Defense Infrastructure: Issues Related to the Renovation of General and Flag Officer Quarters
Highlights
Recent cost increases in renovation projects to general and flag officer quarters raised questions about the services' management of the programs. GAO was asked to determine (1) how actual costs of renovation projects for general and flag officer housing compare to service budget estimates provided to Congress and (2) the primary reasons for any increases and the services' procedures to control cost increases. Additionally, GAO is presenting observations about the services' accountability over gifts provided to help renovate some general and flag officer quarters and the extent to which Department of Defense (DOD) guidance provides visibility and control over costs associated with renovation projects for privatized general and flag officer quarters.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to reemphasize the importance of limiting customer-driven changes to renovation projects for general and flag officer housing. |
Closed – Implemented
In November 2005, the Navy implemented new guidance concerning policies and approval authority for operation, maintenance, repair, and improvement of public quarters assigned to general and flag officers. The guidance stated that all changes, except scope of work changes needed for life/safety or preserving structural integrity, must be endorsed through the chain of command and will not be accomplished without prior approval of the Chief of Naval operations or the Commandant of the Marine Corps.
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| Department of Defense | The Secretary of Defense should direct the Under Secretary for Acquisition, Technology, and Logistics to ensure the standardization and periodic review of the expenditure levels for individual privatized units on a programmatic basis, to include general and flag officer quarters, with periodic reports to the office of the Secretary of Defense. |
Closed – Implemented
According to DOD documentation, housing privatization projects are monitored to protect government interests, including expenditure levels on individual units. The real control on spending is the project cash flows themselves as monitored by the private sector development entity that owns the housing. DOD will rely on private sector mechanisms to control costs but will review standardization of individual unit expenditure levels on a programmatic basis. GAO reported that such action, to the extent it incorporates general and flag officer housing, meets the intent of our recommendation.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to properly account for all gifts accepted and used to help renovate the Home of Commandants of the Marine Corps. |
Closed – Implemented
In November 2005, the Navy issued new guidance concerning the acceptance and control of gifts in conjunction with general and flag officers' quarters. The guidance requires the Navy and Marine Corps to provide an annual report showing the monetary gifts and the estimated dollar value of all non-monetary gifts.
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