	Background

Since 1993, GSA has built 79 new courthouses that replaced or  supplemented 66 old courthouses. In determining whether to retain an  old courthouse, GSA considers the building’s condition; its historic or  architectural significance; the judiciary’s interest in occupying the building;  local market conditions, such as prevailing lease rates for commercial  space; and the existing and projected base of other prospective federal  tenants within the area. Old Courthouses Have More Vacant Space and Many Do Not Cover Their Costs

Among the retained old courthouses we reviewed, excluding one building  that was under major renovation, about 14 percent of the total space  (nearly 1-million square feet) in them was vacant as of May 2013— significantly higher than the 4.8 percent overall vacant space among  federally-owned buildings in 2012. GSA officials told us that  replacing tenants in old courthouses can be challenging due to the  buildings’ condition and needed renovations, among other reasons, as  will be discussed later in this report. New Courthouse Proposals Did Not Consistently Address the Need for Old Courthouse Renovations

While old courthouses are often retained to meet federal space needs,  potential renovations key to re-using old courthouses are often not  included in GSA’s proposals to Congress for new courthouses. GSA is  not specifically required by statute to include plans for old courthouses in  its proposals to Congress for new buildings. However, GSA’s  proposals are required under statute to include, among other things, a  “comprehensive plan” to, in general, provide space for all federal  employees in the locality of a proposed new building “having due regard”  for suitable space that may continue to be available in nearby existing  government buildings. In addition, OMB and we have previously  reported that complete cost estimates are a best practice in capital  planning, Moreover, while old courthouse plans may not be available  when a new courthouse is initially proposed, GSA periodically updates  Congress after the initial proposal to obtain additional authorizations. For 33 of the 40 old courthouses retained by GSA, the new courthouse  proposals specified that the old courthouses would be reused for federal  tenants. However, only 15 of the 40 of new courthouse proposals  addressed whether renovations were needed in the old courthouse and  only 11 included estimates of the renovation costs. Recommendation

To improve the transparency of cost information regarding the retention  and reuse of old courthouses, we recommend that when proposing new  courthouses, the Administrator of the General Services Administration, in  consultation with the judiciary as appropriate, include plans for re-using or disposing of the old courthouses; challenges with implementing those plans, including any required  renovations and related cost estimates, to be updated as needed; and when the plans involve re-locating federal tenants from commercially- leased space to the old courthouses, estimates of the long-term costs  of occupying the old courthouses versus continuing to occupy  commercially leased space. GSA concurred with the recommendation and  AOUSC agreed that GSA and the judiciary should continue to work  together to address the judiciary’s housing needs, but indicated that it is  important not to delay the authorization and funding of new projects. Appendix I: Objectives, Scope, and Methodology

Our objectives were (1) how the government is re-using old courthouses  that were retained and the challenges involved; (2) how GSA disposed of  old courthouses, the process involved, and the results; and (3) the extent  to which GSA’s proposals for new courthouses considered the future use  of the old courthouses. To determine how GSA disposed of old courthouses, the process  involved, and the results, we reviewed the authorities that GSA used to  dispose of the buildings, data on the length of time it took to dispose of  them, the proceeds, and interviewed representatives of the new owners  of selected disposed old courthouses. For all of our case studies, we  reviewed GSA data and other documents and interviewed GSA officials. We  selected the 17 old courthouses that represented a mix of retained and  disposed buildings located in geographically diverse areas.
Why GAO Did This Study

During the last 20 years, GSA built 79 new courthouses for the judiciary that replaced or supplemented 66 old courthouses. Retaining and re-using or disposing old courthouses can be challenging for GSA because many of them are more than 80 years old, do not meet current court security standards, and have historic features that must be preserved by federal agencies in accordance with historic preservation requirements. GAO was asked to review how GSA and the judiciary are planning and managing the reuse or disposal of old courthouses. GAO examined (1) how the government is re-using old courthouses that were retained and the challenges involved; (2) how GSA disposed of old courthouses, the process involved, and the results; and (3) the extent to which GSA's proposals for new courthouses considered the future use of old courthouses. As case studies, we selected 17 old courthouses to represent a mix of retained and disposed buildings located in geographically diverse areas.

What GAO Found

Of the 66 old federal courthouses that GAO reviewed, the General Services Administration (GSA) retained 40, disposed of 25, and is in the process of disposing of another. Of the retained old courthouses, the judiciary occupies 30 of them, 25 as the main tenant, most commonly with the district and bankruptcy courts. When determining whether to retain and reuse or to dispose of old courthouses, GSA considers, among other things, a building's condition, the local real estate market, and the existing and projected base of federal tenants. GSA officials said that after the judiciary moves to new courthouses, old courthouses often require renovations to be reused. Moreover, GSA officials said that it can be challenging to find new tenants for old courthouses due to the buildings' condition and needed renovations, among other reasons. Among the retained old courthouses GAO reviewed, excluding one building that was under major renovation, about 14 percent of the total space (nearly 1-million square feet) in them was vacant as of May 2013--significantly higher than the 4.8 percent overall vacant space in federally-owned buildings in 2012.
GAO found that GSA took about 1.4 years to dispose of old courthouses that the agency determined were no longer needed. GSA officials told us that multiple parties' interest in re-using the old courthouses, the historic status of many buildings, and their specialized designs can slow the disposal process.
GSA is not specifically required by statute to include plans for old courthouses in its proposals to Congress for new courthouses. However, as with other building proposals over a certain dollar threshold, GSA is required to include, among other things, a "comprehensive plan" to provide space for all federal employees in the area, considering suitable space that may be available in nearby existing government buildings. In addition, GAO and the Office of Management and Budget have previously reported that complete cost estimates are a best practice in capital planning. GAO found that renovations needed to reuse the old courthouses, totaling over $760 million to date, were often not included in GSA's new courthouse proposals. Specifically, for 33 of the 40 retained old courthouses, the new courthouse proposals described plans for reuse by federal tenants, but only 15 proposals specified whether renovations were needed to realize these plans, and only 11 included estimates of the renovation costs. GAO found that some old courthouses were partially or wholly vacant while awaiting renovation funding, sometimes resulting in money spent leasing space in commercial buildings for the judiciary.

What GAO Recommends

In proposing new courthouses, GSA, in consultation with the judiciary, should include plans for re-using or disposing of old courthouses, any required renovations and the estimated costs, and any other challenges to re-using or disposing of the buildings. GSA concurred with the recommendation and AOUSC agreed that GSA and the judiciary should work together to address the judiciary's housing needs.