Through base realignment and closure rounds in 1988, 1991, 1993, and 1995, the Department of Defense expected to significantly reduce its domestic infrastructure and provide needed dollars for high-priority programs such as modernization. With the conclusion of the 6-year implementation period of the last round in fiscal year 2001, the department has closed or realigned hundreds of bases, has generated savings from these actions, and is in the process of transferring unneeded base property to other users. At the same time, the communities surrounding the former defense bases continue the lengthy process of recovery from the economic impact of the closure process. Our last comprehensive report on the implementation of base closure decisions was issued in December 1998. In that report, we concluded that the closure process was generating substantial savings (although the savings estimates were imprecise), most former base property had not yet been transferred to other users, and most communities surrounding closed bases were faring well economically in relation to key national economic indicators. In a July 2001 report and August 2001 testimony, we updated our closure implementation data and reaffirmed the primary results of our prior work.