Two  other ongoing challenges—the marketability of VA properties and  prioritizing funding for disposals—were also mentioned as factors  impeding VA’s property disposal efforts. VA officials also told us that they established a  headquarters-level working group consisting of experts in historic  preservation and environmental reviews as well as real property  transactions to assist VISNs’ and local facilities’ managers in  administering disposals, including conducting these reviews, and in  moving them forward. VA Lacks Clear Procedures to Manage Property Disposals

Another challenge that VA officials and stakeholders raised was VA’s lack  of clear disposal procedures. However, VA’s guidance does not specify sequential  steps and actions that need to be taken at the project level to plan,  implement, and execute property disposals for VISNs’ and local facilities’  managers. For example, VA officials told us that while facility  managers generally know what actions are needed to demolish  properties, they are not familiar with actions that need to be taken for  transferring or selling properties to a third party or turning excess property  over to GSA for disposal. According to facilities managers we spoke to, additional  procedural documentation at the project level could help VISNs’ and local  facilities’ managers navigate through the complex disposal process and  avoid missteps or delays in the disposal of vacant properties. VA Enhanced Its Collection of Data on Vacant Properties but Lacks Key Information to Track and Monitor Disposals VA Has Taken Steps to Enhance How It Collects Data on Vacant Properties

To enhance the monitoring of its real property and to meet reporting  requirements, VA officials told us VA has taken steps in the last 6 years to  improve its real property inventory and the data it collects on its vacant  properties, including properties VA has identified for disposal. These  steps include:
Requiring VISNs’ and local facilities’ managers to verify and  certify the accuracy of the information in the CAI. VA officials in headquarters told us that without data on the  actions and status of disposals, including steps taken to complete  environmental and historic reviews, they are unable to track and monitor  the progress of disposal projects—including the length of time these  reviews take—and to identify any areas where management may assist  local facilities in disposing of properties. While effectively disposing of excess and  underutilized property has been a long-standing challenge for VA, the  agency has taken some positive actions, such as examining ways to  streamline the historic review process, having some documented  procedures, and improving data collection efforts on vacant properties. The Secretary should develop clear procedures for each of VA’s  disposal options to help facilities’ managers plan, implement, and  execute projects to dispose of vacant and unneeded properties. As VA implements its plans to enhance the CAI to collect key data on  disposal projects, the Secretary should collect data on disposal status  information and time frames (e.g., environmental and historical  reviews’ starting dates) to ensure VA has the information it needs to  track the length of the disposal process and identify any areas where  management may assist local facilities in implementing property  disposals. Specifically, we address: (1) the challenges VA faces  disposing of its vacant property and how it is addressing those challenges  and (2) the extent to which VA is tracking and monitoring the disposal of  its properties. To identify challenges that VA faces when disposing of property and how  VA is addressing them, we selected a non-generalizable sample of 31  properties using data from VA’s Capital Asset Inventory as mentioned  above. The 31 properties we selected were either completed in fiscal year  2017 or planning was under way for disposal, including through the  General Services Administration (GSA). To determine the extent to which VA is tracking and monitoring the  disposal of its vacant properties, we reviewed the current data fields in  VA’s Capital Asset Inventory, as well as VA’s planning and guidance  documents, including the Fiscal Year 2017 Capital Asset Inventory and  Disposal Plans Updates (Annual Call Memo).
Why GAO Did This Study

VA is one of the largest federal property-holding agencies, and its inventory of vacant buildings has generally increased over the last 6 years. Disposing of its excess properties has been a long-standing challenge.
GAO was asked to review how VA manages its real property disposals. This report addresses: (1) the challenges VA faces in disposing of its vacant properties and how it is addressing those challenges and (2) the extent to which VA is tracking and monitoring the disposal of its vacant properties.
GAO reviewed VA's policies and planning documents regarding property disposals. GAO also selected 31 properties that were either disposed of or planned for disposal in fiscal year 2017, among other selection criteria. GAO interviewed VA officials and stakeholders involved in the disposal of the 31 selected properties and familiar with VA's disposal process, including steps VA is taking to address challenges.

What GAO Found

Conducting required environmental and historic reviews in a timely manner is among the challenges the Department of Veterans Affairs (VA) faces in its real property disposal process. These reviews include assessing the potential effects of property disposals on the environment and historic preservation. VA is taking steps to address these ongoing challenges. For example, VA has established a working group consisting of experts in historic preservation, environmental reviews, and real property to assist facilities' managers in expediting disposals. However, other ongoing challenges remain, including the marketability of VA properties and VA's lack of clear procedures for property disposals. While VA has guidance on disposals at the broad portfolio level, GAO determined that this guidance does not contain step-by-step procedures at the project level to assist facilities' managers to plan, implement, and execute disposals for the different disposal options. (See figure.) For example, a number of managers told GAO that they were not familiar with actions to take when transferring properties to a third party or turning over excess property to the General Services Administration for disposal. VA officials commented that facilities' managers do not frequently dispose of properties, so a procedural document outlining the steps and who is responsible for taking those steps may help staff navigate more complex disposal processes and avoid missteps and delays.
VA has enhanced its data collection on vacant properties, but the agency does not collect information needed to track and monitor disposal projects at the headquarters level. For example, VA requires facilities' managers to verify and certify the validity of vacant property data in the database used to manage real property—the Capital Asset Inventory. On disposal projects, however, VA lacks certain information, such as the status of environmental or historical reviews, to monitor progress. According to VA, the Capital Asset Inventory currently does not have enough capacity to collect key information and supporting documentation. VA officials said they plan to increase the capacity, but VA has not yet included some key information in the Capital Asset Inventory that could enable VA to monitor the progress of disposals. Without information on the status of disposal projects, VA cannot readily track and monitor its progress and identify areas where facilities' managers may need additional assistance.

What GAO Recommends

GAO is making three recommendations. These include developing disposal procedures for facilities' managers to help plan, implement, and execute disposal projects and collecting key information on the status of disposal projects, as VA implements its plans to increase the capacity of VA's Capital Asset Inventory. VA concurred with GAO's recommendations.