Relocation of the Western Executive Seminar Center

GAO discussed the Office of Personnel Management's (OPM) proposal to relocate the Western Executive Seminar Center from Denver to Grand Junction, Colorado. A planned relocation in summer 1984 was deferred based on previous GAO recommendations. Circumstances have changed significantly since the prior GAO analysis, and currently available data suggest a stronger economic case for relocation to Grand Junction. While substantial relocation costs exceed Grand Junction's cost advantage by $154,482 in the first year, the lower costs of leased space for the Center and especially lower costs for food and lodging in Grand Junction offset higher airfares for participants to Grand Junction in the second and subsequent years. However, these calculations are qualified by the volatility of two variables: food and lodging expenses and airfare. Also, the OPM proposal to relocate the center by July 1, 1985, involves additional rental costs that could be avoided if the relocation were delayed until March 31, 1986. GAO continues to believe that factors other than cost should be considered before a final decision is made, including: (1) the track record and proven relationship of the Center with the present contractor in Denver; (2) the value of the Center's relationship with the University of Colorado's Graduate School of Public Affairs; (3) the importance in the educational program of field trips to expose federal managers to a variety of management situations; and (4) the merits of co-location with other federal installations in a federal regional center like Denver.