That same year, State embarked on a multiyear, multibillion  dollar program to replace overseas facilities. NECs Do Not Fully Meet the Space and Functionality Needs of Overseas Posts and State Actions Have Addressed Some, but Not All, Challenges

State is making progress moving staff into more secure and functional  facilities. However, we found that over half of the 44 NECs completed from  2001 through 2009 have staffing levels that exceed the number of desks  originally provided by 5 percent or more. State officials also  indicated that budget constraints affected decisions about the overall size  and types of features provided in NECs. State has taken steps to address some space and functionality  challenges, such as creating M/PRI to standardize the process for projecting  future staffing levels; incorporating some additional flexibility for future  growth into NECs; and implementing a lessons learned program to analyze  issues in completed NECs and modify design criteria for future NECs. State officials noted that, in general,  NECs are a dramatic improvement over older facilities. Post management has converted common  spaces, such as conference rooms or training rooms, into offices in order  to accommodate additional desks on the compound. Officials at Nearly All Posts We Reviewed Reported the Design of Some Spaces Did Not Fully Meet Their Functional Needs

Though staff at overseas posts noted many aspects of NECs function well,  officials at 21 of the 22 posts we reviewed reported the design of some  spaces within the NEC did not fully meet their functional needs, with an  average of five functionality-related issues per post. Challenges with Projecting Future Staffing Levels and Budget Constraints Have Resulted in the Need to Conduct Follow-on Work

According to State officials, it is difficult to predict changes to staffing  levels associated with shifting foreign policy priorities, and the process for  planning NECs has not been able to fully account for those changes. While State’s efforts to implement the lessons learned program have  resulted in improvements, State has not ensured that reviews of completed  NECs are undertaken in a timely manner. NECs Are Challenging to Operate and Maintain; State Has Taken Steps to Address These Challenges, but Problems Remain

State has constructed NECs that are state-of-the-art buildings, built in  accordance with current building codes, security, and energy-efficiency  standards. State has made  organizational changes, revised its commissioning process, and changed  design criteria to avoid problems with future NECs. However, State has  not developed a plan to recommission or retest completed NECs to ensure  building systems are operating as efficiently as possible and that  outstanding and potential problems with NEC building systems, such as  the increased risk of failure of NEC cooling systems, are being fully  addressed. In addition, State has had problems in hiring U.S. facility  managers and hiring and training locally employed maintenance staff that  have the necessary technical skills to operate and maintain an NEC’s  complex systems. Larger, More Technologically Complicated New Facilities Cost More to Operate and Maintain than Those They Replaced

The comparatively larger size of NECs and the complexity of their building  systems have resulted in higher operations and maintenance costs than at  the facilities they replaced. These  alarms can cause disruptions. Conclusions

State has built 52 NECs that are more secure, safe, and functional for U.S.  government personnel working overseas. Problems  with commissioning and transferring the NECs from the contractors to the  posts have resulted in some building systems that do not function as they  should and led to added costs to repair and replace systems, contributed to  higher operating costs, and created potential safety risks for staff. Identify time frames for implementing the maintenance projects that are  outlined in the LROMP. Appendix I: Scope and Methodology

The objectives of this report were to examine (1) the extent to which new  diplomatic facilities match the space and functionality needs of overseas  posts and the actions State has taken to address any space and  functionality challenges; and (2) operations and maintenance challenges at  these new facilities and State’s steps to address them. To obtain more detailed information on space, functionality, and  operations and maintenance challenges, we reviewed 22 NECs, or one-half  of the posts within our scope, in greater depth. 3. 6. 7.
Why GAO Did This Study

In response to the 1998 bombings of two U.S. embassies, the Department of State (State) embarked on a multiyear, multibillion dollar program to replace insecure and dilapidated diplomatic facilities. Since 2001, State has constructed 52 new embassy compounds (NECs) under this program, and moved over 21,000 U.S. government personnel into more secure and safe facilities. GAO was asked to examine (1) the extent to which new facilities match the space and functionality needs of overseas missions and State's actions to address space and functionality challenges; and (2) operations and maintenance challenges at these new facilities and State's steps to address them. GAO analyzed staffing data and other documentation for 44 NECs built from 2001 to 2009 and interviewed State headquarters and embassy officials at 22 of these 44 NECs to obtain information on their functionality and operations and maintenance issues.

What GAO Found

State has located nearly one-quarter of overseas staff in NECs, which posts said are an improvement over older facilities. However, NECs do not fully meet the space and functionality needs of overseas missions. Current staffing levels exceed the originally-built desk--or office--space at over half of the 44 NECs GAO analyzed. Post management has dealt with space limitations by converting spaces, like conference rooms, into offices, but 4 posts have had to retain space outside the compound for staff that could not fit in the NECs. Also, officials at almost all of the 22 NECs that GAO reviewed in depth reported some spaces, like consular affairs spaces, did not fully meet their functional needs. According to State officials, it is difficult to predict changing foreign policy priorities that can affect staffing levels, and the process for planning NECs has been unable to fully account for these changes. Budget constraints also affected decisions about the size of NECs and types of features provided. State has taken some actions to improve NEC sizing, but does not have sufficient flexibility in its staffing projection and design processes to better address sizing challenges. To address problems with functionality, State implemented a lessons learned program to analyze issues in completed NECs and modify design criteria for future NECs, but State has not completed, in a timely manner, planned evaluations that are designed to identify such issues. While NECs are state-of-the-art buildings, they have presented operations and maintenance challenges, and the larger size and greater complexity of NECs, compared to facilities they replaced, have resulted in increased operations and maintenance costs. In 2010, State developed its first long-range maintenance plan that identifies $3.7 billion in maintenance requirements over 6 years for all overseas facilities, but it does not include time frames for implementing identified maintenance projects or address increased operating costs. Problems with testing, or "commissioning," new building systems have contributed to problems with building systems that do not function as they should, causing higher maintenance costs. State strengthened its commissioning process, though this change only applies to future NECs and does not address problems at existing NECs. Further, State does not currently recommission--or retest--NECs to ensure they are operating as intended. In addition, more than half of the 22 NECs that GAO reviewed in detail experienced problems with some building systems, resulting in the need for premature repair and replacement. Through its lessons learned program, State has changed some design criteria for future NECs to avoid problems with building systems. Finally, State has had problems hiring and training personnel who have the technical skills necessary to manage the complex NEC systems. State has taken initial steps to improve its staff hiring and training, but does not have an overall plan to establish its NEC human resource needs and the associated costs.