Deliberative Document -For Discussion Pmposes Only -Do Not Release Under FOIA dcn: 9268 DEPARTMENT OF THE AIR FORCE WASHINGTON OFFICE OF THE ASSISTANT SECRETARY DC FEB 042004 MEMORANDUM FOR DEPUTY UNDER SECRETARYOF DEFENSE(INSTALLATIONS AND ENVIRONMENT) FROM SAF/IE 1665Air Force Pentagon WashingtonDC 20330-1665 SUBJECT: Draft FederalRegisterNotice Regardingthe Final BRAC 2005 SelectionCriteria (Your Memo, 30 Jan04) On behalf of the Air ForceInfrastructureExecutiveCouncilmembers,andthe Air Force Vice Chief of Staff, I concurwith the subjectFederalRegisterNotice, r NELSONF. AssistantSecretary (Installations,Environment& Logistics) cc: SecAF CSAF AF/CV DeliberativeDocument-For DiscussionPurposesOnly -Do Not ReleaseUnderFOIA . Deliberative Document -For Discussion Purposes Only -Do Not Release Under FOIA dcn: 9268 DEPUTY SECRETARY OF DEFENSE 1010 DEFENSE PENTAGON WASHINGTON, DC 20301-1010 ACTION MEMO TO: SECRETARYOF DEFENSE FROM: Honorable Paul Wolfowitz, Deputy Secretaryof Defense SUBJECT: Base Realignment and Closure (BRAC) Pinal Selection Criteria The BRAC statuterequires the use of public selectioncriteria in the analytical process. Selection criteria, along with the force structure plan, are the basis on which the Commissionjudges DoD recommendations. DoD published draft criteria in the Federal Register on December23,2003, for public comment (TAB B). The Departmentreceived in excessof 200 letters from the public and membersof Congress. Written commentsreceived from membersof Congressin advance of publication were also considered in this process. The draft criteria were designedto accommodatethe diversity of missions and functions within the Department. We are not proposing any changesto them because they either already addressthe comments or are broad enoughto accommodate them through appropriate implementing guidance. The statuterequires the Departmentto submit its criteria to the congressionaldefense conunittees and publish them in the Federal Register (with a comment analysis), by February 16, 2004, or BRAC ends. Since that date is a holiday, we will publish the final criteria by the previous Thursday, February 12. The document must be at the Federal Register no later than 2 p.m. on Tuesday, February 10, to meet that schedule. Concurrent with forwarding this packageto you, we have provided drafts of the final criteria and Federal Register notice to the Office of Managementand Budget. E.O. 12866requires OMB review of significant Federal Register notices prior to publication. We do not anticipate their input will alter our recommendations. I recommend you approve the final criteria, the Federal Register notice publishing thesecriteria and analysis of comments,and sign the letters to the congressional defensecommittees transmitting the final criteria (TAB A). COORD: IEC MembersandGC at TAB D RECOMMENDATION: Attachments:As stated Approve Disapprove Other dcn: 9268 Draft Deliberative Document-For Discussion Purposes Only -Do Not Release Under FOIA THE UNDER SECRETARY OF DEFENSE 3010 DEFENSE PENTAGON WASHINGTON, DC 20301.3010 FEB 2 2004 ACQUISITION, TECHNOLOGY AND LOGISTICS MEMORANDUM FOR INFRASTRUCTURE EXECUTIVE COUNCIL (IEC) MEMBERS GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE THROUGH: INFRASTRUCTURE STEERING GROUP (ISG) MEMBERS SUBJECT: Final Base Realignment and Closure SelectionCriteria The Base Realignment and Closure (BRAC) statuterequires the Department to develop selectioncriteria to use in its analytical process. The selection criteria are important becausethey, along with the force structure plan, are the basis on which the Commissionjudges the Department's recommendations. The Department published draft selectioncriteria in the Federal Register on December23, 2003, with public comments due by January 28, 2004 (TAB B). The Department subsequentlyissued an extension of the comment period to January 30thin conjunction with a clarification for when the comments must be received (TAB C). The Department must now submit the final criteria to the congressional defense committees, and publish them in the Federal Register,with its analysis of the public comments, by February 16,2004. Since that date falls on a holiday, we will publish the final criteria by the previous Thursday, February 12,2004. To meet that publication schedule,the document must be at the Federal Registerno later than 2 p.m. on Tuesday, February 10,2004. Unless the criteria are disapproved by an Act of Congress, they become final on March 15, 2004. The OSD BRAC staff, with assistancefrom your BRAC principal, reviewed the public and congressionalcomments received to determine if those comments raise issues that may require changesto the draft