition to one of these buildings using funds obtained from FRG. GAO believes that the Army failed to obtain satisfactory compensation from FRG for return of facilities in connection with the move. This situation suggests that future, similar incidents are possible, especially if congressional calls for increased allied cost sharing result in more cooperative projects using host nation funds.


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