The act defines military construction as projects that result in the creation of complete and usable new facilities or complete and usable improvements to existing facilities on military installations. Projects costing less than $500,000 may be funded from other appropriations, such as operation and maintenance. The statute also allows construction costing less than $1.5 million to be carried out as unspecified minor construction, which is funded as a single amount rather than by individual project. Programming Process Varies Depending on Project Funding

The programming process for any construction or repair project varies according to the project funding source. Because the law requires military construction projects to be specifically authorized, the services and DOD review each compliance construction project to be funded with 5-year military construction appropriations and request individual project funding approval from Congress. Reporting of Future Requirements Estimates

While DOD has made some improvements to its annual compliance reporting in its annual report and supporting budget documents, the information provided is still insufficient for oversight purposes. Conclusions and Recommendation

DOD’s criteria for determining which appropriation account should be used to fund construction and repair projects is set forth in laws and regulations. The law requires military construction appropriations to be used for all military construction projects costing over $500,000. Operation and maintenance appropriations are available to fund construction projects costing less than $500,000 and repairs of any value. The process for programming funds for environmental compliance construction or repair activities varies according to the project funding source. Under the process, the level of project justification detail that DOD provides to Congress is greater for military construction projects than for projects funded under other appropriations. Thus, to improve the specificity of its reporting, we recommend that the Secretary of Defense direct the Deputy Under Secretary of Defense for Environmental Security to revise the DOD annual report to Congress to (1) identify all proposed construction and repair projects over $300,000 for all services and (2) include the funding sources for them.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed: (1) the Department of Defense's (DOD) environmental compliance projects funded as construction or repair; (2) DOD's criteria for determining which appropriation account is used for programming funds; (3) the process for programming funds; and (4) reporting on future funding requirements.

What GAO Found

GAO noted that: (1) the basis for determining which funding source should be used for funding environmental compliance construction and repair projects is set forth in laws and regulations; (2) the law requires military construction appropriations to be used for all construction projects costing over $500,000; (3) the law defines construction as the creation of complete and usable new facilities or complete and usable improvements to existing facilities on military installations; (4) in general, operation and maintenance appropriations are available to fund construction projects costing less than $500,000 and repairs of any value; (5) other appropriations such as research, development, test, and evaluation, may also be used in appropriate circumstances; (6) the programming process for environmental compliance construction or repair activities varies according to the project funding source; (7) under the process, the level of project justification detail that DOD provides to Congress is greater for military construction projects than for projects funded under other appropriations; (8) in general, any military construction project, including environmental compliance projects, is programmed, reviewed, budgeted, and funded individually; (9) projects to be funded from operation and maintenance appropriations are rolled up into a single amount for budgeting and funding purposes; (10) the law permits some smaller value military construction projects to be carried out as unspecified minor construction; (11) these are budgeted as a single amount; (12) DOD has made some improvements to its annual compliance reporting by identifying specific projects that will cost over $300,000; (13) DOD has improved the detailed budget information provided to Congress by identifying recurring and nonrecurring compliance costs by appropriation; and (14) however, information provided to Congress in this report does not identify proposed construction and repair projects costing over $300,000 and their funding sources.