DOD’s Options for Granting the Use of Space to Non-DOD Entities Are Outlined in Guidance, and Several Factors Are Considered by Installations

		DOD and Military Department Guidance Identify the Real Estate Instruments and Support Agreements Used to Grant Space

DOD and military department guidance identify the real estate  instruments used to issue outgrants, and—depending on the type of non- DOD tenant and type of facility occupied—the appropriate instances in  which to use each real estate instrument. Permits are licenses granted to non-DOD federal agencies  generally in return for reimbursement of direct and indirect costs,  as required by DOD guidance. Officials at all seven of the installations that we visited reported selecting  the appropriate real estate instrument based on the type of non-DOD  entity occupying space at the installation, the type of facility, and the  proposed use of the asset. Prior to granting the use of space to a non-DOD entity, officials at the  installations we visited reported considering several factors. If suitable space is identified, a second  factor that officials at all seven installations reported considering was  whether the installation had competing interests for real property assets  that are available. Officials at all seven of the military  installations we visited cited limitations in accommodating space requests  from potential tenants due to a lack of vacant space that aligns with the  tenant’s request, such as the amount of space or type of space needed,  or vacant space that is not in suitable condition. Bringing Non-DOD Federal Agencies onto Military Installations Can Provide Benefits to the Installation and Tenant Agency

While there are limitations to bringing tenants onto military installations,  according to installation officials, both the installation and tenant agency  can benefit when a match can be made between an installation’s  available space and the tenant agency’s needs. DOD and GSA Do Not Routinely Share Information Concerning Opportunities to Use Unutilized or Underutilized Facilities

Despite the benefits to DOD and non-DOD federal agencies, routine  information sharing does not occur between DOD and GSA concerning  opportunities to move non-DOD federal agencies onto military  installations to make better use of unutilized and underutilized facilities,  although GSA may have information on agencies near an installation  needing space. We found that  military installations do not routinely share information with GSA or other  non-DOD federal agencies when space is available in part because, as  stated before, military installations generally wait for non-DOD federal  agencies to inquire about available space. Without actions to share information at  the regional and local level, GSA offices working with non-DOD federal  agencies may risk missing opportunities for clients to use available  underutilized or unused federal space at lower cost than commercial  leases. In addition, DOD may be missing opportunities to leverage  resources with GSA to enhance utilization of its unutilized and  underutilized facilities and reduce costs associated with maintaining these  facilities. We agree that the actions outlined by DOD and GSA represent a positive  step toward ensuring that government-owned assets are used to  capacity. Appendix I: Objectives, Scope, and Methodology

To evaluate the potential for and obstacles to federal agencies other than  Department of Defense (DOD) organizations relocating onto military  installations to save costs and enhance security, this report identifies (1)  what options, if any, are available for DOD to allow non-DOD entities,  including federal government agencies, to use unutilized (vacant) and  underutilized (partially vacant) space on military installations, and what  factors DOD considers when considering exercising each option; (2) any  limitations and benefits of bringing non-DOD federal agencies onto  installations; and (3) the extent to which DOD and other federal agencies  coordinate to do so. To determine what options are available and factors to consider for DOD  to allow non-DOD entities, including federal government agencies, to use  unutilized and underutilized space on military installations, we reviewed  applicable DOD and military department guidance to identify the  circumstances under which non-DOD tenants are allowed to utilize space  on military installations, the order of priority for considering non-DOD  tenants for use of space, the types of real estate instruments used to  grant non-DOD entities use of space on military installations, and the  documents used to record the terms and conditions associated with the  use of space on military installations. Specifically, the National  Defense Authorization Act for Fiscal Year 2014 included a provision for  GAO to consider the potential for and obstacles to consolidation of federal  tenants on installations that support Arctic missions, focusing on federal  entities with homeland security, defense, international trade, commerce,  and other national security functions that are compatible with the missions  of military installations, or can be used to protect national interests in the  Arctic region.
Why GAO Did This Study

GAO has designated DOD's Support Infrastructure Management as a high-risk area in part due to challenges in reducing excess infrastructure. DOD installations can establish agreements to allow entities such as non-DOD federal agencies and private entities to use property on DOD installations that are unutilized or underutilized. DOD reports that, as of the end of fiscal year 2013, its real property portfolio consisted of more than 562,000 facilities with an estimated value of $850 billion.
The National Defense Authorization Act for Fiscal Year 2014 included a provision that GAO review the potential for relocating federal government tenants onto military installations. This report identifies (1) available options for DOD to allow non-DOD entities to use unutilized and underutilized space on military installations, and what factors DOD considers for each option; (2) any limitations and benefits of bringing non-DOD federal tenants onto military installations, and (3) the extent to which DOD and other federal agencies coordinate to do so. GAO evaluated DOD and military service guidance; visited selected installations having non-DOD tenants, including two that support the Arctic mission; and interviewed cognizant officials.

What GAO Found

Department of Defense (DOD) guidance outlines options for granting the use of unutilized (vacant) and underutilized (partially vacant) space on military installations to non-DOD entities, such as other federal agencies, and installations consider several factors when contemplating such grants. For example, DOD and military department guidance identifies the real estate instruments, such as leases and licenses that are to be used to issue grants to non-DOD entities. All seven of the installations that GAO visited reported using this guidance to select the appropriate instrument based on the type of non-DOD entity, type of facility, and proposed use of the asset. For example, installations selected permits as the appropriate real estate instrument when issuing grants to a non-DOD federal agency as outlined in DOD and military department guidance. Prior to granting the use of space to a non-DOD entity, officials at installations reported considering several factors, including the availability of space, effect on the mission, and factors unique to the installation. In instances where there are competing interests for space, officials reported considering priorities set forth in DOD guidance for assigning available space on the installation. Officials also reported considering whether the tenant could potentially have a negative effect on the installation's ability to comply with any regulations, such as preserving protected habitats.
DOD faces both limitations and benefits from moving non-DOD agencies onto installations. Limitations such as the availability of suitable space affect DOD's ability to bring non-DOD federal agencies onto military installations. For example, officials at all seven of the installations GAO visited reported a lack of vacant space or vacant space that is usable, which limited their ability to accommodate space requests. However, when a match can be made between an installation's available space and a potential tenant agency's needs, both parties can benefit. For example, installations can potentially benefit through the avoidance of direct and indirect costs, such as the cost for utilities and maintenance incurred for unused or underutilized space. Non-DOD federal agencies can save costs on commercial leases because DOD charges for use of space by other federal entities on a cost-recovery basis.
Despite the potential benefits, routine information sharing does not occur between DOD and the General Services Administration (GSA) concerning opportunities to move non-DOD federal agencies onto military installations. Specifically, when GSA is working to satisfy the space needs of its clients, it does not routinely contact DOD installations to inquire whether space might be available. DOD, on the other hand, waits for non-DOD federal agencies to inquire whether space is available and does not generally reach out to GSA or agencies that may be interested in space. Without taking actions to share information, GSA offices working with non-DOD federal agencies to find them space may risk missing opportunities for their clients to reduce or avoid costs. In addition, both GSA and DOD may miss opportunities to leverage resources and enhance utilization of federal real property.

What GAO Recommends

GAO recommends that DOD and GSA collaborate to enhance routine information sharing concerning non-DOD federal agencies seeking workspace at military installations. DOD and GSA concurred and agreed to take action to help ensure that government-owned assets are used to capacity.