criteria. Their assessmentis that the concerns expressedin the comments are best addressedthrough policy guidance. Therefore, I propose that we recommend to the Secretarythat he publish the final criteria unchanged. At its January30, 2004, meeting the ISG decided that the compressedschedule for publishing the final selection criteria compels a concurrentISG and IEC coordination process. The package at TAB A contains the draft Federal Register notice (TAB 1), the action memorandumto the Secretaryof Defense(TAB 2), and a letter transmitting the Federal Register notice to the congressionaldefensecommittees (TAB 3) for your review and coordination. The Federal Register notice includes an analysis of commentsreceived dcn: 9268 Draft Deliberative Document-For Discussion Purposes Only -Do Not Release Undcr FOIA and an explanation of why we did not make changesto the criteria if they were suggested. I believe thesecriteria comply with all statutoryrequirements and are broad enough to support the Department's BRAC analysis. Pleaseprovide your coordination and any commentsto the OSD BRAC Office by noon on February 5, 2004. If we do not receive your coordination by this time, we will assumeyour concurrence. J?d-[}d~ Michael W. Wynne Acting USD (Acquisition, Technology & Logistics) Chainnan, Infrastructure Steering Group Attachments: As Stated Draft Deliberative Document-For DiscussionPurposesOnly-Do COORDINATION DRAFT dcn: 9268 Not ReleaseUnder FOIA Page1 of10 DEPARTMENT OF DEFENSE Office of the Secretary Departmentof Defense SelectionCriteria for Closing and Realigning Military Installations Inside the United States. AGENCY: Departmentof Defense(DoD). ACTION: Final SelectionCriteria. SUMMARY: The Secretaryof Defense,in accordancewith Section2913(a) of the DefenseBase Closureand RealignmentAct of 1990,Public Law 101-510,as amended,10 U.S.C. 2687 note, is required to publish the final selectioncriteria to be used by the Departmentof Defense in making recommendationsfor the closure or realignment of military installations inside the United States. EFFECTIVE DATE: February 12,2004. FOR FURTHER INFORMATION CONTACT: Mr. Mike McAndrew, Base Realignmentand ClosureOffice, ODUSD(I&E), (703) 614-5356. SUPPLEMENTARYINFORMATION: A. Final SelectionCriteria The final criteria to be used by the Departmentof Defenseto make recommendationsfor the closure or realignmentof military installations inside the United Statesunder the DefenseBase Closureand RealignmentAct of 1990,Public Law 101-510,as amended,10 U.S.C. 2687 note, are asfollows: In selectingmilitary installations for closure or realignment,the Departmentof Defense, giving priority considerationto military value (the first four criteria below), will consider: Military Value The~urrent and future mission capabilities and the impact on operationalreadinessof the Departmentof Defense'stotal force, including impact on joint warfighting, training, and readiness. 2. The availability and condition of land, facilities and associatedairspace(including training areassuitable for maneuverby ground, naval, or air forces throughout a diversity of climate and terrain areasand stagingareasfor the use of the Armed Forcesin homelanddefense missions) at both existing and potential receiving locations. 3. The ability to accommodatecontingency,mobilization, and future total force requirementsat both existing and potential receiving locationsto supportoperationsand training. 4. The cost of operationsand the manpowerimplications. Other Considerations dcn: 9268 Draft DeliberativeDocument-For DiscussionPurposes Only-Do Not ReleaseUnderFOIA COORDINATIONDRAFT Page2 of 10 5. The extent and timing of potential costsand savings,including the number of years, beginning with the date of completion of the closure or realignment, for the savingsto exceed the costs. 6. The economic impact on existing communities in the vicinity of military installations. 7. The ability of both the existing and potential receiving communities'infrastructureto support forces, missions,and personnel. 