Defense Logistics

For the past five years, residents of Norwalk, California, have objected to the nearby Defense Fuel Support Point because of the potential for catastrophic fires, ground contamination due to fuel leaks, and economic hardship linked to real estate that has become unsalable. The Defense Department (DOD) studied the situation and, in GAO's view, used sound criteria, assumptions, and analyses to identify and assess three basic alternatives concerning the facility's future--maintaining the status quo, reducing operations, or closing the facility and developing an alternate supply route. Ultimately, DOD decided on retaining the facility and reducing the amount of fuel stored there. Besides studying the alternatives, DOD took steps to address the safety and environmental issues raised by the city. For example, it commissioned studies assessing earthquake dangers and identifying the source, extent, and types of on-site and off-site contamination, together with actions to boost safety and physical security and to clean up contamination. DOD also responded in two instances to economic hardship alleged by a property owner and a lender who wished to finance nearby real estate.

GAO found that: (1) DOD identified and assessed three alternatives, including maintaining the status quo, reducing operations, or closing the facility and developing an alternate supply route; (2) DOD decided that retaining the facility and reducing the amount of fuel stored was the preferred alternative, and did not pose an inordinate danger to residents; (3) DOD took steps to address the safety and environmental issues raised by the city; (4) DOD commissioned studies assessing earthquake dangers and identifying the source, extent, and types of on-site and off-site contamination, together with actions, planned or implemented, to enhance safety and physical security and clean up contamination; and (5) DOD responded in two instances to allegations of economic hardship by an owner and a lender who wished to finance nearby property.