Defense Infrastructure: Greater Management Emphasis Needed to Increase the Services' Use of Expanded Leasing Authority

In comments on a draft of this report, DOD partially concurred with the recommendation, citing that OSD has issued two policy memoranda identifying the goals and objectives to be achieved through enhanced use leasing (EUL). In July 2004, citing our audit report that DOD should accelerate the use of EUL, the Army Corps of Engineers issued an Enhanced Use Leasing Guide to help Army, Navy, Marine Corps, and Air Force installations in the execution of EUL projects and to promote EUL as another tool to address funding shortfalls in the operations and maintenance of facilities. In a recent briefing, a Corps official indicated that the Army's EUL program has increased from 5 projects pre-2004 to 14 projects in 2006. In April 2006, the Air Force Real Property Agency finalized its Enhanced Use Leasing Handbook to encourage the use of EUL. In a July 2006 briefing, an agency official indicated that the Air Force's EUL goals for 2006 and 2007 were 5 projects each, and that it had already identified another project for 2008. In a briefing from July 2006, an official from the Navy Installations Commands listed 10 EUL projects currently under consideration.

In comments on a draft of this report, DOD concurred with this recommendation and agreed that specific program guidelines and criteria for project selection would greatly assist installation commanders in identifying enhanced use leasing (EUL) opportunities. In July 2004, citing our audit report, the Army Corps of Engineers issued an Enhanced Use Leasing Guide to help Army, Navy, Marine Corps, and Air Force installations in the execution of EUL projects. The guide outlines each key step of the EUL process, highlights lessons learned, provides templates for individual EUL projects, and lists potential uses for EUL, such as office spaces, warehouse and industrial spaces, medical facilities, airfields and hangers, sport venues, and laboratories. In April 2006, the Air Force Real Property Agency finalized its Enhanced Use Leasing Handbook, which describes the EUL process, identifies roles and responsibilities, outlines the process to identify potential EUL projects, and explains other EUL concepts. The handbook is intended to encourage the use of EUL in the management of Air Forces assets.