oversight

Federal Real Property: Strategic Partnerships and Local Coordination Could Help Agencies Better Utilize Space

Published by the Government Accountability Office on 2012-07-25.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

             United States Government Accountability Office

GAO          Report to the Chairman, Subcommittee on
             Federal Financial Management, Government
             Information, Federal Services, and International
             Security, Committee on Homeland Security and
             Governmental Affairs, U.S. Senate

July 2012
             FEDERAL REAL
             PROPERTY

             Strategic Partnerships
             and Local
             Coordination Could
             Help Agencies Better
             Utilize Space




GAO-12-779
                                                July 2012

                                                FEDERAL REAL PROPERTY
                                                Strategic Partnerships and Local Coordination
                                                Could Help Agencies Better Utilize Space
Highlights of GAO-12-779, a report to the
Chairman, Subcommittee on Federal Financial
Management, Government Information,
Federal Services, and International Security,
Committee on Homeland Security and
Government Affairs, U.S. Senate.

Why GAO Did This Study                          What GAO Found
GAO designated the federal                      The federal government owns facilities that are underutilized in locations where it
government’s management of its                  also leases space. In some cases, space within these government-owned
nearly 400,000 real property assets as          properties could be occupied by other government agencies. This is particularly
high-risk in part because of                    true for the U.S. Postal Service (USPS), for which declining mail volume and
overreliance on leasing and the                 operational changes have freed space in many facilities. However, this potential
retention of excess facilities. Real            for collocation of federal agencies is affected by such factors as the size,
property management is coordinated              location, and condition of the available space (see figure).
nationally by the FRPC—an
association of landholding agencies             Figure: Condition of Federally Owned Property with Underutilized Space
chaired by the Deputy Director for
Management of the Office of
Management and Budget (OMB). To
explore the potential to reduce leasing
by better utilizing owned properties,
GAO was asked to examine: (1) the
potential for collocation and the factors
that can affect that potential, (2) the
possible benefits of collocation, and (3)
the challenges associated with
collocation, and what solutions, if any,
can mitigate these challenges. GAO
reviewed property data and documents
from eight of the largest property-
holding agencies; laws, regulations
                                                Officials from various agencies said that, in some cases, collocation could result
and guidance; and prior GAO reports.            in more efficient service delivery and cost savings or avoidance. For example,
GAO also analyzed eight case study              underutilized USPS floor and retail window space could be used by other federal
markets of varying size and federal             agencies, generating space-use efficiencies for USPS and expanding citizen
agency presence, and interviewed                access to government services. Collocation could also help achieve agency
agency officials.                               synergies, such as shared technology infrastructure.

What GAO Recommends                             Agency officials said that strategic partnerships among federal agencies targeted
                                                to meet specific needs and a formal local coordination mechanism could mitigate
OMB should work with FRPC and                   certain challenges to collocation, including administrative and data challenges.
USPS to, among other things, (1) lead           Agencies have varying authorities to share available space in their properties and
the creation of strategic partnerships          differing capabilities to handle the administrative tasks associated with sharing
between GSA and other property-                 space. The General Services Administration (GSA), as the federal government’s
owning federal agencies with less               property manager, possesses the capability and experience to market properties
experience sharing real property, and           and manage leases on a large scale. Officials from other agencies suggested
(2) establish a mechanism (including
                                                that partnerships with GSA or a private entity could address some administrative
USPS) for local coordination to
                                                challenges and improve collocation efforts. However, the ability to identify
improve coordination and identify
specific opportunities to share space.          collocation opportunities is hindered by the lack of a formal information-sharing
OMB, GSA, and USPS generally                    mechanism. The Federal Real Property Council (FRPC) is a national, policy-
agreed with the recommendations. The            oriented body and, as such, does not manage the local-level negotiations that
details of agencies’ comments and               collocation would require. The FRPC established a database describing all
GAO’s response are addressed more               executive branch properties, but it was not designed to identify and manage
fully within the report.                        collocation opportunities, nor does it include USPS data. In contrast, local federal
                                                officials indicated that they possess detailed knowledge of specific properties
View GAO-12-779. For more information,          owned by their respective agencies and, with more structured local coordination,
contact David J. Wise at (202) 512-2834 or
wised@gao.gov.                                  could share that knowledge to support collocation efforts. GSA officials said that
                                                local councils were an effective method for sharing information.
                                                                                            United States Government Accountability Office
Contents


