Review of the Procedures Used To Value Air Force Plant No. 3, Tulsa, Oklahoma

An evaluation by the General Services Administration (GSA) and the Tulsa Airport Authority of Plant No. 3, located at Tulsa, Oklahoma, showed a large discrepancy in values. GAO was requested to review the procedures used to estimate the value of the plant. The plant consists of over 300 acres of land and 79 structures totaling more than 2.7 million square feet. The government-owned plant is currently operated by McDonnell-Douglas Corporation. The Air Force reported the plant excess in October 1972 with the condition that GSA negotiate a sale to McDonnell-Douglas for continued use as an aircraft fabrication and assembly facility. The Air Force specified that, as a condition of sale, the plant's existing capability for defense production be preserved for 5 years from the date title to the property is transferred to the contractor.