Office of Personnel Management Should Defer Relocation of the Western Executive Seminar Center

GGD-84-80: Published: Jun 6, 1984. Publicly Released: Jun 6, 1984.

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Pursuant to a congressional request, GAO conducted a cost analysis of the proposed relocation of the Office of Personnel Management's (OPM) Western Executive Seminar Center from Denver to Grand Junction, Colorado.

GAO found that the OPM proposal to move the Center in fiscal year 1985 cannot be justified on cost grounds. GAO estimated that such a move could entail net additional costs of over $300,000 in the first year and over $100,000 in the second year of operation. Furthermore, the continuing costs of operating the Center in Grand Junction could exceed the Denver costs by over $80,000 each year. GAO noted that the General Services Administration has stated that finding a substitute tenant will be difficult and, therefore, the Government will have to pay for unused space until the Denver lease expires.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Director of OPM should not proceed with the proposal to relocate the Western Executive Seminar Center to Grand Junction, Colorado, in time to begin fiscal year 1985 operations.

    Agency Affected: Office of Personnel Management

  2. Status: Closed - Not Implemented

    Comments: OPM is making arrangements to resolicit bids for training space and food and lodging in Grand Junction.

    Recommendation: The Director of OPM should take advantage of the offer by the current contractor for the Denver site to negotiate reduced food and lodging costs.

    Agency Affected: Office of Personnel Management

  3. Status: Closed - Not Implemented

    Comments: OPM is making arrangements to resolicit bids for training space and food and lodging in Grand Junction.

    Recommendation: The Director of OPM should negotiate a new lease for the Center after March 31, 1986, on the basis of a detailed analysis of such factors as the design and suitability of the present space, alternatives available in Denver and elsewhere, and the costs of any relocation.

    Agency Affected: Office of Personnel Management

 

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