Letter                                                                                             1
                       Background                                                                  3
                       Underutilized Owned Federal Space Exists, but Size, Location, and
                         Condition Affect Colocation Potential                                     9
                       Colocation Could Yield Service-Delivery Efficiency and Cost-
                         Avoidance Benefits in Some Cases                                        12
                       Greater Inter-Agency Collaboration Could Mitigate Some
                         Challenges to Colocation                                                14
                       Conclusions                                                               24
                       Recommendations for Executive Action                                      25
                       Agency Comments                                                           25

Appendix I             Scope and Methodology                                                     27



Appendix II            Selected Leasing and Retention of Proceeds Authorities for
                       In-Scope Agencies                                                         30



Appendix III           Comments from the U.S. Postal Service                                     35



Appendix IV            Comments from the Department of Veterans Affairs                          36



Appendix V             GAO Contact and Staff Acknowledgments                                     39



Related GAO Products                                                                             40



Figures
                       Figure 1: Total Square Footage Comparison for Federal Civilian
                                Agencies’ Properties, Fiscal Years 2010 to 2012                   5
                       Figure 2: Examples of Vacant and Underutilized USPS Space                 10
                       Figure 3: GSA-Held Vacant Space in Dallas, Texas                          12




                       Page i                                        GAO-12-779 Federal Real Property
Figure 4: Vacant USPS Space in Easton, Pennsylvania, Requiring
         Renovation                                                      17
Figure 5: Building 1 at the Philadelphia Navy Yard: Exterior,
         Interior Unfinished, Interior Finished                          18
Figure 6: The Former Downtown Philadelphia USPS Mail
         Processing and Distribution Center, Now IRS Offices             20
Figure 7: Examples of Federally Held Spaces Described in the
         FRPP                                                            21
Figure 8: Examples of Spaces Used by Interior at a Leased Site           23




Page ii                                      GAO-12-779 Federal Real Property
Abbreviations

CPRA          Civilian Property Realignment Act
DEA           Drug Enforcement Administration
DHS           Department of Homeland Security
DOD           Department of Defense
DOE           Department of Energy
FBF           Federal Buildings Fund
FBI           Federal Bureau of Investigation
FRPC          Federal Real Property Council
FRPP          Federal Real Property Profile
FSA           Farm Service Agency
GPRA          Government Performance and Results Act
GRPIS         Governmentwide Real Property Information Sharing program
GSA           General Services Administration
IG            Inspector General
IRS           Internal Revenue Service
NRCS          Natural Resources Conservation Service
NPS           National Park System
OIG           Office of Inspector General
OMB           Office of Management and Budget
SSA           Social Security Administration
UFC           Unified Facilities Criteria
USDA          Department of Agriculture
USPS          U. S. Postal Service
VA            Department of Veterans Affairs


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Page iii                                                 GAO-12-779 Federal Real Property
United States Government Accountability Office
Washington, DC 20548




                                   July 25, 2012

                                   The Honorable Thomas R. Carper
                                   Chairman
                                   Subcommittee on Federal Financial Management
                                   Government Information, Federal Services, and International Security
                                   Committee on Homeland Security and Governmental Affairs
                                   United States Senate

                                   Dear Mr. Chairman:

                                   The federal government’s real property inventory includes nearly 400,000
                                   owned and leased buildings located throughout the country. 1 As we have
                                   reported, the federal government retains more owned property than it
                                   needs while simultaneously leasing property from other entities, a
                                   practice that is not cost-efficient in the long run, resulting in millions of
                                   dollars of additional costs to the federal government. 2 In addition to an
                                   overreliance on leasing, federal agencies continue to face long-standing
                                   problems, such as excess and underutilized property and protecting
                                   federal facilities. Because of these issues, we have designated the
                                   management of federal real property as a high-risk area. 3

                                   There are current efforts promoting colocation—moving federal
                                   operations from one stand-alone location to a federal location occupied
                                   by another entity—and real property management reform. For example,
                                   several versions of the Civilian Property Realignment Act (CPRA) are
                                   pending in Congress and are aimed at, among other things, reducing the
                                   operating and maintenance costs of federal civilian real properties by



                                   1
                                    According to the Federal Real Property Council’s most recent Federal Real Property
                                   Report, which provided summary-level reports on governmentwide real property data, as
                                   of September 30, 2010. This data is reported at the asset level, not the lease level,
                                   meaning that while portions of a building are leased, the entire building is counted as an
                                   asset.
                                   2
                                    GAO, Federal Real Property: Proposed Civilian Board Could Address Disposal of
                                   Unneeded Facilities, GAO-11-704T (Washington, D.C.: June 9, 2011).
                                   3
                                    GAO’s high-risk series identifies areas at high risk due to their greater vulnerabilities to
                                   waste, fraud, abuse, and mismanagement or major challenges associated with their
                                   economy, efficiency, or effectiveness. See GAO, High-Risk Series: An Update,
                                   GAO-11-278 (Washington, D.C.: Feb. 16, 2011).




