In addition, a federal entity with independent  disposal authority may request GSA to dispose of a building under the  Property Act. The Scope of Both Disposal and Retention of Proceeds Authorities Varies Widely

		Twenty Federal Entities Reported Having Building Disposal Authority and 15 Reported Having Authority to Retain Proceeds from Building Disposals

In all, 20 federal entities in our review reported having at least one  statutory disposal authority that allowed them to dispose of domestic  buildings. The Scope of Disposal Authorities Varies, with Some Providing Broad Authority While Others Are Narrow

About half of the federal entities have broad authority to dispose of  buildings, an authority that applies to the entities’ entire portfolios, but  those portfolios only account for about 9 percent of the federally owned  civilian buildings reported to FRPP. The other federal entities’  authorities are limited based on factors such as facility type or program. Most Federal Entities Reported Limited Opportunities to Use Their Authorities to Dispose of Buildings and Retain Proceeds

		About One-Third of Federal Entities Reported Using Their Disposal Authorities during Fiscal Years 2011 through 2015 but for a Minority of Their Total Building Disposals

From fiscal years 2011 through 2015, 7 of the 20 federal entities that  reported having building disposal authority reported using that authority. The other two entities, GSA and USPS, which  have very broad disposal authority, used their disposal authority for all of  the buildings they disposed of that year—which was 12 and 15 buildings,  respectively. Five Federal Entities That Reported Having Authority to Retain Proceeds Reported Gross Proceeds from Buildings Disposed of by Sale

Five federal entities that reported having authority to retain proceeds from  buildings disposed of by sale reported gross proceeds of about $557  million from these sales during the selected 5-year time frame of our  review. USPS and GSA retained proceeds from all of their building sales  but GSA’s use of those proceeds was restricted to specific purposes. In some cases, a federal entity is not making the disposal decision  because it is directed in law to dispose of property. These funds  generally come from the entity’s operations and maintenance account,  meaning that preparing a building for disposal competes with ongoing  program requirements for funding. Appendix I: Objectives, Scope, and Methodology

Our objectives were to examine: (1) the scope of disposal authorities held  by civilian CFO Act agencies and the United States Postal Service  (USPS); (2) the results of these federal entities’ use of their disposal  authorities during fiscal years 2011 through 2015; and (3) the factors that  drive building disposal decisions, and what additional authorities selected  officials at selected federal entities believe could help facilitate these  disposals. To identify those federal entities with disposal authority and determine the  scope of those authorities—including the authority to retain the proceeds  from disposals––we surveyed 22 of the 23 civilian CFO Act Agencies,  asking if they possessed statutory authority to dispose federally owned  buildings and to retain any proceeds resulting from those disposals. We also  interviewed agency officials about the scope and applicability of these  authorities, and the extent to which they were utilized during the fiscal  year 2011 through 2015 time frame. 22 U.S.C. Federal Real Property: Excess and Underutilized Property Is an Ongoing  Challenge.
Why GAO Did This Study

Federal property management has been on GAO's High-Risk list since 2003, in part because the government maintains too much excess and underutilized property. GSA has the authority to dispose of property for all federal entities under the Federal Property and Administrative Services Act of 1949, as amended. However, some federal entities (either departments or departmental components) have been provided with independent statutory authority to dispose of buildings and other types of property and, in some cases, retain proceeds from such disposals.
GAO was asked to review the extent to which federal entities have disposal authority independent of the Property Act, including the authority to retain proceeds. This report examines (1) the scope of building disposal authorities held by civilian Chief Financial Officer Act (CFO Act) agencies and USPS; (2) the results of these federal entities' use of their disposal authorities during fiscal years 2011 through 2015; and (3) the factors that drive building disposal decisions, and what additional authorities officials at selected federal entities believe could help facilitate these disposals. GAO surveyed 22 CFO Act agencies, interviewed officials from 12 federal entities that reported having disposal authority, reviewed statutory authorities and guidance materials, and analyzed disposal data from fiscal years 2011 through 2015 for these entities.
GAO provided a draft of this product to 15 agencies for comment and 8 provided technical comments, which were incorporated as appropriate.

What GAO Found

Twenty civilian federal entities reported they have at least one statutory authority that allows them to dispose of federally owned buildings under their control. Fifteen entities reported the authority to retain proceeds from building disposals. However, most of these federal entities reported limited use of their independent authorities during fiscal years 2011 through 2015. Seven entities that reported having disposal authority used it during this time frame, and 5 entities that reported having authority to retain proceeds did so (see figure below). The scope of disposal authorities varies among entities; about half have broad authority but these entities only account for about 9 percent of domestic federal buildings. Other authorities are limited, for example, to specific types of facilities or methods of disposal. In addition, statutory authorities to retain proceeds also vary, with most restricting how a federal entity may use the proceeds.
Five of the 7 entities that reported using their independent disposal authority reported using it for only about 8 percent of the buildings they disposed of in fiscal year 2015. The General Services Administration (GSA) and the U.S. Postal Service (USPS) have broad authorities that were used for all of their disposals. The five federal entities that retained proceeds reported about $557 million from all building sales, not just those in which they used their authority from fiscal years 2011 through 2015. Of this amount, USPS's building disposals accounted for $446 million, GSA for $89 million, and the other 3 entities accounted for the remaining $22 million.
Officials from most of the federal entities GAO interviewed said building disposal decisions are mainly based on mission needs rather than the authorities. Officials from 5 entities said they would like the authority to use proceeds from building sales to cover costs of preparing buildings for disposal, such as the cost of environmental remediation. Currently, up-front disposal costs compete with ongoing operations and maintenance costs for budget resources.