8. The environmentalimpact, including the impact of costsrelated to potential environmental restoration,wastemanagement,and environmentalcomplianceactivities. B. Analysis of Public Comments The Departmentof Defense (DoD) receiveda variety of commentsfrom the public, membersof Congress,and other electedofficials in responseto the proposedDoD selectioncriteria for closing and realigning military installations inside the United States. The Departmentalso receiveda number of letters from membersof CongressregardingBRAC selectioncriteria before publication of the draft criteria for comment. The Departmenthastreatedthose letters as commentson the draft criteria and included the points raised therein in our assessmentof public comments. The commentscanbe groupedinto three categories:general,military value, and other considerations. The following is an analysis of thesecomments. (1) General Comments: (a) Numerouscommentorsexpressedsupport for the draft criteria without suggesting changesand usedthe opportunity to provide information on their particular installations. DoD understandsand greatly appreciatesthe high value that communitiesplace on the installations in their areaand the relationships that have emergedbetweenthe Departmentand local communities. Both the BRAC legislation and DoD's implementationof it ensurethat all installations will be treated equally in the baserealignmentand closureprocess. (b) Severalcomrnentorsgave various reasonswhy a particular installation, type of installation, or installations designatedby Congressas unique assetsor strategicports, should be eliminated from any closure or realignmentevaluation. Public Law I 01-510 directs DoD to evaluateall installations equally. The Departmenthas issuedguidanceto all DoD Components instructing them to treat all installations equally. (c) Somecornmentorsindicated the selectioncriteria should reflect the statutoryrequirement. of section2464 of title 10, United StatesCode,to maintain a core logistics capability, and the statutory limitation of Section2466 that the Departmentspendno more than 50% of its depotlevel maintenanceand repair funds to contract for the performanceof suchworkload. The Departmentbelieves, consistentwith the developmentand application of the criteria used in all previous rounds, that it is inappropriateto include any statutoryconstraintsin the selection I dcn: 9268 Draft DeliberativeDocument-For Discussion Purposes Only~Do Not ReleaseUnderFOIA COORDINATIONDRAFT Page3 ofl0 criteria becausethey are too varied and numerousand could preclude evaluationof all installations equally. However, the absenceof theserequirementsin the text of the criteria should not be construedas an indication that the Departmentwill ignore these or any other statutoryrequirementsor limitations in making its final recommendations. (d) The Departmentdid not receive any requestsfrom local governmentsthat a particular installation be closed or realigned pursuantto section2914 (b)(2) of Public Law 101-510,which statesthat the Secretaryshall considerany notice received from a local governmentin the vicinity of a military installation that the local governmentwould approve of the closure or realignment of the installation. However, a few private citizens askedthat a particular installation be closed or that operationsbe restrictedto limit noise or other community impacts. ( e) A few commentorsexpressedconcernover the broad nature of the criteria and requested greaterdetail, including in somecasesrequestsfor defmitions, specificity regarding select functions, and explanationsof when a closureas opposedto a realignmentwas appropriate. While the Departmentappreciatesa desire for detail, the inherent mission diversity of the Military Departmentsand DefenseAgenciesmakes it impossible for DoD to specify detailed criteria that could be applied to all installations and functions within the Department. Broad criteria allow flexibility of applicationacrossa wide range of functions within the Department. (f) A few commentorsrecommendedassigningspecific weights to individual criteria and applying those criteria uniformly acrossthe Department. It would be impossible for DoD to specify weights for each criterion that could be applied uniformly to all installations and functions becauseof the inherent mission diversity within the Department. Other than the requirementto give the military value criteria priority consideration,the numbering reflected in the listing of the criteria are not intendedto assignan order of precedenceto an individual criterion. (g) One commentorsuggestedthat section2687 of title 10, United StatesCode,requires the Departmentto exclude military installations with lessthan 300 authorized civilian positions from considerationfor closure or realignmentunderBRAC. While section 2687 allows the Departmentto close or realign suchinstallations outsidethe BRAC process,it does not preclude their considerationwithin BRAC. In order for the Departmentto reconfigure its current infrastructure into one in which operationalcapacitymaximizes both warfighting capability and efficiency, it must undertakean analysisof the totality of its infrastructure, not just those with 300 or more authorized civilian positions. (h) Somecommentorswere concernedthat BRAC would be used as a "back door" method of privatizing civilian positions. DoD' s civil