This is the accessible text file for GAO report number GAO-10-167R 
entitled 'Defense Infrastructure: The Army Needs to Establish 
Priorities, Goals, and Performance Measures for Its Arsenal Support 
Program Initiative' which was released on November 5, 2009. 

This text file was formatted by the U.S. Government Accountability 
Office (GAO) to be accessible to users with visual impairments, as part 
of a longer term project to improve GAO products' accessibility. Every 
attempt has been made to maintain the structural and data integrity of 
the original printed product. Accessibility features, such as text 
descriptions of tables, consecutively numbered footnotes placed at the 
end of the file, and the text of agency comment letters, are provided 
but may not exactly duplicate the presentation or format of the printed 
version. The portable document format (PDF) file is an exact electronic 
replica of the printed version. We welcome your feedback. Please E-mail 
your comments regarding the contents or accessibility features of this 
document to Webmaster@gao.gov. 

This is a work of the U.S. government and is not subject to copyright 
protection in the United States. It may be reproduced and distributed 
in its entirety without further permission from GAO. Because this work 
may contain copyrighted images or other material, permission from the 
copyright holder may be necessary if you wish to reproduce this 
material separately. 

GAO-10-167R: 

United States Government Accountability Office: 
Washington, DC 20548: 

November 5, 2009: 

The Honorable Carl Levin:
Chairman:
The Honorable John McCain:
Ranking Member:
Committee on Armed Services:
United States Senate: 

The Honorable Ike Skelton:
Chairman:
The Honorable Howard McKeon:
Ranking Member:
Committee on Armed Services:
House of Representatives: 

Subject: Defense Infrastructure: The Army Needs to Establish 
Priorities, Goals, and Performance Measures for Its Arsenal Support 
Program Initiative: 

The Army has three government-owned and operated manufacturing arsenals 
that it considers vital to the Department of Defense's (DOD) industrial 
base because they provide products or services that are either 
unavailable from private industry or ensure a ready and controlled 
source of technical competence and resources in case of national 
defense contingencies or other emergencies. These three arsenals are 
Pine Bluff Arsenal, Arkansas; Rock Island Arsenal, Illinois; and 
Watervliet Arsenal, New York. Pine Bluff's core mission is the 
production of conventional ammunition and other types of munitions. 
Rock Island's core mission is weapons manufacturing, and the arsenal is 
home to the Army's only remaining foundry. Watervliet is the Army's 
only cannon maker and also produces other armaments and mortars. 

Historically, the Army's arsenals have generally had vacant or 
underutilized space. For many years the Army has not provided the 
capital investment needed to keep pace with modern manufacturing 
requirements and retain core skills in the arsenal workforce. 
Additionally, the arsenals have generally had lower workloads during 
peacetime, but since the onset of the wars in Iraq and Afghanistan they 
have experienced a surge in workloads to provide vital manufacturing 
capabilities, such as producing armor kits to harden Army personnel 
vehicles after it was found that the Army's existing vehicles were 
susceptible to improvised explosive devices. 

During the defense drawdown of the 1990s, the manufacturing arsenals 
were struggling from a diminishing and fluctuating workload, high 
product costs, significant reductions in force, and a fear that their 
core skills were being lost. The National Defense Authorization Act for 
Fiscal Year 2001 authorized the Arsenal Support Program Initiative 
(ASPI), as a demonstration program designed to help maintain the 
viability of the Army's manufacturing arsenals.[Footnote 1] The Army 
Materiel Command provides oversight for the ASPI program and the TACOM 
[Footnote 2] Life Cycle Management Command exercises program 
management. The ASPI program manager for all three arsenals resides 
within the TACOM Life Cycle Management Command located at Rock Island. 
[Footnote 3] The Army has entered into facilities use contracts with 
local nonprofit economic development organizations that serve as site 
managers to market underutilized space on Rock Island[Footnote 4] and 
Watervliet for use by commercial tenants who either rent the space or 
provide services in kind to the manufacturing facilities. Pine Bluff 
has had limited participation in the ASPI program and currently does 
not have a site manager. All revenue generated from ASPI leasing 
agreements is provided to the manufacturing facilities on the arsenals 
and is intended to help reduce the arsenals' overhead, maintenance, and 
product costs. 

The ASPI authority sets forth 11 purposes for the program, including 
utilizing and employing the arsenals' skilled manufacturing workforce 
by commercial firms; encouraging private commercial use of 
underutilized government facilities; reducing the government's cost of 
ownership and the cost of products produced at the arsenals; and 
fostering cooperation between the Army, state and local governments, 
and private companies in the development and joint use of the Army's 
arsenals. (See table 1 in the Background section of this report for a 
complete listing of the 11 ASPI purposes). While the Army did not 
advocate for the initial ASPI authority, it has adopted the purposes as 
its broad goals for the program. Additionally, although a 2007 Army 
report[Footnote 5] to the congressional defense committees recommended 
permanent authority for the program, the Army has not included funding 
for ASPI in its annual budget requests. Rather, Congress has funded 
ASPI through congressionally directed funds in annual appropriations 
acts and conference reports. Through July 2009, the Army has received 
almost $74 million dollars for the ASPI program. Nearly all of these 
funds are used to renovate underutilized space and attract commercial 
firms to the arsenals. 

The conferees on the National Defense Authorization Act for Fiscal Year 
2008 expressed concern that ASPI has had limited success in 
contributing to the retention of core manufacturing skills at the 
arsenals, and they have noted that the commercial ventures the program 
has attracted to the arsenals appear to have minimal connection to the 
arsenals' core missions of producing munitions, armaments, and other 
military products. In the National Defense Authorization Act for Fiscal 
Year 2008,[Footnote 6] Congress extended the ASPI program authorization 
through fiscal year 2010, and in its accompanying report expressed the 
expectation that DOD should show progress in the selection and 
execution of projects that enhance the arsenals' core missions and 
related workforce skills and result in contributions to the 
recapitalization of plants and equipment in the additional two years of 
ASPI authorization provided by that statute.[Footnote 7] 

The conference report accompanying the National Defense Authorization 
Act for Fiscal Year 2008 directed us to review the ASPI program and 
report to the defense authorization committees. Our objective for this 
review was to determine the extent to which the Army has addressed the 
intended purposes set forth in the ASPI authorizing legislation. 
Additionally, in response to congressional interest, we have provided 
information in enclosure 2 of this report that discusses other 
available authorities that the Army uses or could use to improve the 
viability of its manufacturing arsenals. In response to direction by 
the conferees to conduct a business case analysis that examines the 
cost, return on investment, and economic impact of the ASPI program, 
the Congressional Budget Office expects to submit its report later this 
year. Accordingly, our review did not address those aspects of the ASPI 
program. 

Scope and Methodology: 

To determine the extent to which the ASPI program has addressed its 
intended purposes, we reviewed the Army's 2007 report to the 
congressional defense committees on the results of the ASPI program 
since its inception. We also assessed the criteria used by the ASPI 
program manager to determine whether ASPI tenants have addressed the 
purposes set forth in the ASPI authority. While the Rock Island and 
Watervliet site managers have office space on the arsenals, for the 
purposes of this review, we did not consider the site managers as ASPI 
tenants because of their unique role of marketing the ASPI program to 
commercial companies and managing the leases for tenants secured under 
the program. Additionally, we contacted officials from the Office of 
the Assistant Secretary of the Army for Acquisition, Logistics and 
Technology; the Army Materiel Command; and the TACOM Life Cycle 
Management Command to obtain policies, guidance, plans, and internal 
control procedures for the ASPI program. We also met with the ASPI 
program manager, and the ASPI site managers at Rock Island and 
Watervliet, who are responsible for marketing ASPI to commercial firms, 
as well as Army officials at Pine Bluff, to discuss whether the ASPI 
program purposes were being addressed and any issues that may hinder 
program success. We further discussed and analyzed the strategies taken 
by each arsenal to address ASPI purposes. During our visits to the 
manufacturing arsenals, we judgmentally selected some ASPI tenants to 
interview based on their availability (10 out of 44 total tenants) to 
ascertain their views on how the APSI program is working. In order to 
provide additional information to the congressional defense committees 
on the Army's use of other authorities to improve the viability of the 
arsenals, we reviewed various other legislative authorities involving 
Army industrial facilities and public-private partnerships to determine 
whether such authorities are applicable for use in improving the 
viability of the arsenals. We briefly summarize select provisions of 
each of these authorities in enclosure 2 of this report. We interviewed 
Army headquarters and arsenal officials to determine whether these or 
any other authorities had been employed for the benefit of the Army's 
arsenals, and we obtained their perspectives regarding any challenges 
that may exist in using these authorities to attract commercial 
tenants. We conducted this performance audit from December 2008 through 
November 2009 in accordance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objectives. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objectives. 

