The facility was slated to revert to the German  government in 2000. Renovation of the facility is scheduled from  September 2003 to March 2005. According to State’s business plan to purchase the facility, the Creekbed  project had four fundamental objectives. Furthermore, the House Conference  Report for the Consolidated Appropriations Resolution 2003 stated that  the conferees support “the Department ’s effort to initiate a  consolidation, streamlining and regionalization of country and multi- regional staffing in Frankfurt, Germany.” The report also said, “The  success of this initiative will be measured largely by the staffing  reductions made possible at less secure locations throughout Germany,  Europe, Eurasia, Africa and the Near East.”

	State Indicated It Has Renewed Efforts to Identify Staff for Relocation from Posts Outside Germany

State indicated it has renewed its efforts to identify staff from posts  outside Germany who could be relocated to the new Frankfurt regional  center. State’s  earlier efforts were prematurely halted in August/September 2002 because  staffing planners mistakenly interpreted space planning estimates as  indicating the regional center would be fully occupied. State also  indicated that it would pursue a rigorous rightsizing and regionalization  strategy in staffing the Frankfurt facility. Resistance from Some Agencies Is Expected

Although substantial space exists for relocating staff from other posts,  State documents indicate that the department may encounter some  resistance among agencies identified to relocate. They, too, agreed that there was  additional space. More importantly, it will require a strong  and continual commitment by State to the broader objective of rightsizing  the U.S. overseas presence. In our view, State’s comments are inconsistent with its (1) stated  expectations that the Frankfurt project will achieve the department’s key  rightsizing and regionalization goals and (2) plans to conduct a full  assessment of staffing options for the Frankfurt regional center. Appendix I: Comments from the Office of Management and Budget

Appendix II: Comments from the Department of State
Why GAO Did This Study

The State Department plans to spend at least $80 million to purchase and renovate a multibuilding facility in Frankfurt, Germany. The facility, known as Creekbed, is scheduled to open in mid-2005. The project is a key rightsizing initiative under the President's Management Agenda to reassess and reconfigure the staffing of the U.S. overseas presence. Creekbed is expected to achieve the department's major rightsizing and regionalization goals. The Office of Management and Budget expects the project to serve as a model for developing other regional centers. GAO was asked to determine whether State fully examined the potential for relocating regional staff from outside Germany to Creekbed.

What GAO Found

The Department of State indicated it is currently renewing earlier efforts to relocate staff from outside Germany to the new Frankfurt regional center. State said it would pursue a rigorous rightsizing and regionalization strategy in staffing the Frankfurt facility. State prematurely stopped its earlier efforts to relocate regional staff from other posts in August/September 2002 because staffing planners interpreted space planning estimates as indicating that the regional center would be fully occupied. However, according to GAO analysis, the facility was not full and significant additional space existed. After touring the facility and studying staffing requirements and space allocated for specific agencies, GAO found there was space available for additional staff. Successfully staffing the Frankfurt regional facility has the potential to optimize its use and achieve broader regionalization objectives.