serviceemployeesare an integral part of successful accomplishmentof defensemissions. Section2904 specifically limits the ability of the Secretary of Defenseto carry out a privatization in place of a military installation recommendedfor closure or realignmentto situationswhere that option is specified in the recommendationsof the Commissionand determinedby the Commissionto be the most cost-effectivemethod of implementation of the recommendation. Therefore,if any closure or realignment recommendationincludesprivatization, it will be clearly statedin the recommendation. , ,. \ . )Ii dcn: 9268 Draft Deliberative Document-For Discussion PurposesOnly-Do COORDINATION DRAFT Not ReleaseUnder FOIA Page4 of 10 (i) One commentorsuggestedthat the Departmentneededto conducta comprehensivestudy of U.S. military installations abroadand assesswhetherexisting U.S. basestructuresand locations meetthe needsof currentand future missions. The BRAC statuteappliesto military installations inside the United States,the District of Columbia, the Commonwealthof Puerto Rico, Guam, the Virgin Islands, American Samoa,and any other commonwealth,territory, or possessionof the United States. As a parallel action, the Secretaryof Defensehas already undertakena comprehensivestudy of global basing and presence-the Integrated Global Presenceand Basing Strategy(IGPBS). BRAC will accommodateany decisions from that study that relocateforces to the U.S. DoD will incorporateour global basing strategyinto a comprehensiveBRAC analysis,therebyensuring that any overseasredeploymentdecisions inform our recommendationsto the BRAC Commission. (j) A few commentorscautionedthe Departmentagainstusing the authority provided by Section2914(c) to close and retain installations in inactive statusbecauseof the negative effect such action might have on the relevant local community. The Departmentrecognizesthat job creationgained through the economicreuseof facilities is critically important to mitigate the negative impact of BRAC recommendations.As such,the Departmentwill exercisethe utmost caution and considerationwhen exercisingits authority to retain installations in an inactive status. It should be noted that the Departmenthas always had this authority, even though its appearancein the authorizing legislation for the 2005 round would indicate it is a new authority As such,the Department'sactionsin the four previous baseclosure rounds demonstratethat it will be exercisedjudiciously. (k) A few commentorsaskedthe Departmentto give priority to relocating activities within the samestate or local community. The Departmentrecognizesthat the economic impact of BRAC reductionscan be lessenedby moving functions to geographicallyproximate locations. However, as specified in the BRAC legislation, military value must be the primary considerationwhen making thesedecisions. Specifically, those factors that are set out in criteria one through four are the most important considerationswhen selectingreceiving locations. (2) Military Value Comments: (a) A majority of commentsreceived dealt with the military value criteria. In the aggregate, military value refers to the collection of attributes that determinehow well an installation supportsforce structure,functions, and or missions. (b) One commentorwas concernedthat the Departmentwould lose sight of the value of service-uniquefunctions when applying criteria that include referenceto jointness. The Departmentrecognizesthe distinct military value provided by both service-uniquefunctions and those functions that are performed by more than one service. Accordingly, the Secretary establisheda processwherein the Military Departmentsareresponsiblefor analyzing their service-uniquefunctions, while Joint Cross-ServiceGroups,which include representativesfrom eachof the military services,analyzethe commonbusiness-orientedsupportfunctions. (c) A few commentorswere concernedthat criterion two, which capturesthe legislative requirementsset out in Section2913(b)(1)-(3), did not recite verbatim the languagein the BRAC Draft Deliberative Document-For DiscussionPurposesOnly-Do COORDINATIONDRAFT dcn: 9268 Not ReleaseUnder FOIA Page5 of 10 statute. They urged incorporationof "Preservationof' into the fmal criteria to ensurethat the 2005 BRAC round preservethe infrastructurenecessaryto supportfuture military requirements. The Departmentdoes not agreewith the assertionthat the criteria must contain the word "preservation" in orderto comply with the BRAC statute or with congressionalintent. The report of the Committee of Conferenceto accompanyS. 