Summary: 

Although the Army's three manufacturing arsenals have secured tenants 
that collectively address all but one of the purposes of the ASPI 
authority, the arsenals have had limited success in attracting ASPI 
tenants that enhance their core manufacturing missions and related 
workforce skills. According to the Army, 44 tenants had been secured 
under the ASPI program through the end of July 2009 (27 at Rock Island, 
16 at Watervliet, and 1 at Pine Bluff), and each tenant addressed at 
least 1 of the 11 ASPI purposes.[Footnote 8] However, the Army has 
determined that, of the 44 tenants, only 4 are engaged in activities 
that have helped to strengthen the arsenals' core manufacturing 
capabilities or related workforce skills. ASPI site managers are 
generating operating revenue in the form of rent paid by ASPI tenants 
and have been more successful in securing commercial tenants needing 
administrative office space, which tends to be more profitable than 
leasing manufacturing space. Nonetheless, while ASPI tenants are 
generating revenue for the arsenals, program and site managers have 
generally been free to implement the program using a variety of 
approaches that may not be significantly contributing to the core 
manufacturing missions of the arsenals because the Army Materiel 
Command has provided them with only limited guidance. Given the 
discretion afforded by the ASPI authority--which does not prioritize 
its 11 purposes or require that all 11 purposes be addressed--the Army 
has missed an opportunity to ensure that program execution is aligned 
with its own priorities because Army guidance does not specify which of 
the authority's 11 purposes the Army considers to be its highest 
priorities. Further, the guidance does not incorporate the priorities 
identified in the conference report accompanying the National Defense 
Authorization Act for Fiscal Year 2008, which encouraged the Army to 
recruit more tenants that enhance the arsenals' core missions and 
workforce skills. Additionally, the Army has not developed a strategy 
that describes the methods it plans to use to achieve its highest 
priorities and has not established performance goals and measures for 
the ASPI program. Our prior work has emphasized that performance goals 
should be measurable and results-oriented.[Footnote 9] Although the 
Army has adopted the 11 ASPI purposes as its broad goals for the 
program, these goals can not be easily quantified. Similarly, while the 
Army has developed some metrics to assess the program, existing metrics 
measure only the number of ASPI contracts secured and cost savings or 
cost avoidance to the Army, rather than the extent to which the program 
is making progress toward achieving the broad goals represented by the 
purposes established in the ASPI authority. Without clearly defined 
priorities, performance goals, and measures, the Army may be unable to 
respond to congressional direction or ensure that its own interests are 
being addressed. Further, the arsenals could be at risk of diminished 
core manufacturing capabilities that are considered vital to the 
national defense, and thus these skills and capabilities may not be 
readily available when needed. We are making three recommendations to 
improve the Army's execution of the ASPI program to help ensure that it 
addresses the broad goals of both congressional conferees and the Army 
by distinguishing its highest priorities among the ASPI purposes and 
establishing a strategy that includes measurable goals and performance 
measures to monitor progress the Army has made toward addressing the 
ASPI purposes. 

We provided DOD with a draft of this report for comment on September 1, 
2009, but received no comments. We also provided the draft report to 
the ASPI site managers for the Rock Island and Watervliet arsenals and 
incorporated their comments as appropriate into this report. 

Background: 

The core missions of the three Army government-owned and operated 
manufacturing arsenals are as follows: 

* Pine Bluff Arsenal, Arkansas produces, renovates, and stores a wide 
array of munitions and chemical/biological defense systems, including 
over 60 different conventional ammunition products ranging in caliber 
from 40 millimeters to 175 millimeters. Pine Bluff also produces 
munitions containing payloads for smoke, nonlethal, riot control, 
incendiary, illumination, and infrared uses. 

* Rock Island Arsenal, Illinois manufactures weapons and weapon 
components, including the M119A2 howitzer, artillery, gun mounts, 
recoil mechanisms, small arms, aircraft weapon subsystems, and weapon 
simulators. Rock Island also manufactures mobile maintenance systems, 
and has the nation's only remaining Army foundry. 

* Watervliet Arsenal, New York is the Army's only cannon manufacturer 
and produces armaments, mortars, cannons, and recoilless rifles. It has 
the nation's only large bore cannon production facility and maintains 
proprietary processes for heat treating and rotary forging. 

The National Defense Authorization Act for Fiscal Year 2001, which 
first authorized ASPI, includes 11 purposes for the ASPI program as 
shown in Table 1; however, there is no requirement for the 
manufacturing arsenals to address each ASPI purpose, nor does the 
authority prioritize the purposes. The authorization for the ASPI 
program currently extends through fiscal year 2010. 

Table 1: The 11 Purposes of the ASPI Program: 

1. To provide for the utilization of the existing skilled workforce at 
the Army manufacturing arsenals by commercial firms. 

2. To provide for the reemployment and retraining of skilled workers 
who, as a result of declining workload and reduced Army spending on 
arsenal production requirements at these Army arsenals, are idled or 
underemployed. 

3. To encourage commercial firms, to the maximum extent practicable, to 
use these Army arsenals for commercial purposes. 

4. To increase the opportunities for small businesses (including 
socially and economically disadvantaged small business concerns and new 
small businesses) to use these Army arsenals for those purposes. 

5. To maintain in the United States a work force having the skills in 
manufacturing processes that are necessary to meet industrial emergency 
planned requirements for national security purposes. 

6. To demonstrate innovative business practices, to support Department 
of Defense acquisition reform, and to serve as both a model and a 
laboratory for future defense conversion initiatives of the Department 
of Defense. 

7. To the maximum extent practicable, to allow the operation of these 
Army arsenals to be rapidly responsive to the forces of free market 
competition. 

8. To reduce or eliminate the cost of Government ownership of these 
Army arsenals, including the costs of operations and maintenance, the 
costs of environmental remediation, and other costs. 

9. To reduce the cost of products of the Department of Defense produced 
at these Army arsenals. 

10. To leverage private investment at these Army arsenals through long- 
term facility use contracts, property management contracts, leases, or 
other agreements that support and advance the demonstration program for 
the following activities: (A) Recapitalization of plant and equipment; 
(B) Environmental remediation; (C) Promotion of commercial business 
ventures; and (D) Other activities approved by the Secretary of the 
Army. 

11. To foster cooperation between the Department of the Army, property 
managers, commercial interests, and State and local agencies in the 
implementation of sustainable development strategies and investment in 
these Army arsenals. 

Source: Pub.L. No. 106-398, § 343 (2001). 

[End of table] 

The Army has contracted with local non-profit economic development 
organizations to serve as site managers to market the arsenals' 
underutilized space to commercial firms. The site manager for 
Watervliet is the Arsenal Business and Technology Partnership of 
Watervliet, New York. The ASPI site manager for Rock Island Arsenal is 
the Rock Island Arsenal Development Group, of Rock Island, Illinois. 
Pine Bluff has had limited participation in the ASPI program and 
currently does not have a site manager. 

In comments to a draft of our report, the Watervliet site manager 
commented that there is no evidence that the two initial statutory 
purposes were given priority by the drafters of the program when the 
ASPI legislation was developed in 2000. Additionally, the site manager 
commented that there is repeated and consistent evidence that the Army, 
at every level, considered program performance and emphasized the 
commercial use of underused facilities as the most important program 
priority. However, according to the Army's 2007 report on ASPI to the 
congressional defense committees, the Army views the primary goal of 
the ASPI program as attracting commercial entities to help the arsenals 
maintain their critical manufacturing capabilities and reduce 
manufacturing costs. Furthermore, as stated above, the conferees on the 
National Defense Authorization Act for Fiscal Year 2008 have expressed 
an expectation that DOD should show progress in the selection and 
execution of projects that enhance the arsenals' core missions and 
related workforce skills and result in contributions to the 
recapitalization of plants and equipment in the additional two years of 
ASPI authorization provided by that statute. 

When ASPI was initially implemented, it was managed by the Joint 
Munitions Command, a major subordinate command under the Army Materiel 
Command.[Footnote 10] ASPI was established with authorities similar to 
the Armament Retooling and Manufacturing Support initiative created by 
Congress in 1992, which is also managed by the Joint Munitions Command. 
Under this initiative, government-owned, contractor-operated Army 
ammunition plants and depots are authorized to lease their facilities 
to private sector firms to help offset the government's cost of 
ownership of those facilities while maintaining a workforce readiness 
capability and fostering cooperation with state and local interests for 
development. Unlike ASPI, the Armament Retooling and Manufacturing 
Support initiative is funded in the Army's annual budget requests. 

Congress has funded the ASPI program through congressionally directed 
funds within the annual appropriation for Army procurement of Weapons 
and Tracked Combat Vehicles. Nearly all of the ASPI funds are used to 
renovate underutilized space at the arsenals to attract potential 
commercial tenants. In some cases these renovations can be extensive 
because some facilities have been unused for many years and have 
deteriorated over time. In the earlier years of ASPI, the ASPI program 
manager distributed these funds among the three arsenals based on the 
priority the program manager gave to approved projects. However, 
according to the ASPI program manager, since late 2005 the 
congressionally directed funds have been specifically designated for 
Rock Island and Watervliet prior to receipt by the Army. The ASPI 
program manager also stated that this change in the funding process 
severely limited the authority of the program management office to 
select the projects it believed would provide the most benefit to the 
Army, and, as a result, Pine Bluff Arsenal no longer receives funding 
for ASPI projects due to this predetermination. Table 2 shows the 
amount of congressionally directed funds the ASPI program received and 
the amounts obligated[Footnote 11] from fiscal year 2002 through July 
2009. 

