DOD Environmental Cleanup

Although the Defense Department (DOD) does not collect information on its contractors' past and future cleanup costs of reimbursement, substantial data may be available on this subject. GAO inquiries at the Pentagon about the 15 largest contractors revealed at least partial information on most past and future cleanup costs. The data GAO obtained reveal that 10 contractors have already incurred investigation and initial cleanup costs totaling nearly $300 million. GAO also obtained at least partial projections of future cleanup costs that range as high as $1.1 billion. Four of the 15 contractors reported receiving DOD reimbursements totaling about $59 million. Future DOD payments to contractors could rise significantly after long-term cleanup efforts begin. Four contractors have filed claims with DOD already, and others may file claims in the future.

GAO found that: (1) while substantial data may be available, DOD does not collect information on past and future environmental clean-up costs; (2) 10 DOD contractors incurred initial clean-up costs totalling $300 million; (3) future estimated clean-up costs range between $900 million and $1.1 billion; (4) DOD reimbursed four contractors a total of $59 million for clean-up costs; and (5) future DOD clean-up reimbursements could increase significantly.