1438,the National Defense Authorization Act for Fiscal Year 2002, refers to the preceding list of requirementsas "factors that must be evaluatedand incorporatedin the Secretary'sfinal list of criteria." The BRAC statutedoes not require, as a matterof law, a verbatim recitation of the factors set out in section 2913. On the contrary, a requirementfor a verbatim recitation is inconsistentwith the requirementsfor publication of draft criteria, an extensivepublic commentperiod, and finalization of criteria only after reviewing public comments. lfthe Secretarywere bound to adoptthe statutorylanguageas his criteria, the detailed publication processrequired by Congress would be meaningless. While the criteria proposedby the Secretarydo not recite the statutory languageverbatim, they do fully reflect the nine factors set out in the statute,and as suchare legally sufficient. Additionally, selectioncriteria must facilitate discriminating amongvarious military installations, assessingthe value of eachand comparing them againsteachother to see which installations offer the greatestvalue to the Department. Criteria one through three assess the assetsof military installations againsteachother, valuing those with more of those assets more highly than those without thoseassets. By valuing the installations with more of these assetshigher, the Department"preserves"thesevaluable assetsset out in the criteria. However, if the Departmentwere to modify the criteria to include "preservation,"as suggestedin the comment,we would be forced to assesshow an installation "preserves"somethingrather than whetheran installation possessesthe assetsworthy of preservation. Therefore,while the Departmentagreesthat preservationof theseassetsis important, including the word preservation in the criteria will not further that objective, and may actually force an opposite result.~ (d) A few commentorsstressedthe importanceof maintaining a surgecapacity. Surge requirementscanarise for any numberof reasons,including contingencies,mobilizations, or extendedchangesin force levels. The Departmentbelieves that as currently drafted criteria one and three capturethe conceptof surgecapacity. As was the casewith the criteria used in the past three rounds ofBRAC, criterion one requiresthe Departmentto consider "current and~" mission capabilities and criterion three assesses the "ability to accommodatecontingency. mobilization and future total force reauirements". In 1999, after three rounds of BRAC using thesecriteria (and similar criteria used in the fIrst round of BRA C), the Departmentlooked closely at its ability to accommodateincreasedrequirementsand found that even after four rounds of baserealignmentsand closuresit could accommodatethe reconstitution of 1987force structure -a significantly more robust force than exists today -which is a more demanding scenariothan a short term mobilization. Further, as required by Section2822 of the National DefenseAuthorization Act for Fiscal Year 2004 (Public Law 108-136),the Secretary,as part of his assessmentof probablethreatsto nationalsecurity, will determinethe "potential, prudent, surgerequirementsto meetthosethreats." (e) Numerouscommentorsstatedthat previous BRAC rounds failed to evaluateresearch, development,test and evaluation,engineering,procurement,and technical facilities accurately, becauseof the lack of effective criteria to considerthe featuresessentialto their performance. They noted that the criteria applied to suchfacilities in previous rounds were largely the same dcn: 9268 Draft DeliberativeDocument-For DiscussionPurposes Only-Do Not ReleaseUnderFOIA COORDINATIONDRAFT Page6 of 10 criteria that were applied to operations,training and maintenancefacilities serving very different functions. DoD highly values its research,development,test and evaluation, engineering, procurement,and technicalfacilities. The Departmentbelieves that research,development, engineering,procurementand other technicalcapabilitiesare elementsof military captured within criteria one through four. The Departmentwill considermilitary value in a way that incorporatestheseelements. (f) Severalcommentorsalso raisedconcernsthat the criteria did not take into accountthe availability of intellectual capital, critical trade skills, a highly trained work force, allied presence,and the synergy among nearbyinstallations and betweenDoD facilities and nearby industrial clustersand academicinstitutions. DoD appreciatesthe importance of having an availablepool of intellectual capital and critical trade skills that make up, and allow us to recruit and retain, a highly trained and experiencedwork force, as well as the synergyprovided by nearbyfacilities. DoD believesthat, to the extent that the availability of highly skilled civilian or contractorwork forces and relationships with local