United States General Accounting Office

GAO Briefing Report to the Honorable

Mary L. Landrieu, U.S. Senate

July 1998 MILITARY BASES

Transfer of the 458th

Operations Group to

McGuire Air Force

Base

GAO/NSIAD-98-207BR

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-279510 

July 28, 1998

The Honorable Mary L. Landrieu

United States Senate

Dear Senator Landrieu:

This report responds to your request for information regarding the transfer

of the 458th Operations Group from Barksdale Air Force Base (AFB),

Louisiana, to McGuire AFB, New Jersey. Specifically, this report discusses

(1) factors that prompted the transfer of this unit and decisions of the 1993

Base Realignment and Closure (BRAC) Commission that affected Barksdale

AFB; (2) the estimated costs, savings, and operational benefits of the BRAC

decisions affecting Barksdale; and (3) general indicators of economic

conditions in the Barksdale (Shreveport-Bossier City, Louisiana) area.

We briefed your staff on the results of our work on May 6, 1998. This

report summarizes and updates the information presented at that briefing.

Background Barksdale AFB was established in 1933 and has served primarily as a

Strategic Air Command base and home for bomber aircraft. In 1958,

Barksdale received its first B-52 Stratofortresses, and in 1981, KC-10

Extender aerial refuelers were assigned to Barksdale to support B-52

operations. By 1993, the 458th Operations Group at Barksdale had 

19 assigned KC-10s.

In the early 1990s, the Air Force restructured its forces to prepare for the

post-Cold War environment. As part of this restructuring, the Air Force

realigned the Strategic Air Command, the Tactical Air Command, and the

Military Airlift Command into the Air Combat Command and the Air

Mobility Command.

This restructuring, as well as BRAC 1993 decisions,1

 resulted in the

relocation of KC-10 refuelers to the East and West coasts to better support

1

The Congress authorized four rounds of BRACs between 1988 and 1995; the last three rounds were

completed under special legislative authority enacted in 1990 (P.L. 101-510). Under this legislation, an

independent BRAC Commission reviewed recommendations for closure or realignment submitted by

the Secretary of Defense. The Commission either approved or modified the Secretary’s

recommendations and ultimately forwarded its own recommendations to the President, who in each

instance forwarded the Commission’s recommendations to the Congress. Each time, the Congress had

45 days in which to enact a joint resolution should it desire to disapprove the recommendations—in

each instance the lack of action by the Congress resulted in the recommendations becoming effective.

Page 1 GAO/NSIAD-98-207BR Military Bases
B-279510 

air mobility requirements. In addition, B-52s from three bases to be closed

or realigned were relocated to Barksdale.

Today, as part of the Air Combat Command, 57 B-52 aircraft are assigned

to Barksdale. The 8th Air Force, the 2nd Bomb Wing, various support and

operations groups, and the only Air Force B-52 Reserve Wing are also

headquartered at Barksdale.

Results in Brief The movement of the 458th Operations Group and its 19 KC-10s from

Barksdale to McGuire was a result of restructuring by the Air Force in

response to the end of the Cold War and decisions by the 1993 Base

Realignment and Closure Commission. At the end of the Cold War, the Air

Force’s mission changed to include contingency missions such as

peacekeeping operations and the ability to respond simultaneously to two

major regional conflicts. To better support new requirements, the Air

Force created two new commands: the Air Combat Command and the Air

Mobility Command. The Air Combat Command was assigned all B-52s. All

tanker and cargo aircraft, including KC-10s, were assigned to the Air

Mobility Command.

