NATO Enlargement

The approach NATO used in determining its estimated direct enlargement cost of $1.5 billion for commonly funded requirements is reasonable. GAO found that NATO's assessment was based on site visits, historic data, and extensive discussions with officials from invited countries. A key assumption of the NATO cost estimate is that the current low-threat environment will continue for the foreseeable future. Any changes in the threat environment could affect military requirements and costs related to the enlargement. GAO concludes that the Defense Department's (DOD) assessment of the NATO cost report was reasonable. According to DOD, the U.S. Joint Staff validated the requirements on which these costs were based as militarily sound. Moreover, DOD stressed that the NATO study was a more accurate reflection of commonly funded costs than DOD's 1997 study.

GAO noted that: (1) the approach used by NATO in determining its estimated direct enlargement cost of $1.5 billion for commonly funded requirements is reasonable; (2) GAO found that NATO's assessment was based on site visits, historic data, and extensive dialogue with invitee officials; (3) a key assumption of the NATO cost estimate is that the current low threat environment will continue for the foreseeable future; (4) any changes in the threat environment could affect enlargement-related military requirements and costs; (5) based on GAO's work at NATO and its prior analysis of enlargement estimates, GAO concludes that the Department of Defense's (DOD) assessment of the NATO cost report was reasonable; (6) according to DOD, the U.S. Joint Staff validated the requirements on which these costs were based as militarily sound; and (7) morever, DOD emphasized that the NATO study was a more accurate reflection of commonly funded costs than DOD's 1997 study.