Force Structure

A-76 Not Applicable to Air Force 38th Engineering Installation Wing Plan Gao ID: NSIAD-99-73 February 26, 1999

This report discusses whether the Air Force complied with relevant policy and congressional notification requirements in deciding to deactivate the 38th Engineering Installation Wing at Tinker Air Force Base in Oklahoma and reassign its work elsewhere. GAO discusses (1) the scope of the Air Force's proposed action, (2) whether it is subject to the requirements of Office of Management and Budget Circular A-76 and 10 U.S.C. 2461, and (3) whether an analysis was done to examine the cost-effectiveness of the planned action.

GAO noted that: (1) the Air Force plans to deactivate the 38th EIW, headquartered at Tinker AFB, Oklahoma, and transfer its wartime mission to the Air National Guard without increasing the Guard's authorized end-strength; (2) about 75 percent, or 1,752, of the unit's authorized positions will be eliminated, while 591 positions will be reassigned to existing or new organizations to assume responsibilities previously assigned to the 38th EIW; (3) these changes are expected to result in one-time savings of $33 million and annual recurring savings of $28 million; (4) the proposed action is a comprehensive restructuring of an active component unit, largely transferring its wartime mission to the National Guard; (5) it is not the type of action historically associated with OMB Circular A-76 and is not a conversion as envisioned under the circular; (6) accordingly, a cost comparison under that circular is not required; (7) likewise, the planned action is not a change in the performance from civilian personnel to contractor employees of the kind subject to the requirements of 10 U.S.C. 2461; (8) accordingly, the Air Force was not required to perform the cost study and provide congressional notification under that provision; and (9) at the same time, the Air Force's business case analysis supports the cost-effectiveness of the proposed action, with the reduction of a significant number of personnel.

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