institutions and other installations influence our ability to accomplishthe mission, they are capturedin criteria one, three and seven. (g) Somecommentorsurged DoD to considerstrategic location and irreplaceableproperties and facilities as part of military value. DoD agreesthat the availability and condition of land and facilities are an integral part of military value and believestheseissuesare covered under criterion two. Furthermore,the strategic location of DoD facilities informs criteria one and three. (h) Somecommentorssaid that an installation's demonstratedability to transform, streamline businessoperations,and managesuccessfulprogramsshould be consideredas part of military value. In someinstancescommentorspraisedthe outstandingwork of a particular installation or group of installations. DoD recognizesand appreciatesthe outstandingwork done by its installations. We believe that criteria one and three captureboth the ability to perform a mission and the quality of that work -both of which, in turn, capturethe willingness to transform and streamline. (i) Somecommentorsrecommendedthat DoD consideran installation's role in homeland defense,security, domesticpreparedness,and the war on terrorism as a part of military value. Somesuggestedthat an installation's proximity to and ability to protect vital national assets, transportationfacilities, major urban centersand international borderswas a key consideration, while othersindicated that geographicdiversity or complete isolation should be the real objective in orderto enhancesecurity. The securityof our nation, whether expressedas homeland defense, domesticpreparedness,or fighting the war on terrorism, is an important DoD mission. Both the BRAC legislationand DoD' s implementationof it ensurethat homeland defenseand security are consideredin the BRAC process. Specifically, criterion two requires DoD Componentsto consider"[ t]he availability and condition of land, facilities and associatedairspace. ..as staging areasfor the use of the Armed Forces in homelanddefensemissions." Additionally, as a mission of DoD, all of theseissuesare capturedby the requirementsof criteria one and three. (j) Somecommentorsnoted that, in someareasof the country, expanding civilian use of adjacentlands is encroachingupon military propertiesand has impacted critical training dcn: 9268 Draft DeliberativeDocument-For DiscussionPurposes Only-Do Not ReleaseUnderFOIA COORDINATIONDRAFT Page7 ofl0 requirementsand preparationsfor deployments. Somesaid that installations located in rural regions with accessto large areasof operationalairspaceover land and water as well as direct ingress/egressroutes from water to land will be key to future military operationaland training requirements. DoD believes that the issue of encroachmentis capturedby criterion two which requiresthe Departmentto considerthe availability and condition of land, facilities and associatedairspace. (k) Somecommentorsrecommendedthat DoD considerthe difficulty of relocatingmissions and functions requiring federal nuclear licensesor environmentalpermits, as part of military value. DoD recognizesthe importance of federal licensesand permits. The ability to accommodatecurrentand future force requirements,which includes Federal licensing and permitting requirements,is covered under criteria one, two and three. Furthermore,the impact of environmentalcomplianceactivities (i.e., permits and licenses)is also specifically capturedin criterion eight. (1) A few commentorswere concernedthat the "cost of operations" languagein criterion four would not be a meaningful measureof military value becauseit would appearto encourage the closure or realignmentof an installation in a high cost of living area,despite important strategicreasonsfor retaining that installation. BecauseDoD operatesin a resourceconstrained environment,all resources-land, facilities, personnel,and financial -have value. The Departmentbelieves monetaryresourcesare an inextricable componentof military value becauseall equipment,services,and military salariesare dependenton the availability of this resource. Therefore,the extentto which one installation can be operatedat less costthan another is worthy of consideration,particularly for businessoperations,althoughthe importanceof this will vary dependingon the function involved. (3) Other Considerations: (a) Criteria five through eight deal with other considerations,suchas costsand savingsand economic,community, and environmentalimpacts. (b) Somecommentorsrecommendeda standardizedinterpretationof the costcriteria. The Departmentagreesthat costsand savings must be calculateduniformly. To that end, we are improving the Costof Base