Table 2: Congressionally Directed Funds Appropriated and Obligated to 
Support ASPI from Fiscal Year 2002 through July 2009: 

Fiscal year: 2002; 
Appropriated funding: $3.24 million; 
Amount obligated as of July 2009: $3.24 million. 

Fiscal year: 2003; 
Appropriated funding: $4.20 million; 
Amount obligated as of July 2009: $4.19 million. 

Fiscal year: 2004; 
Appropriated funding: $3.45 million; 
Amount obligated as of July 2009: $3.45 million. 

Fiscal year: 2005; 
Appropriated funding: $10.93 million; 
Amount obligated as of July 2009: $10.93 million. 

Fiscal year: 2006; 
Appropriated funding: $8.50v; 
Amount obligated as of July 2009: $8.50 million. 

Fiscal year: 2007; 
Appropriated funding: $8.85 million; 
Amount obligated as of July 2009: $8.85 million. 

Fiscal year: 2008; 
Appropriated funding: $21.10 million; 
Amount obligated as of July 2009: $20.38 million. 

Fiscal year: 2009[A]; 
Appropriated funding: $13.46 million; 
Amount obligated as of July 2009: $4.37 million. 

Fiscal year: Totals; 
Appropriated funding: $73.73 million; 
Amount obligated as of July 2009: $63.91 million. 

Source: GAO analysis of Army data. 

[A] The total obligated amount shown is as of July 31, 2009, and thus 
does not reflect any additional obligations that may have occurred 
during the remainder of fiscal year 2009. 

[End of table] 

Additionally, the ASPI site managers have received some funds from 
other sources in support of the ASPI program. For example, the Rock 
Island Development Group received $200,000 each from the State of 
Illinois and the State of Iowa; and the Arsenal Business and Technology 
Partnership received approximately $26 million from State of New York 
and private grant funding. 

In commenting on a draft of the Army's 2007 report to the congressional 
defense committees assessing implementation of ASPI, Army Headquarters 
stated that it did not support permanent funding for ASPI in its 
budget, citing concerns that ASPI had not reduced the cost of 
manufactured products and that available funds could be better used for 
other higher priority modularity and modernization programs. 
Nonetheless, the Army, in its final report, recommended that Congress 
consider establishing ASPI as a permanent program. As noted previously, 
the Congressional Budget Office was directed by the conference report 
accompanying the National Defense Authorization Act for Fiscal Year 
2008 to conduct a business case analysis that examines the cost, return 
on investment, and economic impact of the ASPI program and expects to 
issue its report later this year. 

Although the Army Has Addressed the Purposes of ASPI, It Has Not 
Clearly Established Its Highest Priorities or Developed a Strategy That 
Includes Performance Goals, and Its Ability to Measure Progress Is 
Limited: 

Arsenal Tenants Address All but One of the Purposes of the ASPI 
Program, but the Arsenals Have Had Limited Success in Securing Tenants 
That Enhance Their Core Manufacturing Missions and Related Workforce 
Skills: 

The Army's three manufacturing arsenals have secured tenants that 
collectively address all but one of the purposes of the ASPI authority. 
According to the ASPI program manager, the remaining purpose to allow 
the operation of Army manufacturing arsenals to be rapidly responsive 
to the forces of free market competition is addressed by the site 
managers. Since the inception of the ASPI program, the site managers 
have secured contracts with 59 ASPI tenants. As of July 31, 2009, 
according to the Army, the ASPI program had 44 active tenants (27 at 
Rock Island, 16 at Watervliet, and 1 at Pine Bluff).[Footnote 12] The 
ASPI site managers have taken action to market this program and secure 
ASPI contracts with companies that address at least one of the purposes 
identified in the ASPI authority. Table 3 identifies the number of ASPI 
tenants at each arsenal addressing each of the ASPI purposes. Enclosure 
1 identifies the 44 current tenants and provides the ASPI program 
manager's assessment of all tenants against the 11 ASPI purposes. 

Table 3: Number of ASPI Tenants at Each Arsenal Addressing Each of the 
ASPI Purposes (by Arsenal): 

ASPI purposes: 1; To provide for the utilization of the existing 
skilled workforce at the Army manufacturing arsenals by commercial 
firms; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 0; 
Watervliet: 1; 
Pine Bluff: 0. 

ASPI purposes: 2; To provide for the reemployment and retraining of 
skilled workers who, as a result of declining workload and reduced Army 
spending on arsenal production requirements at these Army arsenals, are 
idled or underemployed; 
Rock Island: 3; 
Watervliet: 1; 
Pine Bluff: 0. 

ASPI purposes: 3; To encourage commercial firms, to the maximum extent 
practicable, to use these Army arsenals for commercial purposes; 
Number of ASPI tenants addressing each of the ASPI purposes:
Rock Island: 26; 
Watervliet: 15; 
Pine Bluff: 1. 

ASPI purposes: 4; To increase the opportunities for small businesses 
(including socially and economically disadvantaged small business 
concerns and new small businesses) to use these Army arsenals for those 
purposes; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 0; 
Watervliet: 1; 
Pine Bluff: 1. 

ASPI purposes: 5; To maintain in the United States a work force having 
the skills in manufacturing processes that are necessary to meet 
industrial emergency planned requirements for national security 
purposes; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 1; 
Watervliet: 1; 
Pine Bluff: 0. 

ASPI purposes: 6; To demonstrate innovative business practices, to 
support Department of Defense acquisition reform, and to serve as both 
a model and a laboratory for future defense conversion initiatives of 
the Department of Defense; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 5; 
Watervliet: 11; 
Pine Bluff: 1. 

ASPI purposes: 7; To the maximum extent practicable, to allow the 
operation of these Army arsenals to be rapidly responsive to the forces 
of free market competition; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 0[A]; 
Watervliet: 0[A]; 
Pine Bluff: 0[A]. 

ASPI purposes: 8; To reduce or eliminate the cost of government 
ownership of these Army arsenals, including the costs of operations and 
maintenance, the costs of environmental remediation, and other costs; 
Number of ASPI tenants addressing each of the ASPI purposes:
Rock Island: 27; 
Watervliet: 16; 
Pine Bluff: 1. 

ASPI purposes: 9; To reduce the cost of products of the Department of 
Defense produced at these Army arsenals; 
Number of ASPI tenants addressing each of the ASPI purposes:
Rock Island: 27; 
Watervliet: 16; 
Pine Bluff: 1. 

ASPI purposes: 10; To leverage private investment at these Army 
arsenals through long-term facility use contracts, property management 
contracts, leases, or other agreements that support and advance the 
demonstration program for the following activities: (A) 
recapitalization of plant and equipment; (B) environmental remediation; 
(C) promotion of commercial business ventures; and (D) other activities 
approved by the Secretary of the Army; 
Number of ASPI tenants addressing each of the ASPI purposes: 
Rock Island: 1; 
Watervliet: 3 
Pine Bluff: 0. 

ASPI purposes: 11; To foster cooperation between the Department of the 
Army, property managers, commercial interests, and state and local 
agencies in the implementation of sustainable development strategies 
and investment in these Army arsenals; 
Number of ASPI tenants addressing each of the ASPI purposes:
Rock Island: 6; 
Watervliet: 10; 
Pine Bluff: 1. 

Source: GAO analysis of Army data. 

[A] According to the ASPI program manager, only the site managers 
address purpose number 7, and they indirectly address each of the 
remaining ASPI purposes. Pine Bluff does not have a site manager. 

Note: A tenant may address 1 or more of the 11 ASPI purposes. 

[End of table] 

According to the ASPI program manager and the site managers for Rock 
Island and Watervliet, attracting commercial companies as ASPI tenants 
has assisted in the economic development of surrounding communities by 
providing employment opportunities. For example, AmCad Digital 
Conversion, a commercial Rock Island tenant that specializes in the 
preservation and conversion of public records, employs nearly 200 
people from the surrounding Rock Island region. Additionally, 
Watervliet tenants Extreme Molding and Solid Sealing Technologies 
manufacture lightweight composite materials for medical equipment and 
commercial use, respectively, and employ approximately 40 people 
combined. Other Watervliet tenants, M&W Zander and VISTEC Lithography, 
are high-tech engineering and manufacturing companies that together 
employ almost 60 people in the Albany, New York area. In June 2009 
VISTEC Lithography, which manufactures semiconductors and microchip 
nanotechnology, sold its first advanced electron beam lithography tool 
that was fully constructed at its Watervliet facility to the U.S. Army 
Research Laboratory in Maryland for advanced research and development 
of military devices and applications that will help enhance our 
national security. 

