A Few Agencies Carried Out Most Transactions, Which Involved Selling Billions of Dollars in Property

		GSA Reported About 60 Percent of Proceeds across the Federal Government

According to GSA’s annual summary data, 27 agencies reported using  the exchange/sale authority and received a total of about $3.1 billion in  exchange allowances or sale proceeds from fiscal year 2013 through  fiscal year 2017. Specifically, vehicle sales across the  federal government accounted for about $2.6 billion of $3.1 billion (or  about 84 percent) in total proceeds, of which GSA’s Fleet program  accounted for about 71 percent of that total. Selected Agencies Expressed Confusion About How to Use the Authority or Monitor Exchange/Sale Activities

		VA Did Not Understand How to Use the Exchange/Sale Authority

GSA regulations for the personal property exchange/sale authority set  forth several conditions for using the authority, including that the property  exchanged or sold is not excess or surplus and that agencies report  information on their exchange/sale transactions to GSA on an annual  basis. However, GSA OGP officials  stated that replacement property can be purchased prior to the sale of  property. GSA Has Not Clarified Aspects of Using Exchange/Sale Authority for Agencies

GSA OGP officials stated that they recognize some agencies, such as  VA, may experience confusion using the authority, that the regulations  are misunderstood by agencies, and that aspects of the authority need to  be clarified. Nonetheless, GSA OGP officials said they plan to address  these areas of confusion by amending the regulations. However,  officials estimate the rulemaking will likely not be finalized for at least 2  years. If agencies  continue to misunderstand aspects of the exchange/sale authority, they  may not take full advantage of the authority, thereby missing opportunities  to be more effective stewards of government property and replenish  property more efficiently. We found that the Army monitored its exchange/sale activities, as  outlined in its policies. For example, management did not clarify GSA OAS’s  responsibilities nor did it define the scope of its authority for monitoring  exchange/sale activities. Similar to GSA, VA conducted limited monitoring of its exchange/sale  activities. (Recommendation 1)
The Administrator of General Services should take steps to improve  agency-wide monitoring of exchange/sale activities within GSA by  specifying the Office of Administrative Services’ responsibilities and  by defining the scope of its authority. GSA and VA also agreed with  the recommendations for their agencies. GSA is finalizing a plan to address the recommendations. VA agreed with our recommendation to revise its policy to include details  on the exchange/sale authority. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) describe what is known about personal  property exchange/sale transactions, as reported by federal agencies  from fiscal years 2013 through 2017, and (2) examine selected agencies’  experiences using the personal property exchange/sale authority and  monitoring such activities. To describe what is known about the personal property exchange/sale  transactions, we analyzed annual exchange/sale summary data, as  reported to GSA’s Office of Government-wide Policy (GSA OGP) from  federal agencies from fiscal year 2013 through fiscal year 2017. However, we found  reliability issues with data reported by the Department of Veterans  Affairs (VA). To examine selected agencies’ experiences using the exchange/sale  authority and monitoring such activities, we selected three agencies— GSA, the Department of the Army within the Department of Defense  (DOD), and the VA—based on various characteristics, such as the values  of the agencies’ exchange allowances and sale proceeds; the quantity of  items exchanged and sold; and selected three different types of personal  property categories—vehicles, aircraft, and medical equipment—for which  the exchange/sale authority was used over the 5-year time period.
Why GAO Did This Study

According to the U.S. Treasury, the government owns about $1.3 trillion in “personal property” such as computers, furniture, and vehicles. Federal law authorizes agencies to exchange or sell personal property and retain the allowances or proceeds for replacing similar needed property. These are called “exchange/sale” transactions. GSA is responsible for issuing exchange/sale regulations and guiding agencies on the use of the authority.
GAO was asked to review agencies' use of the exchange/sale authority. This report (1) describes what is known about personal property exchange/sale transactions from fiscal year 2013 through fiscal year 2017 and (2) examines selected agencies' experiences using the exchange/sale authority and monitoring such activities. GAO analyzed multi-year data compiled by GSA OGP and found the data to be sufficiently reliable. GAO selected three agencies—GSA, the Army, and VA—based on the type, quantity, and value of personal property exchanged and sold; reviewed agencies' personal property policies; examined agencies' monitoring of exchange/sale activities; and interviewed their officials about personal property management.

What GAO Found

According to data compiled by the General Services Administration's Office of Government-wide Policy (GSA OGP), 27 agencies executed exchange/sale transactions, governed by statute and GSA regulations, to exchange (trade-in) or sell personal property from fiscal year 2013 through fiscal year 2017. The 27 agencies reported transactions totaling about $3.1 billion. Vehicle sales accounted for $2.6 billion (about 84 percent) of that total.
GAO found that GSA officials who procure vehicles for federal agencies and Army officials who purchase helicopters appeared to understand the exchange/sale process and used it frequently. However, Department of Veterans Affairs (VA) officials expressed confusion about key aspects of the authority. For example, officials were unclear about how to sell property; this lack of clarity led to missed opportunities to use sale proceeds for replacing property. GSA OGP officials who guide agencies on the use of the authority acknowledged that the exchange/sale regulations can be confusing but GSA's plan to amend them is at least 2 years away. Because GSA does not plan to address this confusion in the near term through other means such as bulletins or outreach, agencies' misunderstanding of the authority could lead to additional missed opportunities to be effective stewards of government funds.
Regarding monitoring of exchange and sale activities, GAO found that the Army monitored activities consistent with its policy. However, GSA and VA performed limited monitoring because:
GSA had not clarified its responsibilities or defined the scope of its authority for monitoring internal GSA exchanges and sales, and
VA did not have a detailed policy for monitoring and had not communicated information about monitoring to pertinent employees.
Until GSA clarifies its responsibilities and the scope of its authority and VA revises its policy with pertinent details and communicates this information to staff members, neither agency will be positioned to sufficiently monitor exchange/sale activities.

What GAO Recommends

GAO is recommending that GSA OGP address agency confusion about the exchange/sale authority and that GSA clarify its responsibilities and the scope of its authority. GAO is also recommending VA revise its policy to address monitoring and communicate the revision to staff. Both agencies agreed with the recommendations.