To establish a “global reach” capability, the Air Force and the Department

of Defense recommended to the 1993 Commission that a mobility wing be

established on the East Coast at Plattsburgh Air Force Base, New York,

and on the West Coast at Travis Air Force Base, California. However, the

Commission recommended that Plattsburgh be closed and that the East

Coast mobility wing be located at McGuire. To support the East Coast

mobility wing, the 458th Operations Group and its 19 KC-10 aircraft were

reassigned from Barksdale to McGuire.2

 The Commission also

recommended closing Castle Air Force Base, California, and K.I. Sawyer

Air Force Base, Michigan, and recommended realigning Griffiss Air Force

Base, New York. As a result of these recommendations, 21 B-52 aircraft

and the B-52 school were relocated from these bases to Barksdale.

The Commission estimated its recommended closures and realignments

would result in net annual recurring savings of $211 million once

implementation costs to close and realign these bases were offset. As of

March 31, 1998, the Air Force had obligated $569 million for one-time

implementation costs to close and realign these four bases. In addition, Air

Force officials stated that basing the KC-10s on the East Coast has resulted

in numerous operational benefits, such as providing quick initial crisis

2

The assets of the 458th were assigned to the 305th Operations Group at McGuire AFB.

Page 2 GAO/NSIAD-98-207BR Military Bases
B-279510 

response to locations around the world, making more efficient use of

KC-10s to transport both personnel and equipment, and eliminating

approximately 1,400 miles previously required to support operations in

Europe.

While the movement of the KC-10s from Barksdale caused concern about

the economic impact on the community, indications are that Barksdale

continues to provide economic benefits to the Shreveport-Bossier City

area. Currently, Barksdale contributes approximately $447.7 million to the

local community. In addition, from 1994 to 1996 total personal income

increased 7.6 percent, per capita income increased 7.2 percent, and

unemployment deceased by 1 percent.

Agency Comments We requested comments on a draft of this product from the Secretary of

Defense. On July 2, 1998, the Office of the Deputy Assistant Secretary of

the Air Force (Installations) responded orally and concurred with the

contents of the report.

Scope and

Methodology

To develop information about the factors that led to the transfer of the

458th Operations Group from Barksdale to McGuire and the estimated

costs, savings, and operational benefits of the BRAC decisions, we

interviewed officials from various Air Force BRAC offices and both

Barksdale and McGuire. Additionally, we reviewed documents obtained

from Air Force officials at Barksdale, McGuire, the Air Mobility Command,

and Air Force BRAC offices. We also reviewed documents related to the

1993 BRAC Commission’s decisions and historical records related to the Air

Force’s reorganization.

The Air Force was not able to provide estimated cost information

specifically related to the movement of the 19 KC-10s from Barksdale due

to (1) changes in the Air Force’s accounting codes during the move,

(2) unavailability of records due to the age of the BRAC decision, and

(3) the BRAC Commission not estimating the costs of moving the KC-10s

from Barksdale to McGuire. We obtained estimated budget information for

construction projects necessary to accommodate the transfer of B-52s to

Barksdale and the transfer of KC-10s to McGuire. We did not

independently verify the cost and savings data provided by the Air Force

but did obtain documentation relating to and supporting reported figures.

Page 3 GAO/NSIAD-98-207BR Military Bases
B-279510 

To obtain information regarding current economic conditions in the

Shreveport-Bossier City, Louisiana, area, we obtained the most current

total personal income and per capita income data from the Bureau of

Labor Statistics and the Bureau of Economic Analysis.

We conducted our review between February and June 1998 in accordance

with generally accepted government auditing standards.

We are sending copies of this report to the Chairmen and Ranking

Minority Members of the Senate Committee on Armed Services and to the

House Committee on National Security; the Secretaries of Defense and the

Air Force; and the Director, Office of Management and Budget. We will

also make copies available to others upon request.

If you have any questions about this report, please contact me at

(202) 512-8412. Major contributors to this report were Barry W. Holman,

Associate Director; Ronald L. Berteotti, Assistant Director; Patricia J.

Nichol, Evaluator-in-Charge; and Oliver G. Harter, Senior Evaluator.