However, the arsenals have had limited success in securing ASPI tenants 
that enhance the arsenals' core manufacturing missions and related 
workforce skills. Although each of the Army's 44 tenants are generating 
revenue for the arsenals, the Army has determined that only 4 of these 
tenants address the purposes that enhance the arsenals' core missions 
or related workforce skills. As such, ASPI site managers have been more 
successful at securing commercial tenants needing administrative office 
space, which tends to be more profitable, than they have been in 
leasing manufacturing space. For example, at Rock Island, for fiscal 
year 2008, the rate charged for administrative space was $9.50 per 
square foot, whereas the rate charged for manufacturing space was $4.00 
per square foot. According to the Rock Island and Watervliet site 
managers who are responsible for marketing the ASPI program, the 
reduced profits received from charging lower rental rates to 
manufacturing-related companies is one of the reasons why they have 
focused on recruiting commercial companies in need of administrative 
space. Additionally, prior to the conferees on the National Defense 
Authorization Act for Fiscal Year 2008 voicing concerns regarding the 
small number of ASPI tenants supporting the arsenals' core 
manufacturing missions or workforce skills, these officials thought 
that their strategy made good business sense because they were 
generating revenue from their tenants and were still addressing the 
purposes of the program. Furthermore, the site managers told us that 
the recent economic slowdown has caused a decline in the growth of many 
companies in the manufacturing industry, which has made it more 
difficult for them to attract such companies to participate in the ASPI 
program. 

Although Rock Island had three ASPI tenants that supported its core 
manufacturing mission and had recently signed notices of intent with 
two additional firms that are expected to enhance the core mission and 
workforce skills at the arsenal, all but one of the tenants at 
Watervliet were engaged in businesses that were unrelated to that 
arsenal's core manufacturing mission. Pine Bluff only has one ASPI 
tenant and this tenant indirectly supports the mission of the arsenal. 

Rock Island Arsenal: 

Rock Island Arsenal had 27 ASPI tenants at the time of our review, but 
only 3 of those tenants support its core mission. For example, 2 of the 
tenants provide training to the Rock Island workforce and another 
tenant is expected to provide high-tech services to Rock Island. During 
the course of this review, we found that during the early years of the 
ASPI program, the leadership of the Rock Island-Joint Manufacturing and 
Technology Center, which has responsibility for the manufacturing 
mission on the arsenal, was concerned that potential ASPI manufacturing 
tenants might compete with, rather than complement, the arsenal's core 
manufacturing mission. Hence, the Rock Island site manager was 
encouraged not to pursue potential manufacturing tenants and no 
manufacturing space was made available to lease to potential tenants. 
However, the current Rock Island Joint Manufacturing and Technology 
Center leadership is working closely with the Rock Island ASPI site 
manager to increase efforts to recruit tenants that could help enhance 
its core manufacturing mission or the manufacturing skills of the 
arsenal workforce. 

The Rock Island site manager, in conjunction with the Rock Island-Joint 
Manufacturing and Technology Center, recently signed notices of intent 
under the ASPI program to lease space to two additional firms that are 
expected to enhance the core mission and workforce skills at the 
arsenal. In February 2009, Rock Island signed a notice of intent to 
partner with British Aerospace and Engineering Systems--a global 
company engaged in the development, delivery, and support of advanced 
defense, security, and aerospace systems--to establish a manufacturing 
center for consolidation of composite armor, which according to arsenal 
officials could lead to a new line of business for them. Under this 
public-private partnership agreement, the company would be expected to 
provide the technical and management oversight of the work, using 
approximately four to six of its own employees, and the Rock Island- 
Joint Manufacturing and Technology Center plans to provide available 
space and infrastructure, in addition to purchasing an autoclave and/or 
press system to perform the consolidation process. The Rock Island- 
Joint Manufacturing and Technology Center also plans to provide the 
skilled labor required to operate the autoclave and/or press system, 
handle raw materials, and perform other manufacturing needs. Also, in 
August 2008, the Rock Island-Joint Manufacturing and Technology Center 
signed a notice of intent to partner with the Quad Cities Manufacturing 
Laboratory, an Illinois-based manufacturing firm, to develop titanium 
and composite manufacturing capabilities. Under this partnership 
agreement, the Quad Cities Manufacturing Laboratory is expected to 
provide overall project management and engineering services and the 
Rock Island-Joint Manufacturing and Technology Center would provide 
skilled workers for the project, including laser cutting, casting, 
machining, and welding; and engineering, prototype, and testing 
support. Although ASPI funds were being used to renovate the space 
needed to accommodate these two new manufacturing tenants, during the 
time of this review, Rock Island was still in the process of finalizing 
the contracts with these ASPI tenants. 

Watervliet Arsenal: 

At the time of our review, Watervliet had 16 ASPI tenants under 
contract; however, Hartchrom, Inc., which conducts chrome plating and 
surface finishing for two types of cannons manufactured at Watervliet, 
was the ASPI program's only tenant that addressed the first purpose of 
the ASPI authority--to provide for the utilization of the existing 
skilled workforce. However, after the retirement of these former 
Watervliet employees that were hired by Hartchrom, the company has not 
employed any additional Watervliet personnel to supplement its 
workforce. Additionally, at the time of our review Hartchrom was 
negotiating with the ASPI site manager to expand the company's 
operations to another building on the arsenal where it plans to build a 
new metal processing facility that will recondition large texture die 
plates on a production line basis for one of its commercial partners. 
Hartchrom also asked Watervliet to work with them on the installation 
of a chrome plating facility at the arsenal. Under Hartchrom's 
proposal, their company would provide the conceptual drawings, conduct 
design reviews and final approval of all drawings, provide 
documentation and software, and handle all procurements and contracts 
for services. Watervliet would complete the design work suitable for 
the manufacturing or the various items and the subsequent installation 
as well as provide project management and manufacturing support. 
However, according to a Watervliet official, the arsenal was not in a 
position to perform design or manufacturing labor for the new facility 
due to the overall increase in Watervliet's workload and lack of people 
resources to support Hartchrom. In addition, the Watervliet site 
manager was also considering a proposal from another current ASPI 
tenant, M&W Zander, Inc., to expand its operations in the same space 
that Hartchrom was seeking. M&W Zander, Inc. is an architecture, 
engineering, and construction firm for high-tech companies, such as 
VISTEC Lithography. According to the Watervliet site manager, it is not 
uncommon for tenants to compete over the limited space at the arsenal 
and consideration is given to the overall benefit the Army and the 
arsenal will receive. Furthermore, the site manager stated that there 
is space available within the building for the expanded services of 
both ASPI tenants. Nevertheless, although the current and previous 
Watervliet Commanders believe that these high-tech ASPI tenants may 
offer some long-term benefits to the Army, they have expressed their 
concerns to the Watervliet site manager about the need to focus more on 
securing tenants that complement the arsenal's manufacturing mission. 

Pine Bluff Arsenal: 

Since the inception of ASPI in 2001, Pine Bluff Arsenal has secured one 
ASPI tenant. This tenant addresses six of the ASPI purposes. The 
tenant, Lindsey and Osborne, is a railroad and train company that 
specializes in managing box cars. Under its agreement with Pine Bluff, 
Lindsey and Osborne stores its trains and boxcars on the arsenal in 
exchange for repairing the railroad tracks leading into and out of the 
arsenal. Although the service provided by Lindsey and Osborne does not 
directly address any of the ASPI purposes related to enhancing the 
arsenal's core manufacturing mission or workforce skills, Pine Bluff 
officials told us that this tenant indirectly supports the core mission 
because, once Pine Bluff's railroad tracks are usable, the arsenal will 
be able to use trains to ship its products if other methods of 
transportation were unavailable. Pine Bluff officials also told us that 
they only pursue companies that would complement the arsenal's core 
mission and would not recruit companies for the sole purpose of 
receiving rent for underutilized facilities. Additionally, according to 
Pine Bluff officials, their participation in the ASPI program is 
limited because they have few underutilized facilities, if any, that 
are suitable for commercial tenants. 

The Army Has Not Determined Its Highest Priorities for ASPI or 
Developed a Strategy That Includes Performance Goals, and Its Ability 
to Measure Progress Is Limited: 

Although the tenants that have been secured for the ASPI program have 
generated revenue for the arsenals, program and site managers have 
generally been free to implement the ASPI program using varied 
approaches because the Army Materiel Command has provided only limited 
guidance that does not clearly articulate the Army's priorities for the 
program or performance goals and measures. In response to congressional 
committee and staff direction, the Army Materiel Command directed the 
ASPI program manager to give greater weight to the law's first 2 
purposes--utilizing the existing skilled workforce and reemploying or 
retraining skilled workers--in the selection process for acquiring new 
tenants to occupy underutilized space. Rock Island and Watervliet site 
managers stated that the surge in the arsenals' workload requirements 
to meet the demands of existing wartime conditions may have decreased 
the immediate need for the implementation of the first 2 purposes of 
the ASPI authority. However, to the extent that the Army can use the 
ASPI program to attract tenants that have the capability to utilize the 
arsenal's existing skilled workforce, it may help in alleviating the 
arsenals' past experiences of significant reductions in workload and 
retention of critical skills when overseas military operations begin to 
decline. Partnering with such tenants could also help provide long-term 
stability to a critical component of DOD's war fighting capability. 
Furthermore, this strategy would be aligned with the congressional 
defense committees expressed expectation that DOD show progress in the 
selection and execution of projects that enhance the arsenals' core 
missions and related workforce skills. 

