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WASHINGTON (Nov. 16, 2012) -- The U.S. Army will close its National Capital Region contracting center next year, the Army announced Nov. 16.

Army Contracting Command-National Capital Region, located in Alexandria, Va., will be closed July 20, 2013, and its workload distributed to other contracting centers operated by the U.S. Army Contracting Command.

The workload redistribution affects 260 civil service positions and six military positions. All ACC-NCR civil service employees will be offered their current position at the new locations. Soldiers will be reassigned through the military personnel system.

"This was a difficult decision," said Maj. Gen. Camille M. Nichols, commanding general, U.S. Army Contracting Command, headquartered at Redstone Arsenal, Ala. "But as good stewards of the taxpayers' money, we must make the most effective and efficient use of our resources, including our people. We have a position for all of our valued employees and will work diligently to make their transition to their new job locations as easy as possible."

High employee turnover and operating costs were the primary factors for closing the center and redistributing its workload to other ACC contracting organizations, according to Gene Duncan, acting chief, Operations Division, ACC Operations Group, and project officer for the transition. ACC-NCR employee turnover was more than 30 percent between Oct. 1, 2010 and June 30, 2012, compared to normal workforce attrition of between eight and 10 percent. By moving the organization from a highly competitive area, turnover will be reduced, the workforce will stabilize and the already strong customer service and contract quality will improve, he said.

The Army predicts the move will save about $13 million annually, once the transition is complete, through increased efficiencies, reduced facilities and information technology costs, reduced turnover and reduced locality pay as the positions are moved outside the National Capital Region.

ACC-NCR's workload will be distributed to ACC contracting centers at Rock Island Arsenal, Ill. (87 positions), Joint Base McGuire-Dix-Lakehurst, N.J. (79 positions), Warren, Mich. (10 positions), Aberdeen Proving Ground, Md. (32 positions), and Redstone Arsenal, Ala. (22 positions) as well as to the Mission and Installation Contracting Command offices at Fort Knox, Ky. (10 positions) and Joint Base San Antonio, Texas (12 positions). An element of 14 positions will remain in the National Capital Region at Fort Belvoir, Va., to handle support functions including customer support, coordination and Government Purchase Card oversight.

Employees will have until Jan. 8, 2013, to accept or decline the management-directed reassignment. Employees who decline transfer will be eligible to register in the Priority Placement Program, a Department of Defense system designed to help displaced employees. In addition, ACC will provide relocation and transition assistance. Employees may also be eligible for placement through the Interagency Career Transition Assistance Plan for positions outside the Department of Defense.

"There will be another option within ACC," Duncan said. "Under the ACC Command Assistance for Placing Employees Program, employees who decline the management-directed reassignment will have the opportunity to indicate interest in other ACC locations. Selecting officials will receive information regarding those employees' skills and certification levels. The gaining selecting official will make the selection. Employees selected under this program will receive travel orders and must report to the gaining location no later than July 20, 2013."

Army Contracting Command provides global contracting support to Soldiers through the full spectrum of military operations. ACC consists of about 6,800 civilians and Soldiers at more than 100 locations worldwide. In fiscal year 2012 ACC awarded and managed more than 228,000 contract actions valued at more than $74 billion.

In fiscal year 2012, ACC-NCR executed more than 4,600 contract actions valued at $1.84 billion.

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