Sincerely yours,

David R. Warren, Director

Defense Management Issues

Page 4 GAO/NSIAD-98-207BR Military Bases
Page 5 GAO/NSIAD-98-207BR Military Bases
Contents

Letter 1

Briefing Section I 

Air Force

Restructuring

8

Major Restructuring of U.S. Air Force 1991-93 8

Briefing Section II 

BRAC 1993 Decisions

10

East and West Coast Mobility Wings Proposed to BRAC 1993

Commission

10

Mobility Wings Recommended by BRAC 1993 Commission 12

BRAC 1993 Decisions Affecting Barksdale Air Force Base 14

Briefing Section III 

Costs and Savings of

BRAC 1993 Decisions

16

Reported Obligations Associated With BRAC Decisions Affecting

Barksdale

16

Estimated Savings Associated With BRAC Decisions Affecting

Barksdale

18

Estimated Construction Costs Associated With BRAC 1993

Decisions

20

Briefing Section IV 

Operational Benefits

of Relocating KC-10s

22

Operational Benefits of Reassigning KC-10s to McGuire Air Force

Base

22

Briefing Section V 

Economic Indicators

24

Fiscal Year 1997 Economic Impact of Barksdale AFB on Local

Community

24

Abbreviations

AFB Air Force Base

BRAC Base Realignment and Closure

Page 6 GAO/NSIAD-98-207BR Military Bases
Page 7 GAO/NSIAD-98-207BR Military Bases
Briefing Section I 

Air Force Restructuring

GAO Major Restructuring of Air Force 

1991-93

Cold War ends and Air Force changes 

mission to respond to two major regional 

conflicts and support peacekeeping 

operations.

Air Force realigns three commands into 

two. 

Tanker and cargo aircraft are assigned to 

Air Mobility Command; combat aircraft 

assigned to Air Combat Command.

Page 8 GAO/NSIAD-98-207BR Military Bases
Briefing Section I 

Air Force Restructuring

The end of the Cold War resulted in changes to mission requirements and

ultimately in a major reorganization of the Air Force. In the early 1990s,

the Air Force reevaluated its basing strategies and disbanded the old Cold

War major commands.

The Air Force’s new mission requires the ability to respond to two nearly

simultaneous major regional conflicts and other contingency operations

such as peacekeeping. To support this new mission, the Strategic Air

Command, the Tactical Air Command, and the Military Airlift Command

were replaced by two new commands—the Air Combat Command and the

Air Mobility Command.

The Air Mobility Command, headquartered at Scott Air Force Base,

Illinois, has responsibility for tanker and cargo aircraft, and the Air

Combat Command, headquartered at Langley Air Force Base, Virginia, has

responsibility for combat aircraft.

Page 9 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

GAO East and West Coast Mobility Wings 

Proposed to BRAC 1993 Commission

Travis AFB

Plattsburgh AFB

Page 10 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

To guarantee a “global reach” capability, the Air Force and the Department

of Defense recommended to the 1993 Base Realignment and Closure

(BRAC) Commission that an East Coast mobility wing be established at

Plattsburgh Air Force Base (AFB), New York, and a West Coast mobility

wing be established at Travis AFB, California. These wings were to

comprise KC-10s, KC-135s, C-141s and other aircraft used for support

operations. The Air Force evaluated McGuire AFB, New Jersey, and Griffiss

and Plattsburgh AFBs, New York, as possible locations for the East Coast

mobility wing. The Air Force ranked Plattsburgh best in capability to

support the air mobility wing due primarily to its location and its ability to

load aircraft with supplies or personnel.

Page 11 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

GAO Mobility Wings Recommended by 

BRAC 1993 Commission

Barksdale AFB

(19 KC-10s)

Travis AFB

McGuire AFB

Page 12 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

The BRAC 1993 Commission found that the Department of Defense did not

adequately assess the military value of McGuire AFB and recommended

that the base be retained as an active installation. The Commission

recommended that McGuire be realigned to become the Air Mobility

Command eastern wing site, with the addition of KC-10 tankers to

supplement its C-141B and Air National Guard KC-135s. The Commission

also recommended that the 438th and 514th Airlift Wings remain at

McGuire and that the 458th Operations Group and its 19 KC-10s move from

Barksdale AFB, Louisiana, to McGuire. The Commission added Plattsburgh

AFB, New York, to the list of installations to be considered for closure or

realignment and ultimately recommended its closure.