According to the Watervliet's site manager, Watervliet often does not 
have resources available for added private sector opportunities, as was 
the case with the proposed partnership with Hartchrom to conduct the 
design work and manufacturing labor for the installation of a new 
chrome plating facility in support on one of Hartchrom's commercial 
partners. Nevertheless, the Army has missed an opportunity to ensure 
that the execution of the ASPI program is aligned with its own 
priorities, given the discretion afforded by the ASPI authority. The 
ASPI authority does not prioritize its 11 purposes, and it does not 
require that arsenal tenants--individually or collectively--address all 
11 purposes identified in the authority. Neither does the authority 
preclude the Army from issuing implementing guidance identifying its 
own priorities for the program. Our work on high-performing 
organizations has indicated that successful programs should articulate 
a clear mission and communicate that mission to their stakeholders as a 
way of encouraging higher performance.[Footnote 13] For example, if the 
Army wishes to encourage program managers to recruit more tenants that 
enhance the arsenals' core mission and workforce skills, it could place 
a higher priority on the related ASPI purposes. Furthermore, although 
the program and site managers have acted within the law to attract 
tenants that address the ASPI purposes and have generated revenue 
through leases with these tenants, the Army has not developed an 
overall strategy that includes the steps needed to achieve its desired 
results or ways to measure progress. In our prior work on national 
strategies we have determined that establishing priorities is only part 
of a process that, to be effective, should be integrated into an 
overall strategy.[Footnote 14] Our work on results-oriented management 
has further shown that an effective strategy should describe the 
general methods an agency plans to use to accomplish its broad goals. 
[Footnote 15] It should also be flexible and adaptable, allowing 
agencies to respond to factors beyond their control that could affect 
their ability to achieve desired results. Although the ASPI program has 
helped to defray some of the operating costs for the arsenals and has 
provided some economic benefits to local communities, until the Army 
distinguishes its highest priorities from among the ASPI purposes--as 
part of an overall strategy that encourages site managers to focus on 
the Army's priorities while maintaining the flexibility to address 
subsequent priorities in the cases where higher level priorities can 
not be met--the ASPI program will continue to lack clear Army 
direction. 

In addition, strategies should include performance goals that address 
what the strategy is trying to achieve and performance measures to 
gauge results.[Footnote 16] While the Army has adopted the 11 ASPI 
purposes as its broad goals for the program, the ASPI purposes are not 
easily measurable in a way that would enable the Army to measure how 
effective the program has been at ensuring that its priorities are 
being met. Performance goals, which are derived from broad goals like 
the ASPI purposes, establish intended performance and focus on 
quantifiable results. Performance goals should be accompanied by 
results-oriented performance measures that provide a specific means of 
gauging performance. Performance measures should include a baseline and 
a target; should be objective, measurable, and quantifiable; and should 
include a time frame. However, the Army's ability to measure program 
performance is limited because it has yet to develop these tools for 
the ASPI program. Moreover, the conferees on the National Defense 
Authorization Act for Fiscal Year 2008 expressed their expectations for 
ASPI implementation by stating that the Army should show progress in 
selecting tenants that enhance the arsenals' core missions and related 
workforce skills and contribute to the recapitalization of plants and 
equipment. The Army has established two metrics to evaluate the ASPI 
program, including the number of ASPI contracts secured and cost 
savings or cost avoidance to the Army. However, these limited metrics 
do not measure the extent to which the program is making progress 
toward achieving the broad goals represented by the purposes 
established in the ASPI authority. Together, performance goals and 
performance measures can assist DOD and Congress to measure progress 
and determine whether programs are achieving their desired results. 
Without performance goals for the ASPI program and outcome-focused 
performance measures with which the Army can conduct a comprehensive 
assessment of the program's progress, ASPI program and site managers 
are likely to continue to face difficulties balancing competing 
priorities, and the Army may be unable to demonstrate that the program 
is moving toward addressing congressional expectations. 

Conclusions: 

If the Army views its manufacturing arsenals, along with their core 
manufacturing missions and workforce skills, as vital to its ability to 
respond when needed to national defense contingencies or other 
emergencies, it is important that the Army articulate its priorities 
for the ASPI program. Although it may be important to allow some 
flexibility in how site managers implement the program, until the Army 
establishes clear overall priorities for the program, instead of 
continuing to allow implementation of ASPI to vary depending upon the 
incentives and desired outcomes of local leadership and site managers, 
the arsenals may continue to attract tenants who do not support their 
core manufacturing missions. Furthermore, until the Army establishes 
quantifiable goals and outcome-focused performance measures with which 
to assess progress toward addressing the ASPI purposes, the Army's 
ability to track progress toward achieving broad goals such as 
utilizing the arsenals' existing skilled workforce and reemploying and 
retraining skilled workers will be limited. Moreover, improved Army 
management of the ASPI program's performance will assist Congress to 
make informed decisions regarding reauthorization and funding of the 
ASPI program. 

Recommendations: 

In order to improve the execution of the ASPI authority and ensure that 
the program addresses the goals of both the Army and Congress, we 
recommend that the Secretary of the Army direct the Commanding General 
of the Army Materiel Command to: 

* distinguish the Army's highest priorities from among the ASPI 
purposes as part of an overall strategy to achieve its desired results, 
while maintaining the flexibility to address lower-level priorities in 
cases where the highest-level priorities can not be met due to external 
factors; 

* establish performance goals for the ASPI program; and: 

* establish outcome-focused performance measures to assess the progress 
the Army has made toward addressing the ASPI purposes, including 
securing tenants that could utilize any existing skilled workforce and 
provide for the reemployment and retraining of skilled manufacturing 
workers. 

Agency Comments and Third Party Views: 

We provided DOD with a draft of this report for comment on September 1, 
2009, but received no comments. We also provided the draft report to 
the ASPI site managers for the Rock Island and Watervliet arsenals and 
incorporated their comments as appropriate into this report. 

We are sending copies of this report to other congressional committees, 
members, and other interested parties. We are also sending copies to 
the Secretaries of Defense and the Army as well as the Director, Office 
of Management and Budget. Copies will be made available to others upon 
request. In addition, this report will be available at no charge on our 
Web site at [hyperlink, http://www.gao.gov]. If you or your staff have 
any questions about this report, please contact me at (202) 512-4523 or 
leporeb@gao.gov. Contact points for our Offices of Congressional 
Relations and Public Affairs may be found on the last page of this 
report. GAO staff who made key contributions to this report are listed 
in enclosure 3. 

Signed by: 

Brian J. Lepore, Director: 
Defense Capabilities and Management: 

[End of section] 

Enclosure 1: 

Table 3: The Army's Assessment of ASPI Tenants Against the 11 Purposes 
of ASPI,[A] as of July 31, 2009: 

Tenant: 5-T Office Services; 
Arsenal[B]: RIA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: AKIMA Logistics; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Alliant Techsystems; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty];
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: AmCad[®]; 
Arsenal[B]: RIA; 
Number of employees: 199; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: ARC Business Supply; 
Arsenal[B]: RIA; 
Number of employees: 9; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: ARMTEC; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Black Consulting; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Black Hawk College; 
Arsenal[B]: RIA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Empty]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Check]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Booz Allen Hamilton; 
Arsenal[B]: RIA; 
Number of employees: 3; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Center for Economic Growth; 
Arsenal[B]: WVA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Chemcept; 
Arsenal[B]: WVA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: City of Watervliet; 
Arsenal[B]: WVA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: CORE BTS; 
Arsenal[B]: WVA; 
Number of employees: 8; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Day & Zimmerman; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: DynCorp; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Efficiency Partners; 
Arsenal[B]: WVA; 
Number of employees: 6; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: ENSCO - ENDATAT, Inc.; 
Arsenal[B]: WVA; 
Number of employees: 5; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Evident Technologies; 
Arsenal[B]: WVA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Extreme Molding, LLC; 
Arsenal[B]: WVA; 
Number of employees: 23; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Check]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Flint Cliffs Manufacturing; 
Arsenal[B]: RIA; 
Number of employees: 6; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Genesis Health Care Group; 
Arsenal[B]: RIA; 
Number of employees: 14; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Hancock Management; 
Arsenal[B]: RIA; 
Number of employees: 20; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Hartchrom; 
Arsenal[B]: WVA; 
Number of employees: 16; 
ASPI purposes fulfilled by each tenant: 1: [Check]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Check]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Homeland Security Training Center; 
Arsenal[B]: RIA; 
Number of employees: N/A; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: IITI - Iowa Illinois Taylor Inc; 
Arsenal[B]: RIA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Kellogg Brown and Root; 
Arsenal[B]: RIA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Lean Flame; 
Arsenal[B]: WVA; 
Number of employees: 1; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Empty]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Lindsey & Osborne; 
Arsenal[B]: PBA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Check]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: M & W Zander; 
Arsenal[B]: WVA; 
Number of employees: 24; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: ManTech International Corporation Corp HQ; 
Arsenal[B]: RIA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Modular Furniture Services; 
Arsenal[B]: RIA; 
Number of employees: 6; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Onsite Health; 
Arsenal[B]: WVA; 
Number of employees: 5; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: OSVETS; 
Arsenal[B]: RIA; 
Number of employees: 3; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: PB Nammo; 
Arsenal[B]: RIA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Pendulum Service; 
Arsenal[B]: RIA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: RCH LLC; 
Arsenal[B]: RIA; 
Number of employees: 6; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Russell Construction; 
Arsenal[B]: RIA; 
Number of employees: 3; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: SERCO; 
Arsenal[B]: RIA; 
Number of employees: 15; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: SIVYER Steel; 
Arsenal[B]: RIA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Solid Sealing Technologies; 
Arsenal[B]: WVA; 
Number of employees: 17; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: Strategic Response Initiatives; 
Arsenal[B]: WVA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: THOTH Solution; 
Arsenal[B]: RIA; 
Number of employees: 7; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: TNS Payment Solutions; 
Arsenal[B]: WVA; 
Number of employees: 12; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Empty]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Empty]; 
ASPI purposes fulfilled by each tenant: 11: [Empty]. 

