The state of  deterioration is alarming because of the magnitude of the repair backlog— current estimates show that tens of billions of dollars will be needed to  restore these assets and make them fully functional. We have also  reported extensively on the security problems and challenges at individual  real property-holding agencies. These factors  include competing stakeholder interests in real property decisions; various  legal and budget-related disincentives to businesslike outcomes; the need  for improved capital planning; and the lack of a strategic, governmentwide  focus on federal real property issues. Resolving the long-standing problems will require high-level  attention and effective leadership by Congress and the administration and  a governmentwide, strategic focus on real property issues. Also, it is  important that key stakeholders develop an effective system to measure  results. Real property problems related  to unneeded property and the need for realignment; deteriorating  conditions, unreliable data, costly space, and security concerns have  multibillion-dollar cost implications, and can seriously jeopardize mission  accomplishment. Because of the breadth and complexity of the issues  involved, the long-standing nature of the problems, and the intense debate  about potential solutions that will likely ensue, current structures and  processes may not be adequate to address the problems. Such a strategy, based on input from agencies, the  private sector, and other interested groups, could comprehensively  address these long-standing problems with specific proposals on how best  to  realign the federal infrastructure and dispose of unneeded property, taking  into account mission requirements, changes in technology, security needs,  costs, and how the government conducts business in the 21st century;   address the significant repair and restoration needs of the federal    ensure that reliable governmentwide and agency-specific real property  data—both financial and program related—are available for informed  decisionmaking; resolve the problem of heavy reliance on costly leasing; and   consider the impact that the threat of terrorism will have on real property  needs and challenges, including how to balance public access with safety. Congress and the administration could work together to develop  and enact reform legislation to give real property-holding agencies the  tools they need to achieve better outcomes, foster a more businesslike real  property environment, and provide for greater accountability for real  property stewardship.
Why GAO Did This Study

Long-standing problems with excess and underutilized real property, deteriorating facilities, unreliable real property data, and costly space challenges are shared by several agencies. These factors have multibillion-dollar cost implications and can seriously jeopardize agencies' missions. Federal agencies face many challenges securing real property due to the threat of terrorism. This testimony discusses long-standing, complex problems in the federal real property area and what actions are needed to address them.

What GAO Found

Over 30 agencies control hundreds of thousands of real property assets worldwide, including facilities and land, which are worth hundreds of billions of dollars. Unfortunately, much of this vast, valuable portfolio reflects an infrastructure based on the business model and technological environment of the 1950s. Many of the assets are no longer effectively aligned with, or responsive to, agencies' changing missions and are therefore no longer needed. Further, many assets are in an alarming state of deterioration; agencies have estimated restoration and repair needs to be in the tens of billions of dollars. Compounding these problems are the lack of reliable government-wide data for strategic asset management, a heavy reliance on costly leasing instead of ownership to meet new needs, and the cost and challenge of protecting these assets against potential terrorism. Resolving these problems will require high-level attention and effective leadership by both Congress and the administration. Also, because of then breadth and complexity of the issues, the long-standing nature of the problems, and the intense debate that will likely ensue, current structures and processes may not be adequate to address the problems. Thus, as we have reported, there is a need for a comprehensive, integrated transformation strategy for real property that will focus on some of the underlying causes that contribute to these problems, such as competing stakeholder interests in real property decisions; various legal and budget related disincentives to businesslike outcomes; inadequate capital planning and the lack of governmentwide focus on real property issues. It is equally important that Congress and the administration work together to develop and enact needed reform legislation to give real property-holding agencies the tools they need to achieve better outcomes. This would also foster a more businesslike real property environment and provide for greater accountability for real property stewardship.