RealignmentActions (COBRA) model used successfullyin previous BRAC rounds to addressissuesof uniformity and will provide it to the Military Departmentsand the Joint Cross-ServiceGroups for calculation of costs,savings,and return on investmentin accordancewith criterion five. (c) Severalcommentorsstatedthat total mission supportcostsassociatedwith reestablishing or realigning a military activity should be considered,including suchthings as the costsof reestablishingintellectual capital and relationships with nearbybusinessesand academic institutions, the costsassociatedwith mission disruption, the costs of contractorrelocations,and the availability and reliability of raw materials and supplies. DoD has improved the Costof Base RealignmentActions (COBRA) model used in prior BRAC rounds to more accuratelyand appropriatelyreflect the variety of costs of baserealignmentand closure actions. DoD will dcn: 9268 Draft DeliberativeDocument-For DiscussionPurposes Only-Do Not ReleaseUnderFOIA COORDINATIONDRAFT Page8 of 10 provide it to the Military Departmentsand the Joint Cross-ServiceGroups for calculation of costs,savings,and return on investmentin accordancewith criterion five. (d) A few commentorsstated DoD should considerthe total resourceimpact of a recommendationto the Federal Governmentand reflect both costsand savings. The Department understandsthe decisionmaking value of comprehensiveconsiderationof costs. In accordance with section29l3(d), the Department's application of its cost and savings criterion will "take into accountthe effect of the proposedclosure or realignment on the costsof any other activity of the Departmentof Defense or any other Federal agencythat may be required to assume responsibility for activities at the military installations." The Departmentwill issueguidanceto the Military Departmentsand the Joint Cross ServiceGroups that incorporatesthis requirement in the application of criterion five. ( e) Somecommentorsaskedthat DoD considerthe impact of closing or realigning an installation on the local community and on military retirees in the areawho rely on the installation's medical facilities, commissary,and other activities. While military value criteria must be the primary consideration,the impact of a closure or realignment on the local community, including military retirees residing therein, will be consideredthrough criteria five, six, and seven. The DoD Componentswill calculateeconomic impact on existing communities by measuringthe effects on direct and indirect employmentfor eachrecommendedclosure or realignment. Theseeffects will be determinedby using statistical information obtained from the Departmentsof Labor and Commerce. This is consistentwith the methodology used in prior BRAC rounds to measureeconomic impact. (f) Somecommentorsaskedthat DoD recognizethat their state, facility or community was affected by closuresand realignmentsin prior BRAC rounds and that it, therefore,be protected in this round. Theseand other commentorssuggestedthat the Departmentview economic impact cumulatively or take into accountthe needof a community for an economic boost. Still others suggestedthat the current BRAC round respectdecisionsmade in prior BRAC rounds and not take any action inconsistentwith a prior recommendation. DoD recognizesthe impact that BRAC can have on local communities,and makes every effort in the implementationphase ofBRAC to softenthe effect of closuresand realignmentson local communities. However, the BRAC statute specifically requiresthe Secretaryto considerall military installations in the United Statesequally, without regard to whetherthat installation has previously beenconsidered for closure or realignment. (g) The United StatesGeneralAccounting Office (GAO) statedthat the draft criteria, if adopted,would add an elementof consistencyand continuity in approachwith those of the past three BRAC rounds. It noted that its analysisof lessonslearned from prior BRAC rounds affinned the soundnessof thesebasic criteria and generallyendorsedtheir retention for the future, while recognizing the potential for improving the processby which the criteria are used in decision-making. It suggestedthat DoD clarify two issues: (1) the Department's intention to considerpotential coststo other DoD activities or federal agenciesthat may be affected by a proposedclosure or realignment recommendationunderthe criterion related to cost and savings, and (2) the extentto which the impact of costsrelatedto potential environmentalrestoration, dcn: 9268 Draft Deliberative Document-For DiscussionPurposesOnly-Do COORDINATION DRAFT Not ReleaseUnder FOIA Page9 of 10 wastemanagement,and environmentalcomplianceactivities will be