Defense Infrastructure: Continuing Challenges in Managing DOD Lodging Programs as Army Moves to Privatize Its Program
Highlights
The Department of Defense (DOD) transient lodging programs were established to provide quality temporary facilities for authorized personnel, and reduce travel costs through lower rates than commercial hotels. DOD has approximately 82,000 temporary duty (TDY) and permanent-change-of-station (PCS) rooms worldwide, and reported that it cost about $860 million in appropriated and nonappropriated funds to operate them in fiscal year 2005. While the Army plans to privatize its lodging in the United States, there are concerns as to whether these plans are cost-effective, and how they relate to DOD-wide lodging efforts. GAO was asked to address (1) how each military service and DOD manages, funds, and assesses the performance of its lodging programs to meet short- and long- term needs, and (2) the effect that lodging privatization would have on the costs to the Army and the ability to maintain and recapitalize facilities. GAO is also providing information on DOD's actions to implement prior recommendations regarding the lodging program. GAO obtained data from the Office of the Secretary of Defense, the military services and visited nine military installations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense for Personnel and Readiness in consultation with the Under Secretary of Defense for Acquisition, Technology, and Logistics to clarify their respective roles for establishing policy and overseeing the lodging program. |
Closed – Implemented
On April 26, 2007, the Office of the Under Secretary of Defense for Personnel and Readiness issued a memorandum on the DOD lodging program that clarifies the respective roles of the Under Secretary of Defense for Personnel and Readiness and the Under Secretary of Defense for Acquisition, Technology and Logistics. The memorandum states that it is in response to GAO's recommendation that the Under Secretary of Defense for Personnel and Readiness, in consultation with the Under Secretary of Defense for Acquisition, Technology and Logistics, clarify their respective roles for establishing policy and overseeing the lodging program. Thus, the intent of this recommendation has been met.
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| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense for Personnel and Readiness in consultation with the Under Secretary of Defense for Acquisition, Technology, and Logistics to update the DOD lodging program strategic plan, to include developing performance standards and measures to ensure that the goals of the lodging program strategic plan and Army plans to privatize its lodging are being achieved. |
Closed – Implemented
According to DOD documentation, in September 2008, the Office of the Under Secretary of Defense for Personnel and Readiness issued an updated DOD Lodging strategic plan for 2008-2013. The updated plan lists specific performance standards and provides guidance to the Military Services on how to measure performance for achieving the goals of the plan such as achieving a 72 percent hotel guest satisfaction index using a measuring system of rating guest responses on a scale of one to five. The updated strategic plan meets the intent of the GAO recommendation.
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