DOD Urged to Enhance Oversight of Underutilized and Excess Facilities

The Government Accountability Office (GAO) has recommended that the Department of Defense (DOD) take additional steps to improve its management of underutilized and excess real property across its vast portfolio. The DOD, which oversees more than 700,000 facilities valued at approximately $2.2 trillion, has faced longstanding challenges in optimizing its real estate assets. The GAO found inconsistent and inaccurate reporting of facility utilization across military branches, hindering the department’s ability to make informed decisions about real property management.

The GAO’s review revealed discrepancies in how the Army, Navy, Marine Corps, and Air Force calculate and report utilization rates for facilities. For example, the Air Force uses a standardized methodology, while the Navy and Marine Corps apply average utilization rates across groups of facilities, potentially obscuring the status of individual properties. The Army reported only fully utilized or completely unused properties, contrary to DOD’s guidance for more precise utilization measurements. These inconsistencies prevent DOD from obtaining a clear and accurate picture of its real property portfolio, the GAO stated.

The report also highlighted challenges faced by installations in managing space effectively, including difficulties in demolishing outdated facilities and dealing with temporary structures. Some installations struggle to find adequate space for evolving mission requirements, leading to the extended use of relocatable buildings such as trailers. Additionally, aging and historic buildings remain in use at high maintenance costs, sometimes forcing installations to choose between needed repairs and demolition due to budget constraints.

To address these issues, the GAO issued five recommendations, urging the DOD to enforce its utilization guidance consistently, assess and manage real property risks, and hold military services accountable for adhering to these standards. The DOD generally agreed with the recommendations, though it partially concurred on proposals concerning the Navy and Marine Corps, suggesting a unified approach under the Navy’s guidance. The GAO maintained separate recommendations to align with standard reporting practices. By implementing these recommendations, the DOD could enhance the efficiency of its real property management, reduce unnecessary expenses, and better support its mission objectives.

Article by multiple RFHC contributors.

---