Tenant: VISTEC Lithography; 
Arsenal[B]: WVA; 
Number of employees: 34; 
ASPI purposes fulfilled by each tenant: 1: [Empty]; 
ASPI purposes fulfilled by each tenant: 2: [Empty]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Empty]; 
ASPI purposes fulfilled by each tenant: 5: [Empty]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Empty]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Arsenal site managers: 

Tenant: Arsenal Business & Technology Partnership; 
Arsenal[B]: WVA; 
Number of employees: 4; 
ASPI purposes fulfilled by each tenant: 1: [Check]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Check]; 
ASPI purposes fulfilled by each tenant: 5: [Check]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Check]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Tenant: Rock Island Arsenal Development Group; 
Arsenal[B]: RIA; 
Number of employees: 2; 
ASPI purposes fulfilled by each tenant: 1: [Check]; 
ASPI purposes fulfilled by each tenant: 2: [Check]; 
ASPI purposes fulfilled by each tenant: 3: [Check]; 
ASPI purposes fulfilled by each tenant: 4: [Check]; 
ASPI purposes fulfilled by each tenant: 5: [Check]; 
ASPI purposes fulfilled by each tenant: 6: [Check]; 
ASPI purposes fulfilled by each tenant: 7: [Check]; 
ASPI purposes fulfilled by each tenant: 8: [Check]; 
ASPI purposes fulfilled by each tenant: 9: [Check]; 
ASPI purposes fulfilled by each tenant: 10: [Check]; 
ASPI purposes fulfilled by each tenant: 11: [Check]. 

Source: ASPI Program Manager. 

11 Purposes of the ASPI Authority (abbreviated): 

1. Provide for the utilization of existing skilled work force: 

2. Provide for the reemployment and retraining of skilled workers: 

3. Encourage commercial firms to use Army manufacturing arsenals: 

4. Increase the opportunities for small businesses to use Army 
manufacturing arsenals: 

5. Maintain work force skills in manufacturing processes: 

6. Demonstrate innovative business practices, to support DOD 
acquisition reform, and to serve as both a model and a lab for future 
defense conversion initiatives of the DOD: 

7. Allow the operation of Army manufacturing arsenals to be rapidly 
responsive to the forces of free market competition: 

8. Reduce or eliminate cost of government ownership: 

9. Reduce the cost of products: 

10. Leverage private investment through long-term facility use 
contracts, property management contracts, leases or other agreements 
that support and advance the following activities: (A) recapitalization 
of plant and equipment; (B) environmental remediation; (C) promotion of 
commercial business ventures; and (D) other activities approved by the 
Secretary of the Army. 

11. Foster cooperation between the Department of the Army, property 
managers, commercial interests and State and local agencies. 

[End of table] 

[End of section] 

Enclosure 2: 

Additional Statutory Authorities That the Army Uses or Could Use to 
Help Improve the Viability of the Army's Manufacturing Arsenals: 

Although our work focused on the Army's implementation of the Arsenal 
Support Program Initiative (ASPI) program, there are several 
authorities, other than ASPI, that the Army uses or could use to help 
improve the viability of the Army's manufacturing arsenals. These 
include section 4532 of Title 10 U.S. Code, commonly referred to as the 
Army Arsenal Act, and other statutes that authorize the establishment 
of public-private partnerships, including direct sales, research and 
development, and facilities use agreements, such as enhanced-use 
leases. However, some of these authorities have provisions that limit 
their usefulness to the manufacturing arsenals. 

The Army Arsenal Act: 

Section 4532 of Title 10, commonly referred to as the Army Arsenal Act, 
states that the Secretary of the Army "shall have supplies needed for 
the Department of the Army made in factories or arsenals owned by the 
United States," when it is economical to do so. Under its implementing 
guidance for the Army Arsenal Act, when determining whether supplies 
can be economically obtained from government-owned facilities, the Army 
assesses the government's manufacturing costs and compares them to the 
costs of buying from the private sector--a process commonly referred to 
as the "make or buy" analysis. Army Regulation 700-90 provides guidance 
for the management of the Army industrial base for weapon system 
acquisition and encourages the "make or buy" analysis of the Army 
Arsenal Act on a case-by-case basis to determine whether to have 
government entities or private firms provide needed supplies. According 
to Rock Island Arsenal and Watervliet Arsenal officials, although the 
intent of the Army Arsenal Act is to make the Army manufacturing 
arsenals the first choice in providing Army core mission products--such 
as gun mounts, recoils, munitions, mortars, and cannons--it has not 
been effectively utilized due to a provision within an Army regulation 
[Footnote 17] that encourages program managers to purchase items from 
the private sector. 

Public-Private Partnerships: 

According to Army Materiel Command officials, a public-private 
partnership is an agreement between an Army-owned and operated facility 
and one or more private enterprises to perform work or utilize the 
Army's facilities and equipment. Some partnerships have been 
established by contract under statutory authority and some are 
arrangements pursuant to memorandums of agreement or other 
noncontractual agreements. These partnerships can range from joint 
public-private undertakings to private sector participation in some 
aspect of DOD production to direct sales of articles or services to the 
private sector. Although public-private partnerships have flexible 
characteristics, the key element in each partnering arrangement is the 
use of some aspect of DOD's industrial base capability to support the 
partnerships. 

There are a number of authorities that the Army may use to establish 
public-private partnerships, and any single partnership may cite more 
than one authority. For the manufacturing arsenals, these authorities 
can be divided into three categories: (1) direct sales statutes, (2) 
research and development statutes, and (3) facilities use statutes. 
According to Rock Island and Watervliet officials, they have made 
efforts to utilize the entire legislative and partnering toolbox 
available to them, where applicable. Each arsenal also reported having 
difficulties in developing partnerships because of limitations 
involving some of the authorities. Table 5 summarizes some of the 
principal statutory and regulatory authorities, other than ASPI, that 
are available to the Army's manufacturing arsenals for establishing 
partnering arrangements. 

Table 4: Summary of Principal Authorities, Other Than ASPI, Available 
to Army Manufacturing Arsenals for Establishing Partnering 
Arrangements: 

Direct Sales Statutes - Contractual and Cooperative Agreements: 

10 U.S.C. § 2208(j) permits the Secretary of a military department to 
authorize an industrial facility financed through working capital funds 
to sell articles and manufacturing, remanufacturing, and engineering 
services outside DOD if the purchaser is fulfilling a DOD contract or 
subcontract and the solicitation for the contract or subcontract is 
open to public private competition; or if the Secretary would advance 
the objectives of 10 U.S.C. § 2474(b) (2) by authorizing the facility 
to do so. The Secretary of Defense may waive these conditions for a 
particular sale under certain circumstances. Under regulations 
prescribed in accordance with 10 U.S.C. § 2208(h), these articles or 
services may be sold to a contractor for use in performing DOD 
contracts. 

10 U.S.C. § 2474 requires the Secretaries of the military departments 
(or the Secretary of Defense in the case of defense agencies) to 
designate depot-level maintenance activities (other than facilities 
approved for BRAC) as Centers of Industrial and Technical Excellence 
(CITE), permits the Secretaries to authorize and encourage public- 
private partnerships at CITES to provide for the performance of work 
related to depot-level maintenance core competencies and private sector 
use of facilities and equipment not fully utilized by DOD, and permits 
amounts received by the CITE for work performed under a public-private 
partnerships to be credited to the appropriation or fund that incurs 
the cost of performing the work. 

