CONGRESS OF THE UNITED STATES
CONGRESSIONAL BUDGET OFFICE
R E P O R T
An Analysis of the
Army’s Arsenal Support
Pub. No. 4024
R E P O R T
An Analysis of the Army’s
Arsenal Support Program Initiative
The Congress of the United States O Congressional Budget Office
The cover photograph, which depicts the testing of a new Vertical Heat Treatment Facility at
the Watervliet Arsenal in New York, is provided courtesy of the U.S. Army.
The Congress created the Arsenal Support Program Initiative (ASPI) to help maintain
the functional capabilities of the Army’s three manufacturing arsenals, which are located in
Rock Island, Illinois, Watervliet, New York, and Pine Bluff, Arkansas. A primary goal of the
program is to enable commercial firms to lease vacant space at the arsenals once that space
has been renovated, thereby encouraging collaboration between the Army and commercial
firms as well as reducing the costs the government incurs to operate and maintain the arsenal
facilities. Since the ASPI’s inception, a number of commercial tenants have leased unused
property at the arsenals; however, the financial benefits that the program has generated for the
government have proved to be small relative to the program’s funding.
In response to a directive from the Congress, the Congressional Budget Office (CBO)
conducted a “business case” analysis of the ASPI, examining the program’s costs, return on
investment, and economic impact. In keeping with CBO’s mandate to provide objective,
nonpartisan analysis, this report makes no recommendations.
Daniel Frisk of CBO’s National Security Division prepared the report under the
supervision of Matthew Goldberg. Alec Johnson assisted with fact checking the document.
Robert Dennis, Deborah Lucas, William Randolph, and Jason Wheelock of CBO provided
helpful comments, as did Larry Schwartz, an independent consultant. (The assistance of
external reviewers implies no responsibility for the final product, which r