Summary: Because of continuing reductions in the Naval Electronic Systems Command's (NESC) civilian staff position authorization and high grade restrictions and increasing workload, NESC believed that closing the Naval Electronic Systems Engineering Center at Philadelphia, Pennsylvania would provide the greatest benefit in achieving programmed civilian staff reductions while still carrying out its mission. The Navy closed the center as planned in January 1979, and reassigned its mission to the Naval Electronic Systems Engineering Centers in Vallejo, California and Portsmouth, Virginia and the Naval Electronic Systems Engineering Activity in Saint Inigoes, Maryland. Some of the positions transferred to Saint Inigoes did not involve a change in duty station, so that the Naval Electronic Systems Engineering Activity Detatchment at Philadelphia and the Naval Electronic Systems Command at Mechanicsburg, Pennsylvania remained in place.
The estimated one-time implementation costs of $108,000 for closing the center included $71,000 for personnel relocation, $2,600 for severance payment, and $32,000 for equipment relocation. It was estimated that this realinement could save $77,000 annually. The Navy applied position eliminations to meet a programmed staff-level cut required by law which resulted in personnel savings to the Government. Although the closure did not result in personnel savings above the level which could be expected if the closure had not been effected, GAO believed the disestablishment to be cost effective.