10 U.S.C. § 4544 authorizes Army working-capital-funded industrial 
facilities to enter into a contract or other cooperative arrangement 
with a non-Army entity to carry out a variety of specified activities, 
including the sale of articles or services to persons outside the Army, 
the performance of work by a non-Army entity at the facility, the 
sharing of work, or the lease or use of the Army facilities or 
equipment. Cooperative arrangements cannot exceed 5years, unless 
specifically authorized by law, and are subject to several conditions, 
including: work must be substantially performed by the government 
facility, must not interfere with the DOD work or military mission of 
the facility, and the non-Army entity must indemnify the United States 
from any claim for damages or injury arising out of this arrangement, 
except for government misconduct or gross negligence. The proceeds of 
sales are credited to the working capital fund that incurs work under 
this authority, and this authority may be used to enter into not more 
than eight contracts or cooperative agreements. This authority is 
scheduled to expire on September 30, 2014. 

22 U.S.C. § 2770 allows the President to sell defense articles and 
services to a U.S. company for incorporation into end items (and for 
concurrent or follow-on support) to be sold by such company either on a 
direct commercial basis to a friendly foreign country pursuant to a 
specified export license or approval, or in the case of specified 
ammunition parts, using commercial practices which restrict actual 
delivery directly to a friendly foreign country or international 
organization under specific conditions. 

Research and Development Statutes: 

10 U.S.C. § 2539b authorizes the Secretary of Defense and the 
Secretaries of the military departments, under prescribed regulations, 
to sell, rent, loan, or give samples, drawings, and manufacturing or 
other information, or sell, rent, or loan government equipment or 
materials, or make available for a fee the services of any government 
laboratory, center, range, or other testing facility, to persons or 
entities, for varying purposes such as use on independent research and 
development projects or demonstrations to friendly foreign governments, 
subject to certain conditions. 

10 U.S.C. § 2358 authorizes the Secretary of Defense and the 
Secretaries of the military departments to perform research and 
development projects related to weapons systems and other military 
needs, or otherwise of potential interest to DOD, by contract, 
cooperative agreement, or grant, or by other specified means. 
Additional provisions applicable to cooperative agreements are provided 
in 10 U.S.C. § 2371 and § 2371a. 

15 U.S.C. § 3710a authorizes federal agencies to permit federal 
laboratories to enter Cooperative Research and Development Agreements 
(CRADAs) on behalf of the agency with various entities, consistent with 
the missions of the laboratory and subject to various conditions. 

Facilities Use Statutes: 

10 U.S.C. § 2667 allows leasing of nonexcess facilities and equipment 
for not more than 5 years unless it is determined that a longer lease 
would promote the national defense or be in the public interest, in 
accordance with specified rules and conditions. 

FAR Subpart 45.3 prescribes the policies and procedures for contractor 
use and rental of government property. 

FAR Subpart 45.4 prescribes the rules pertaining to the title to 
government-furnished property and the title to contractor-acquired 
property. For example, under fixed price type contracts, the contractor 
retains title to all property acquired by the contractor for use on the 
contract, except for property identified as a deliverable item. 

Source: DOD's 2008 Annual Report on Section 4544 of Title 10, Army 
Cooperative Activities Statute and GAO analysis. 

Note: The descriptions of these authorities are not intended to be 
exhaustive; rather, they describe particular aspects of the authorities 
pertinent to public-private partnerships at Army manufacturing 
arsenals. 

[End of table] 

Use and Limitations of Direct Sales Authorities: 

Prior to May 2009, Rock Island and Watervliet officials reported that 
only under direct sales statutory authority granted by section 2208 and 
section 4543 of Title 10 were they permitted to utilize their 
capabilities and workforce to support commercial ventures that are 
performing work on behalf of the Army. Watervliet reported having 
ongoing partnerships with two defense contractors under the direct 
sales authority of section 4543, for the manufacture of the 120mm M256 
cannon, mortar barrels, and the 81mm barrel assembly. Rock Island 
reported having ongoing partnerships with two defense contractors to 
conduct recoil durability tests for the Stryker and gun mount work 
under the direct sales authority of section 4543; and two recent 
partnerships being formed with British Aerospace and Engineering 
Systems and the Quad Cities Manufacturing Laboratory that were 
discussed earlier in this report. According to the Rock Island and 
Watervliet officials, the only limitation to these statutes is that 
section 4543 requires them to obtain certificates of noncommercial 
availability before they can sell their products or services to the 
private sector. 

According to Army officials, the fact that the direct sales authority 
of section 4544 does not require a certificate of noncommercial 
availability in order to enter into a partnership with private industry 
firms is a significant benefit of the statute; however, there are 
several provisions in this direct sales authority that limit its 
usefulness. Specifically, section 328 of the National Defense 
Authorization Act for Fiscal Year 2008 amended section 4544 of Title 10 
by limiting the number of partnering agreements allowed to eight and 
establishing an expiration date for the authority of September 30, 
2014--in addition to an already existing 5-year limit on multiyear 
contracts for cooperative arrangements. Because the legislation that 
initially authorized section 4544[Footnote 18] did not limit the number 
of partnerships that could be established, the Army had a total of 11 
partnerships when the fiscal year 2008 legislation was enacted. To 
comply with the statutory limitation of no more than eight contracts 
using this authority, the Army closed and suspended some contracts, 
converted contracts to other authorities, and issued a moratorium on 
creating new cooperative arrangements and partnerships under this 
authority. According to Rock Island and Watervliet officials, during 
this time period, they had partnering proposals that could not be 
finalized due to the limit of eight partnerships which were already 
dedicated to other Army industrial facilities and the Army's moratorium 
on new partnerships. At the time of our review, according to Army 
Materiel Command officials, the Command was in compliance with the 
limitation on the number of contracts allowed under section 4544 and 
was in the process of establishing a review panel to screen and 
recommend approval for future partnership proposals. Additionally, in 
the Army's Fiscal Year 2009 report to Congress on the use of the 
authority under section 4544, the Army reported that it would request 
in the Fiscal Year 2011 Legislative Change Proposal Cycle that section 
4544 be made permanent, the pending expiration of September 30, 2014, 
be lifted, and that the limitation on the number of contract or 
cooperation arrangements formed under this authority be removed. 

According to Rock Island and Watervliet officials, they have been 
limited in their use of section 2474 of Title 10 because this statute 
has traditionally been applied only to DOD depot-level maintenance 
activities. However, Pine Bluff was designated as a: 

Center of Industrial and Technical Excellence[Footnote 19] in September 
2005 for chemical and biological defense equipment and was thus 
authorized to form public-private partnerships under this authority. 
According to Pine Bluff officials, Pine Bluff subsequently entered into 
a public-private partnership for the rebuild of the M40 protective 
masks, a gas mask that protects soldiers on the battlefield from 
chemical and biological agents. Nonetheless, according to a senior Army 
Materiel Command official, Pine Bluff can not form similar partnerships 
for their ammunition and pyrotechnic production core competencies as 
they are not designated as a Center of Industrial and Technical 
Excellence for these competencies nor do they have documented depot- 
level maintenance work for these competencies. 

Such designations under section 2474 could better position the arsenals 
to form broad-based public-private partnerships with private entities, 
which could increase the workload of the Army's manufacturing arsenals. 
Since early 2008, according to Army Materiel Command officials, there 
have been discussions within the Army to propose amending section 2474 
to allow the organic industrial capabilities of any DOD facility, 
including DOD ammunition plants and arsenals, to be designated as 
Centers of Industrial and Technical Excellence in their core 
competencies, if depot-level maintenance work can be documented. To 
date, according to Army Materiel Command officials, the Army has not 
presented such a proposal to Congress for consideration but intends to 
do so in its Fiscal Year 2011 Legislative Change Proposal Cycle. 
However, in May 2009, the Secretary of the Army designated Rock Island 
as a Center of Industrial and Technical Excellence for the Army's 
Mobile Maintenance Systems, specifically the Forward Repair System and 
the Shop Equipment Contract Maintenance because of Rock Island-Joint 
Manufacturing and Technology Center's proven expertise in the overhaul 
of these systems. Although Rock Island's core mission capability for 
manufacturing weapons is not included in its Center of Industrial and 
Technical Excellence designation, both Army and Rock Island officials 
told us that they believe that this designation should allow for future 
partnership opportunities. Conversely, although Watervliet has 
performed the maintenance and overhaul of the reparable parts of some 
Army cannon components and is the sole manufacturer of these cannons, 
it has not been designated as a Center of Industrial and Technical 
Excellence. 

Use of Research and Development Authorities: 

Watervliet reported using the research and development statute--section 
3710a of Title 15, Cooperative Research and Development Agreements--to 
enter into a partnership with Benet Laboratories, in support of the 
design, prototype, and production of new technology for the Army's 
cannon and howitzer guided bore technologies, and fatigue and fracture 
analysis. Additionally, Rock Island partnered with Benet Laboratories 
to manufacture five gun mounts, other recoil parts, and perform recoil 
durability testing for the 120mm XM360 high performance gun assembly. 