included in cost and savings analysesof individual BRAC recommendations. As discussedabove, DoD recognizesthat the BRAC legislation required it to considercost impacts to other DoD entities and Federalagenciesin its BRAC decision-makingand will issue implementing guidanceto ensurethat suchcostsare consideredunder criterion five. On the secondpoint raised by GAO, which was echoedby a few other commentors,DoD policy guidancehas historically stipulated that environmentalrestorationcostswere not to be factored into analysesof costsand savingswhen examiningpotential installations for realignmentand closure, since DoD was obligated to restorecontaminatedsites on military installations regardlessof whether or not they were closed. DoD concurs with GAO that determining such costscould be problematic in advanceof a closuredecision, since reuseplans for BRAC propertieswould not yet be determinedand studiesto identify restorationrequirementswould not yet be completed.As suggested,DoD will issueguidanceto clarify considerationof environmental costs. (h) A few commentorssuggestedthat criterion seven-the ability of both the existing and potential receiving communities' infrastructureto supportforces, missions,and personnel-be included in military value and receive priority consideration. DoD believes,and has demonstratedin previous BRAC rounds, that factors falling within this criterion canbe applied within the military value criteria if they directly relate to the elementsof criteria one through four. (i) A few commentorsaskedthe Departmentto considerthe socialas well as the economic impact on existing communities. The Departmentrecognizesthat its installations can be key componentsof the social fabric of the communities in which they are located, in both a positive or negative sense. For instance,the BRAC statuterequires that the Departmentconsiderany notice received from a local governmentin the vicinity of a military installation that it would approve of the closure or realignment of the installation. Additionally, becausesocial impact is an intangible factor that would be difficult for the Departmentto quantify and measurefairly, issuesof social impact are bestaddressedto the BRAC Commissionduring its processof receiving public input. G) A few commentorswantedto ensurethat, as the Departmentconsidersthe ability of community infrastructure to supportthe military, DoD view that ability as evolving, and consider the willingness and capacity of the community to make additional investments. The infrastructure provided by the communitiessurrounding our installationsis a key componentin their efficient and effective operation. As the BRAC legislation has establisheda stringent timetable for the Secretaryto arrive at recommendations,the Departmentmust focus on the existing, demonstratedability of a community to supportits installation, especiallyas potential investmentactions may not translateinto reality. (k) One comrnentorrequestedclarification that criterion eight -environmental impact includes considerationof the impact of the closure or realignmenton historic properties. As has dcn: 9268 Draft Deliberative Document-For DiscussionPurposesOnly-Do COORDINATIONDRAFT Not ReleaseUnder FOIA Page 10 of 10 beenthe casein prior rounds of baseclosure,the Departmentwill considerhistoric properties as a part of criterion eight. (1) Severalcomrnentorsstated that the criteria should considerthe effect of closuresand realignmentson the quality of life and morale of military personneland their families. The Departmentagreesthat the quality of life provided to its military personneland their families significantly contributesto the Department's ability to recruit and retain quality personnel. Military personnelare betterable to perform their missions when they feel comfortable that their needsand those of their families are takencare of. The Departmentbelieves that quality of life is capturedthroughoutthe criteria, particularly criterion seven. C. Previous Federal Register References 1. 2. 3. 4. 5. 6. 7. 55 FR 49678, November 30, 1990: Draft selectioncriteria and requestfor comments. 55 FR 53586, December31, 1990: Extend commentperiod on draft selectioncriteria. 56 FR 6374, February 15, 1991: Final selectioncriteria and analysisof comments. 57 FR 59334, December15, 1992: Final selectioncriteria. 59 FR 63769, December9, 1994: Final selectioncriteria 68 FR 74221, December23,2003: Draft selectioncriteria and requestfor comments. 69 FR 3335, January23, 2004: Extend commentperiod on draft selectioncriteria. DATED: February 10,2004 Linda Bynum Alternate OSD Federal Register Liaison Officer Departmentof Defense
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