Depot Maintenance

The Pentagon, citing insufficient work load, plans to transfer industrial plant equipment maintenance and special weapons storage missions from the Seneca Army Depot in Romulus, New York, to a facility in Mechanicsburg, Pennsylvania. The Defense Department (DOD) believes that the costs for maintaining and rebuilding industrial plant equipment will be lower at the Mechanicsburg site. GAO's analysis shows that DOD's cost comparison was incomplete and inaccurate and that rebuilding costs at both facilities were actually very close, although GAO cites several factors that support consolidation at the Mechanicsburg facility.

GAO found that: (1) DOD decided to transfer Seneca's industrial plant equipment maintenance and rebuild work load to the Defense Logistics Agency's (DLA) Defense Industrial Plant Equipment Center (DIPEC) facility as part of its depot consolidation effort; (2) the DOD cost comparison was incomplete and inaccurate and rebuild costs at both facilities were close; (3) the DIPEC facility had greater rebuild capability and excess plant capacity to absorb the Seneca plant's work load; (4) the need for both facilities was questionable, since DOD expected the work load for rebuilding industrial plant equipment to decline; and (5) DOD could save up to $1.9 million annually by consolidating the work load at one facility.