Use and Limitations of Facilities Use Authorities: 

Watervliet has also established a partnership with Hartchrom, Inc., 
including a services contract under the Federal Acquisition Regulation 
that allows Hartchrom to utilize Watervliet plant facilities to apply 
chrome-plating and surface finishing to two cannon barrels manufactured 
by Watervliet. Additionally, Rock Island and Watervliet have utilized 
section 2667 of Title 10 to establish facilities use agreements with 
other DOD, federal, state, and private entities. Under this lease 
authority, the Secretaries of the military departments are generally 
authorized to lease nonexcess real property in exchange for cash or in- 
kind consideration not less than the fair market value of the lease 
interest whenever they consider it advantageous to the United States. 
In-kind consideration accepted with respect to a lease under this 
section can include construction of new facilities or maintenance of 
existing facilities. According to Rock Island and Watervliet officials, 
unlike ASPI, if lease agreements are established with commercial 
tenants under section 2667, the arsenals would need funding from the 
Army to renovate and configure unused space to meet the needs of any 
new tenants before the new tenants begin paying rent. In 2008, we 
reported[Footnote 20] that the Army utilizes this statute more than any 
other military department to execute short-term leases, lasting no more 
than 5 years, as well as longer term enhanced use leases, which usually 
span more than 30 years and typically involve in-kind payments. 
[Footnote 21] 

Rock Island officials stated that, although this statute is used to 
establish permits with other DOD agencies, and agreements and easements 
with some local, state, and private entities, only the lease for the 
Rock Island Arsenal Golf Club is expected to be an enhanced-use 
agreement for real property. According to these officials, the 
negotiations for this property have been ongoing for more than 4 years, 
and they expect it will take at least another year to complete. Both 
Rock Island and Watervliet officials told us that they believe enhanced-
use leases might not be effective in leasing space to commercial 
tenants who have an immediate need, due to the lengthy amount of time 
required to complete the enhanced-use lease process. 

In May 2008, the Secretary of the Army agreed to provide 57 acres of 
land on the Watervliet Arsenal, divided into 7 parcels, to the 
community for development under an enhanced-use leasing agreement. In 
December 2008, the Arsenal Business and Technology Partnership was 
selected as the developer. According to a Watervliet official, enhanced-
use leasing would require the developer to fully fund the cost of 
development and rent would be paid back to the government for use of 
the land. In April 2009, the Arsenal Business and Technology 
Partnership provided a draft of its Lease and Management Plan to the 
Corps of Engineers; and according to a Watervliet official, the Corps 
of Engineers expects to finalize the agreement for Watervliet by mid- 
year 2010. 

Leases executed pursuant to section 2667 not only benefit the 
installation by leveraging underutilized land in exchange for rent 
money or in-kind consideration, such as new construction or maintenance 
of existing facilities, they also benefit the developer and the 
community. For example, according to DOD officials, these projects can 
establish long-term relationships between developers and private sector 
and government entities with specific real estate needs that are 
potential occupants of the space. In addition, developers receive 
market rate returns on their investments and access to new markets, 
such as federal government and military support contractors. These 
agreements benefit the community by providing additional jobs, a 
broader tax base, and renovation of deteriorated assets. 

[End of section] 

Enclosure 3: 

GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Brian Lepore, (202) 512-4523 or leporeb@gao.gov: 

Acknowledgments: 

In addition to the person named above, James Reifsnyder, Assistant 
Director; Aisha Cabrer; Susan Ditto; George Duncan; Jason Jackson; 
Gregory Marchand; Jacqueline McColl; Charles Perdue; and Greg Pugnetti 
made key contributions to this report. 

[End of section] 

Footnotes: 

[1] Pub.L. No. 106-398, § 343 (2001). 

[2] TACOM is now the official command name for the organization 
formerly known as the Army's Tank-automotive and Armaments Command. 

[3] Pursuant to a 2005 base realignment and closure recommendation, the 
ASPI program office is scheduled to move to the TACOM Life Cycle 
Management Command in Warren, Michigan by September 2011. 

[4] Beginning in fiscal year 2006, Rock Island was split into two 
organizations--the Rock Island-Joint Manufacturing and Technology 
Center, which is responsible for the industrial manufacturing mission 
on the arsenal, and the U.S. Army Garrison-Rock Island, which provides 
facilities and base operations support and services to all installation 
tenants. ASPI projects may be within the industrial or garrison areas 
at Rock Island. 

[5] The ASPI authority directed the Army to submit a report assessing 
the implementation of ASPI to the congressional defense committees by 
no later than July 1, 2001. This report is not required on an annual 
basis. 

[6] Pub L. No. 110-181, § 341 (2008). 

[7] H.R. Conf. Rep. No. 110-477, at 881-882 (2007). 

[8] The 44 tenants we have identified do not include the site managers 
at Rock Island and Watervliet. 

[9] GAO, Military Transformation: Clear Leadership, Accountability, and 
Management Tools Are Needed to Enhance DOD's Efforts to Transform 
Military Capabilities, [hyperlink, 
http://www.gao.gov/products/GAO-05-70] (Washington, D.C.: December 
2004). 

[10] In 2005, the management of ASPI transferred to the TACOM Life 
Cycle Management Command, another Army Materiel Command major 
subordinate command. 

[11] Obligations are incurred through actions such as orders placed, 
contracts awarded, services received, or similar transactions. 
Obligations incurred during a given fiscal year may require payments 
during the same or a future year. 

[12] The 44 tenants we have identified do not include the site managers 
at Rock Island and Watervliet. 

[13] GAO, High-Performing Organizations: Metrics, Means, and Mechanisms 
for Achieving High-Performance in the 21ST Century Public Management 
Environment, [hyperlink, http://www.gao.gov/products/GAO-04-343SP] 
(Washington, D.C.: February 2004). 

[14] GAO, Combating Terrorism: Evaluation of Selected Characteristics 
in National Strategies Related to Terrorism, [hyperlink, 
http://www.gao.gov/products/GAO-04-408T] (Washington, 
D.C.: Feb. 3, 2004). 

[15] [hyperlink, http://www.gao.gov/products/GAO-05-70]. 

[16] [hyperlink, http://www.gao.gov/products/GAO-05-70]. 

[17] According to Army Regulation 700-90, Army Industrial Base Process 
(Dec. 14, 2004), the Army will rely on the private sector for support 
of defense production to the maximum extent practical. Government-owned 
facilities may be considered essential when no commercial producer can 
be induced to supply needed items, to ensure continued availability of 
important capabilities in time of national emergency, or government- 
owned facilities are more efficient or economical than private 
industry. 

[18] Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005, Pub. L. No. 108-375, § 353(2004). 

[19] A DOD Center of Industrial and Technical Excellence is a 
designation given to DOD depot-level maintenance activities by the 
Secretary of each military department based on the activities' core 
competencies. Based on section 2474 of Title 10, designated Centers of 
Excellence are authorized and encouraged to enter into public-private 
partnerships with private sector companies to perform work related to 
their core competencies. 

[20] GAO, Defense Infrastructure: Services' Use of Land Use Planning 
Authorities, [hyperlink, http://www.gao.gov/products/GAO-08-850] 
(Washington, D.C.: July 23, 2008). 

[21] Section 2667 of Title 10 does not use the term enhanced-use lease 
to differentiate leases executed pursuant to this authority that are 
longer than 30 years and involve in-kind payments. 

[End of section] 

GAO's Mission: 

The Government Accountability Office, the audit, evaluation and 
investigative arm of Congress, exists to support Congress in meeting 
its constitutional responsibilities and to help improve the performance 
and accountability of the federal government for the American people. 
GAO examines the use of public funds; evaluates federal programs and 
policies; and provides analyses, recommendations, and other assistance 
to help Congress make informed oversight, policy, and funding 
decisions. GAO's commitment to good government is reflected in its core 
values of accountability, integrity, and reliability. 

Obtaining Copies of GAO Reports and Testimony: 

The fastest and easiest way to obtain copies of GAO documents at no 
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each 
weekday, GAO posts newly released reports, testimony, and 
correspondence on its Web site. To have GAO e-mail you a list of newly 
posted products every afternoon, go to [hyperlink, http://www.gao.gov] 
and select "E-mail Updates." 

Order by Phone: 

The price of each GAO publication reflects GAO’s actual cost of
production and distribution and depends on the number of pages in the
publication and whether the publication is printed in color or black and
white. Pricing and ordering information is posted on GAO’s Web site, 
[hyperlink, http://www.gao.gov/ordering.htm]. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or
TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card,
MasterCard, Visa, check, or money order. Call for additional 
information. 

To Report Fraud, Waste, and Abuse in Federal Programs: 

Contact: 

Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]: 
E-mail: fraudnet@gao.gov: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Ralph Dawn, Managing Director, dawnr@gao.gov: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, youngc1@gao.gov: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: