Preliminary Findings on Federal Relocation Costs and Spectrum Auction Revenues

The Government Accountability Office was asked to review the costs to relocate federal spectrum users and revenues from spectrum auctions.

This testimony before the Senate Committee on Armed Services addresses GAO’s preliminary findings on
1) estimated and actual relocation costs and revenue from the previously auctioned 1710-1755 MHz band,
2) the extent to which DOD followed best practices to prepare its preliminary cost estimate for vacating the 1755-1850 MHz band, and
3) existing government or industry forecasts for revenue from an auction of the 1755-1850 MHz band.

GAO reviewed relevant reports; interviewed Department of Defense, Federal Communications Commission, National Telecommunications and Information Administration, and Office of Management and Budget officials and industry stakeholders; and analyzed the extent to which DOD's preliminary cost estimate met best practices identified in GAO's Cost Estimating and Assessment Guide (Cost Guide). DOD's preliminary cost estimate for relocating systems from the 1755-1850 MHz band substantially or partially met GAO's best practices, but changes in key assumptions may affect future costs. Adherence with GAO's Cost Guide helps to minimize the risk of cost overruns, missed deadlines, and unmet performance targets. GAO found that DOD's estimate substantially met the comprehensive and well-documented best practices.

[GAO-13-563T]