In November 1993, we reported that the services’ processes for identifying, classifying, and funding environmental compliance projects varied. Service Initiatives Have Been Taken Without Additional DOD Guidance

The services have taken initiatives to improve their programming and oversight of environmental construction projects. Despite these actions, DOD still has not issued specific guidance on how the services should program and report costs related to environmental compliance construction projects and how they should determine which appropriations should be used to fund the projects. Consequently, the services continue to inconsistently program and report environmental compliance construction projects. DOD-wide estimates of fiscal year 1997 environmental compliance requirements to be funded under the military construction appropriation fell from $257 million in February 1995—when they were submitted to Congress as part of the fiscal year 1996/1997 biennial budget estimates—to $84 million in April 1996. Some reductions resulted from a lack of support for projects proposed in 1995 or decisions to fund at a later time. However, in reviewing cost data provided by the Navy, we noted that the Navy’s current estimate for the project is still $24 million. Matter for Congressional Consideration

DOD cannot adequately determine its environmental compliance construction needs and project priorities. The continuing lack of guidance and inconsistencies in the way DOD programs and funds projects inhibit DOD’s and Congress’ ability to provide overall management and effective program oversight.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) prioritization of environmental compliance construction projects, focusing on: (1) the DOD construction program process; and (2) DOD cost estimates for future projects.

What GAO Found

GAO found that: (1) since GAO's November 1993 report, the services have initiated actions intended to improve their processes for programming and prioritizing environmental compliance construction projects; (2) however, neither the current nor proposed DOD policy specifies how the services should report costs related to environmental compliance construction projects and how they should determine which appropriation account should provide the funds; (3) consequently, the services and DLA continue to vary the manner in which they classify and prioritize the projects and determine the source of funds for them; (4) the continuing lack of such guidance and the inconsistencies inhibit congressional oversight and DOD's program management; (5) DOD-wide estimates for fiscal year 1997 environmental compliance construction requirements fell from $257 million in February 1995 to $84 million in April 1996; (6) due to the lack of a uniform approach to categorizing such projects, GAO cannot determine whether this drop in funding is a result of a reduction in the need for such projects or simply a reflection of differing procedures for categorization; (7) the reasons for reductions fell into several different categories, for example, lack of documentation, decisions to fund in later years, or decreased project costs.