Summary: The Air Force decided in 1992 to reconfigure its fighter force into smaller squadrons. This decision was made at a time when the Defense Department was seeking to reduce military operating and infrastructure costs. GAO found that the organizational structure of the Air Force's fighter force is not cost-effective. By operating F-15s and F-16s in smaller squadrons, the Air Force boosts the number of squadrons above the number that would have been used in the traditional 24-aircraft configuration. This reconfiguration has increased operating costs and slowed reductions in infrastructure costs. Although the Air Force considers smaller fighter squadrons to be beneficial, it has not undertaken any studies to support its decision. The Air Force's arguments for using smaller squadrons do not justify the additional expense. GAO evaluated a range of options for consolidating squadrons that could cut operating costs by as much as $745 million during fiscal years 1997-2002. In addition, consolidating squadrons could result in base closures, reducing infrastructure costs by about $50 million per base closure per year.