THE CURRENT BACKLOG OF FACILITY NEEDS OF DEFENSE RESERVE COMPONENTS IS ESTIMATED AT OVER $2 BILLION. HOWEVER, ABOUT 38 PERCENT OF THE 132 BACKLOG CONSTRUCTION PROJECTS REVIEWED WERE INVALID. UNLESS THE DEPARTMENT OF DEFENSE RESERVE IMPROVES ITS REVIEW PROCEDURES FOR RESERVE CONSTRUCTION PROJECTS, IT WILL FAIL TO PROVIDE THE KIND OF INFORMATION CONGRESS NEEDS TO MAKE SOUND DECISIONS ON AUTHORIZATION AND APPROPRIATION REQUESTS FOR RESERVE FACILITIES, AND IT WILL DECREASE THE LIKELIHOOD THAT FACILITY NEEDS WILL BE MET IN THE MOST COST-EFFECTIVE MANNER. REVIEW PROCEDURES SHOULD BE REVISED SO INVALID AND QUESTIONABLE PROJECTS CAN BE MORE EFFECTIVELY IDENTIFIED BEFORE SUBMITTING THEM TO THE CONGRESS. UNDERUSED AND VACANT FACILITIES AT RESERVE CENTERS, ACTIVE FORCE INSTALLATIONS, AND INSTALLATIONS BEING CLOSED SHOULD BE USED TO THE MAXIMUM EXTENT POSSIBLE. POLICIES SHOULD BE ADOPTED THAT ENCOURAGE USING AND SHARING ACTIVE FORCE FACILITIES UNDER AN APPROACH SIMILAR TO THE COAST GUARD'S AUGMENTATION CONCEPT. THE EFFECTIVENESS OF THE STATE RESERVE FACILITY BOARDS COULD BE ENHANCED BY ADDING A MEMBER TO EACH BOARD. RESERVE COMPONENT PROGRAM OFFICIALS SHOULD BE FORMALLY ASSIGNED THE TASKS OF IDENTIFYING ALTERNATIVE WAYS TO SATISFY SPECIFIC FACILITY REQUIREMENTS, MAKING THE ANALYSES NEEDED TO DETERMINE THE MOST COST-EFFECTIVE ALTERNATIVES, AND PRESENTING THIS INFORMATION TO THE STATE BOARDS FOR REVIEW. CONSOLIDATION OF EACH MILITARY DEPARTMENT'S RESERVE CONSTRUCTION APPROPRIATION SHOULD BE CONSIDERED, AND A MORATORIUM SHOULD BE IMPOSED ON THE CONSTRUCTION OF ARMORY AND RESERVE FACILITIES, FOR A SPECIFIED TIME, WITHIN 25 MILES OF COMPLETED ARMORY AND RESERVE FACILITIES FOR A SINGLE COMPONENT. THE RESERVE COMPONENTS GENERALLY AGREED WITH MOST OF THE RECOMMENDATIONS. (AUTHOR ABSTRACT MODIFIED--RCB)