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GAO discussed the General Services Administration's (GSA) implementation of: (1) its Federal Operations Review Model (FORM); and (2) recommendations to improve its leasing process. GAO noted that: (1) the GSA Inspector General (IG) determined that GSA implementation of the preliminary FORM phase generally followed the prescribed FORM process, but there were several weaknesses related to the consistent application of assumptions, the absence of relevant data, the appropriateness of certain cost estimates, and certain financial calculation errors; (2) the GSA IG reasonably determined that the initial FORM analysis data could not be relied on as the sole basis for making final decisions about privatizing or outsourcing specific services; (3) GSA has not completed the more in-depth phase of its FORM analysis; (4) the FORM process should permit GSA to better understand its business and the market place; (5) GSA has agreed to address GAO recommendations to improve its leasing process in its ongoing efforts to reform its real estate program, but it needs to show that any proposed reforms involve inherent risks, improve mission-support services, and provide a net cost-savings to taxpayers; and (6) GSA will need good performance data, adequate benchmarks, and effective oversight and measurement systems in making any major reforms.

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