According to FRPC’s sample asset  management plan and guidance, the major sections of the asset  management plan are supposed to describe how the agency:    addresses its mission and real property support in implementing its  missions and strategic goals, human capital and organizational structure,  decision-making framework, and owner’s objectives;    plans for and acquires real property assets, develops its capital plan,  prioritizes its list of acquisitions each fiscal year, measures the  effectiveness of its acquisition results, and identifies key initiatives to  improve financial management and acquisition performance;   operates its real property assets (including its inventory system,  operations and maintenance plans, asset business plans, or “building  block” plans, and periodic evaluation of assets), utilizes operational  measures, and implements key initiatives to improve operational  performance; and    disposes of unneeded real property assets, measures the effectiveness of  its redeployment actions, and identifies key initiatives to improve the pace  of disposition as well as its ability to dispose of difficult, environmentally  challenged properties. Energy, NASA, GSA, Interior, State,  and VA reported repair and maintenance backlogs for buildings and  structures that total over $16 billion. In addition, DOD reported a $57  billion restoration and modernization backlog. Five of the nine largest real property-holding agencies—Energy, Interior,  GSA, State, and VA—reported an increased reliance on operating leases to  meet new space needs over the past 5 years. Governmentwide Real Property Data Inventory Is in Early Stages, and Data Reliability Is Still a Problem at the Agency Level

While the administration and agencies have made progress in collecting  standardized data elements needed to strategically manage real property,  the long-term benefits of the new real property inventory have not yet  been realized, and this effort is still in the early stages. All of the nine agencies reported using  risk-based approaches to some degree to prioritize facility security needs,  as we have suggested; but some agencies cited challenges, including a  lack of resources for security enhancements and issues associated with  securing leased space. Underlying Obstacles Hamper Agency Real Property Reform Efforts Governmentwide

In past high-risk reports, we called for a transformation strategy to address  the long-standing problems in this area. While the administration’s current  approach is generally consistent with what we envisioned and the  administration’s central focus on real property management is a positive  step, certain areas warrant further attention. Specifically, problems are  exacerbated by underlying obstacles that include competing stakeholder  interests and legal and budgetary limitations. For example, some agencies  cited local interests as barriers to disposing of excess property. In  addition, agencies’ limited ability to pursue ownership often leads them to  lease property that they could more cost-effectively own over time. Appendix I: Objectives, Scope, and Methodology

Our objectives were to determine (1) what progress the administration and  major real property-holding agencies have made in addressing long- standing problems and (2) what problems and obstacles, if any, remain to  be addressed. These agencies are the Departments of Defense (DOD), Energy  (Energy), Homeland Security (DHS), the Interior (Interior), State (State),  and Veterans Affairs (VA); the General Services Administration (GSA); the  National Aeronautics and Space Administration (NASA), and the United  States Postal Service (USPS). We also  interviewed officials from the Office of Management and Budget (OMB)  because it oversees the implementation of Executive Order 13327, which  addresses federal real property management. Our January 2003 high-risk  work identified five long-standing problems in federal real property  management, including excess and underutilized property, deteriorating  facilities, reliance on costly leasing, and unreliable real property data. We prepared this report under the Comptroller General’s authority to  conduct evaluations on his own initiative as part of a continued effort to  assist Congress with oversight of real property issues.
Why GAO Did This Study

GAO prepared this report under the Comptroller General's authority to conduct evaluations on his own initiative to assist Congress. Federal real property is a high-risk area due to excess and deteriorating property, reliance on costly leasing, unreliable data, and security challenges. GAO's objectives were to determine (1) what progress the administration and major real property-holding agencies have made in strategically managing real property and addressing long-standing problems and (2) what problems and obstacles, if any, remain to be addressed. GAO reviewed documents and interviewed officials from the Office of Management and Budget (OMB) and nine agencies that hold 93 percent of federal property.

What GAO Found

The administration and real property-holding agencies have made progress toward strategically managing federal real property and addressing long-standing problems. In response to the President's Management Agenda real property initiative and a related executive order, agencies have, among other things, established asset management plans; standardized data reporting; and adopted performance measures. Also, the administration has created a Federal Real Property Council (FRPC) and plans to work with Congress to provide agencies with tools to better manage real property. These are positive steps, but underlying problems still exist. For example, the Departments of Energy (Energy) and Homeland Security (DHS) and the National Aeronautics and Space Administration (NASA) reported during this review that over 10 percent of their facilities are excess or underutilized. Also, Energy, NASA, the General Services Administration (GSA), and the Departments of the Interior (Interior), State (State), and Veterans Affairs (VA) reported repair and maintenance backlogs for buildings and structures that total over $16 billion. The Department of Defense (DOD) reported a $57 billion restoration and modernization backlog. Also, Energy, Interior, GSA, State, and VA reported an increased reliance on leasing to meet space needs. While agencies have made progress in collecting and reporting standardized real property data, data reliability is still a challenge at DOD and other agencies, and agencies lack a standard framework for data validation. Finally, agencies reported using risk-based approaches to prioritize security needs, which GAO has suggested, but some cited obstacles such as a lack of resources for security enhancements. In past high-risk updates, GAO called for a transformation strategy to address the long-standing problems in this area. While the administration's approach is generally consistent with what GAO envisioned, certain areas warrant further attention. Specifically, problems are exacerbated by underlying obstacles that include competing stakeholder interests, legal and budgetary limitations, and the need for improved capital planning. For example, agencies cited local interests as barriers to disposing of excess property, and agencies' limited ability to pursue ownership leads them to lease property that may be more cost-effective to own over time.