Page 13 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

GAO BRAC 1993 Decisions Affecting 

Barksdale Air Force Base 

Griffiss (Realigned)

K.I. Sawyer (Closed)

13 B-52s

Castle (1991 BRAC closed Castle; 

directed B-52 school and aircraft to 

Fairchild. 1993 BRAC redirected 

B-52s and school to Barksdale.)

8 B-52s & school

Barksdale AFB, La.

East Coast Mobility Wing

McGuire AFB, N.J.

19 KC-10s

Page 14 GAO/NSIAD-98-207BR Military Bases
Briefing Section II 

BRAC 1993 Decisions

The BRAC 1993 Commission made other recommendations that directly

affected Barksdale. The Commission recommended that K.I. Sawyer AFB,

Michigan, be closed and Griffiss be realigned and that 13 B-52s from these

two bases be transferred to Barksdale. The Commission also revised a

1991 BRAC Commission recommendation to close Castle AFB, California,

and transfer the B-52 combat crew training mission to Fairchild AFB,

Washington. As a result, eight B-52 aircraft and the B-52 training unit were

transferred from Castle to Barksdale. Currently, 57 B-52 aircraft are

assigned to Barksdale.

Page 15 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

GAO Reported Obligations Associated With 

BRAC Decisions Affecting Barksdale

One-time implementation costs to close 

or realign bases as of March 31, 1998

(dollars in millions)

Castle AFB, Cal. - $168.9

Griffiss AFB, N.Y. - $123.7

K.I. Sawyer AFB, Mich. - $ 220.9

Plattsburgh AFB, N.Y. - $ 55.5

Page 16 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

As of March 31, 1998, the Air Force had reported obligations1 of

approximately $569 million to close or realign the four bases. These

estimated one-time costs are associated with operations of the Air Force

Base Conversion Agency Operating Location and include utilities,

caretaker costs, and civilian pay; environmental restoration of the affected

bases, to include groundwater monitoring plans; underground storage tank

removals; and closure of oil/water separator sites.

1

The Department of Defense’s financial regulations define obligations as amounts of orders placed,

contracts awarded, services received, and similar transactions during an accounting period that will

require payments. Obligations may not reflect actual final costs.

Page 17 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

GAO Estimated Savings Associated With 

BRAC Decisions Affecting Barksdale 

Estimated net annual recurring savings

(dollars in millions)

Castle AFB, Cal. - $ 52.7

Griffiss AFB, N.Y. - $ 39.2

K.I. Sawyer AFB, Mich. - $ 62.4

Plattsburgh AFB, N.Y. - $ 56.6

Page 18 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

In making its recommendations, the BRAC 1993 Commission estimated net

annual recurring savings for the four bases to be $211 million. These

savings are expected to begin to accrue once implementation costs are

offset, typically within the 6-year period provided by law for implementing

BRAC decisions. The estimated savings were to result from reductions in

Air Force personnel; reductions to base operating support costs; and,

where applicable, proceeds from sale of real property at closed bases. The

BRAC 1993 Commission’s report did not identify specific savings for the

McGuire realignment. However, this realignment facilitated the closing or

realignment of other locations from which savings were expected.

Page 19 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

GAO Estimated Construction Costs

Associated With BRAC 1993 Decisions

 Accommodate KC-10s at McGuire AFB

$116.9 million for 20 projects

$15.9 million for one family housing 

project

Accommodate B-52s at Barksdale AFB

 $15.4 million for five projects

Page 20 GAO/NSIAD-98-207BR Military Bases
Briefing Section III 

Costs and Savings of BRAC 1993 Decisions

We were not able to identify all of the implementation costs specific to

Barksdale and McGuire due to changes in Air Force accounting codes and

the unavailability of records because of the age of the BRAC decision.

