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Force Structure: Cost of Two Additional Army Divisions Could Be Significant

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Report Type Reports and Testimonies
Report Date Sept. 12, 1994
Report No. NSIAD-94-238BR
Subject
Summary:

By retaining 12 divisions rather than the 10 recommended by the Defense Department's Bottom Up Review, the Army would incur additional expenses during fiscal years 1995-99 of anywhere from $1.2 billion to more than $4.9 billion, depending on how it decided to staff the two divisions. One option would be for the Army to staff these components by transferring military personnel from noncombat military positions to positions in the division base and echelon above division and hiring civilians to fill the vacant noncombat jobs. This option would entail additional Army payroll of about $3.7 billion. Another option would be for the Army to staff the division bases and echelons above division by drawing from other existing combat units. Although the Army would not incur any salary costs under this option, the Army views it as undesirable because it would deplete the Army's force structure. It is possible that the Army could incur an additional $4.9 billion over a six-year time period because retaining two additional divisions precludes the Army from closing two division installations.

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