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Defense Infrastructure: Long-term Challenges in Managing the Military Construction Program

GAO-04-288 Published: Feb 24, 2004. Publicly Released: Feb 24, 2004.
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Highlights

The Department of Defense's (DOD) military construction program provides funding for construction projects in the United States and overseas, and funds most base realignment and closure costs. Recent Office of the Secretary of Defense (OSD) estimates indicate that it would cost as much as $164 billion to improve facilities to a level that would meet the department's goals. GAO was asked to report on the (1) steps OSD has taken to enhance program management, (2) process of prioritizing and resourcing military construction projects, and (3) advantages and disadvantages of increasing the current funding thresholds for constructing and repairing facilities.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress may wish to consider the advantages and disadvantages of increasing the military construction funding thresholds and operation and maintenance funding thresholds for unspecified minor military construction projects.
Closed – Implemented
In its report accompanying the National Defense Authorization Act of Fiscal Year 2007 (S. Rep. No. 109-254), the Senate Committee on Armed Services recommended a provision that would raise the threshold for unspecified minor military construction projects from $1.5 million to $2.5 million. It also recommended raising the threshold for unspecified minor military construction projects intended solely to correct a deficiency that is life-threatening, health-threatening, or safety-threatening from $3 million to $4 million.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To help strengthen OSD's management and improve the condition of DOD facilities, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics to complete the department's management tools, including the revision of defense facilities strategic plan, to provide a more consistent approach to managing facilities and planning construction projects and costs.
Closed – Implemented
Since our report, the Office of the Under Secretary of Defense for Installations and Environment has completed several models to manage and fund DOD facilities and installations and plan construction projects and costs. For example, the office implemented its Facilities Sustainment Model (FSM) to provide a more consistent approach to project annual costs for maintenance and repair activities necessary to keep a typical inventory of facilities in good working order over a 50-year service life. In addition in 2006, the office started using its Facilities Modernization Model (FMM), which provides a uniform mechanism for tracking investments in DOD's recapitalization programs that are financed primarily with the military services' and larger defense agencies' military construction funds. In addition, the office issued an update of its Defense Facilities Strategic Plan in 2005.
Department of Defense To help strengthen OSD's management and improve the condition of DOD facilities, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics to reevaluate the time frames for completing the three key objectives to reflect that there are competing funding priorities and that the process of realigning and closing domestic bases to reduce DOD's excess infrastructure and realigning overseas facilities will take several years to accomplish and could affect meeting facilities' investment goals.
Closed – Implemented
In comments on a draft of this report, DOD partially concurred with GAO's recommendation and indicated that some actions were being taken to address the recommendation. Recently, DOD issued it new Defense Installations Strategic Plan which extended the timeframes for meeting its facilities investment goals.
Department of Defense To help strengthen OSD's management and improve the condition of DOD facilities, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics to develop a mechanism for periodically reassessing military construction priorities for facility categories that fall outside the department's specific areas of emphasis to ensure that the risk of delaying proposed military construction projects with potential operational and quality of life impacts are being given appropriate consideration.
Closed – Implemented
In comments on a draft of this report, DOD partially concurred and indicated that actions were being taken to address elements of our recommendation. Since the report, the military services have periodically reassessed and revised their military construction priorities to ensure that proposed military construction projects address both potential operational and quality-of-life impacts.

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Topics

Federal fundsFunds managementMilitary facility constructionStrategic planningProgram managementPrioritizingConstruction costsCongressional oversightFunding increasesMilitary construction