However, the Air Force did identify military construction projects

specifically associated with the transfer of the KC-10s to McGuire and the

transfer of B-52s to Barksdale. These costs are included in the one-time

closure or realignment costs.

To accommodate the KC-10s transferred from Barksdale, the Air Force

identified 20 required military constructions projects at McGuire with an

estimated cost of $116.9 million. These projects included a three-bay

hangar, ramp upgrade, maintenance unit facility, road repair, and base

supply facility. As of April 1998, 14 projects had been completed and

contracts had been awarded for the remaining projects. In addition, family

housing under construction at McGuire is estimated to cost $15.9 million.

To accommodate the B-52s at Barksdale, the Air Force needed five

military construction projects estimated to cost $15.4 million. These

projects included B-52 simulator facilities, student officers’ quarters, and

an academic facility. According to a Barksdale official, all of these BRAC

1993 projects have been completed.

Page 21 GAO/NSIAD-98-207BR Military Bases
Briefing Section IV 

Operational Benefits of Relocating KC-10s

GAO Operational Benefits of Reassigning 

KC-10s to McGuire Air Force Base

Ability to provide quick initial crisis 

response to locations around the world.

Better use of KC-10s for refueling and 

transport of equipment and personnel.

Elimination of 1,400 miles previously 

required to support aircraft headed to 

Europe by the northern route.

Page 22 GAO/NSIAD-98-207BR Military Bases
Briefing Section IV 

Operational Benefits of Relocating KC-10s

According to the Vice Commander at McGuire, establishing an East Coast

mobility wing has resulted in numerous operational benefits such as the

ability to (1) provide quick initial crisis response to locations around the

world by combining airlift and refueling capability at a single location and

(2) use the KC-10 more efficiently to transport both personnel and

equipment. In addition, relocating the 19 KC-10s from Barksdale

eliminated approximately 1,400 miles that previously had to be flown to

support aircraft headed to Europe by the northern route.

Page 23 GAO/NSIAD-98-207BR Military Bases
Briefing Section V 

Economic Indicators

GAO Fiscal Year 1997 Economic Impact of 

Barksdale AFB on Local Community

Total economic impact - $447.7 million

Base payroll 

(8,795 personnel) $269.3 million

Expenditures 

(construction, services, 

 materials, equipment,

 and supplies) $112.3 million 

Indirect jobs created

 (2,958) $ 66.1 million

Page 24 GAO/NSIAD-98-207BR Military Bases
Briefing Section V 

Economic Indicators

Barksdale has continued to provide economic benefits to the

Shreveport-Bossier City area. In fiscal year 1997, Barksdale’s Economic

Impact Analysis report showed that the base contributed approximately

$447.7 million to the local economy in the form of payroll, expenditures,

and jobs created from construction projects.

Other indicators of the economic well-being of the area include the

unemployment rate, total personal income, and per capita income.

According to data provided by the Bureau of Labor Statistics and the

Bureau of Economic Analysis, (1) the unemployment rate declined from

8.2 percent in 1994 to 7.2 percent in 1996; (2) the Shreveport-Bossier City

area had a total personal income of $7.865 million in 1996, an increase of

7.6 percent from 1994; and (3) the area’s per capita personal income was

$20,756 in 1996, an increase of 7.2 percent from 1994.1

 The data also

showed that the military is the second-largest income provider by people

employed in the Shreveport-Bossier City metropolitan area.

According to the 2nd Bomb Wing Commander at Barksdale, the economic

impact from the transfer of the KC-10s to McGuire was offset by the

transfer of additional B-52s to Barksdale.

(709326)

1

Reported in current year dollars.

Page 25 GAO/NSIAD-98-207BR Military Bases
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