Funding site cleanup at closing Army installations : a stochastic optimization approach
Dell, Robert F.
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To reduce domestic military infrastructure, the United States enacted two laws that instituted rounds of base realignment and closure (BRAC) in 1988, 1991, 1993, and 1995. As a result of these BRAC rounds, the United States Army has closed or realigned 139 installations. Environmental cleanup is almost $2.3 billion (43%) of the entire cost associated with the closure and realignment of these 139 Army installations. The United States Army Base Realignment and Closure Office (BRACO) uses an integer linear program called BAEC (Budget Allocation for Environmental Cleanup) to help determine how to allocate limited yearly funding to installations for environmental cleanup. Considering environmental policies and yearly installation funding requests from 2002 to 2015, this thesis modifies BAEC to better account for uncertainty in future environmental cleanup cost estimates. Based on historic data that show most environmental cleanup cost estimates increase over time, the stochastic BAEC model recommends funding fewer sites than the deterministic BAEC model recommends. The stochastic BAEC model thereby provides funding recommendations with a better chance of staying within limited available yearly funding.
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