                                   Page 1                                                      GAO-12-779 Federal Real Property
disposing of unneeded properties; realigning other properties by
consolidating, colocating, and reconfiguring space; and by realizing other
operational efficiencies. 4 A Senate bill, the Federal Real Property Asset
Management Reform Act of 2012, would 1) impose new duties on federal
agencies to maintain inventory controls and establish goals for reducing
inventories of underutilized properties, 2) establish and direct the Federal
Real Property Council (FRPC)—chaired by the Office of Management
and Budget (OMB)—to establish an asset management plan and submit
an asset disposal plan, and 3) require the Administrator of General
Services Administration (GSA) and the FRPC to establish and maintain a
database of agency real property. 5 Additionally, postal reform legislation
includes a specific provision related to colocation between USPS and
other federal agencies, establishing and tasking the FRPC with identifying
federal agency field offices that could be colocated with USPS and other
civilian properties and permitting federal agencies to lease space for their
field offices from USPS. 6 In May 2012, OMB also released a
memorandum directing agencies to offset any growth in new building
space with corresponding decreases through consolidations, colocations,
or disposal of space from the agency’s inventory. 7

To help inform the discussion, you asked us to examine issues
surrounding opportunities for colocating federal agencies by which the
federal government could reduce privately owned, leased space by
consolidating onto underutilized federally owned property. This report
addresses:

(1) whether the potential for colocation exists and, if so, what factors can
affect that potential;

(2) the potential benefits of colocation; and




4                                                             th
 E.g., Civilian Property Realignment Act of 2012, S. 2232, 112 Cong. (2012); Civilian
                                           th
Property Realignment Act, H.R. 1734, 112 Cong. (2011).
5                                                                            th
 Federal Real Property Asset Management Reform Act of 2012, S. 2178, 112 Cong.
(2012).
6   st                                               th
21 Century Postal Service Act of 2012, S. 1789, 112 Cong. (2012).
7
 Office of Management and Budget, Promoting Efficient Spending to Support Agency
Operations (M-12-12). (May 11, 2012).




Page 2                                                    GAO-12-779 Federal Real Property
                        (3) the challenges associated with colocation and what solutions, if any,
                        might help mitigate these challenges.

                        To examine these issues, we analyzed real property data from eight
                        agencies with substantial domestic property portfolios: the Departments
                        of Agriculture (USDA), Defense (DOD), Energy (DOE), Homeland
                        Security (DHS), Interior (Interior), and Veterans Affairs (VA); GSA; and
                        the U. S. Postal Service (USPS). Using available real property data
                        provided by the agencies and ranging from fiscal years 2007 to 2012,
                        supplemented by interviews with regional and national level agency
                        officials, we selected eight U.S. markets in which we conducted case
                        studies. We selected these eight markets to represent markets of various
                        sizes, geographic regions, owned and leased federal properties, and
                        agencies present. In the case study markets with DOD properties, we
                        focused only on DOD properties not located on military bases. We also
                        reviewed relevant legislation and analyzed data and documentation
                        provided by the agencies.

                        We conducted this performance audit from July 2011 through July 2012 in
                        accordance with generally accepted government-auditing standards.
                        Those standards require that we plan and perform the audit to obtain
                        sufficient, appropriate evidence to provide a reasonable basis for our
                        findings and conclusions based on our audit objectives. We believe that
                        the evidence obtained provides a reasonable basis for our findings and
                        conclusions based on our audit objectives. Further details on our scope
                        and methodology can be found in appendix I.



Background
Federal Real Property   The federal government’s vast real property inventory reflects the
                        diversity of agencies’ missions and includes office buildings, prisons, post
                        offices, courthouses, laboratories, and border stations. The Federal Real
                        Property Profile (FRPP) is a database of owned and leased space held by
                        executive branch agencies. It is maintained by GSA on behalf of the




                        Page 3                                         GAO-12-779 Federal Real Property
                         FRPC, although FRPC controls access to the data. 8 In 2010, FRPP data
                         indicated that 24 executive branch agencies held about 3.35-billion
                         square feet of building space. 9 These agencies reported that 79 percent
                         of the total reported building space was federal-government owned; 17
                         percent was leased, and 4 percent of the space was otherwise
                         managed. 10 The eight agencies we reviewed—USDA, DOD, DOE, DHS,
                         DOI, VA, GSA, and USPS—reported holding over 3.32-billion square feet
                         of building space or about 99 percent of reported square footage.


Owned and Leased Space   GSA and USPS are the largest civilian holders of federally owned
                         property. They hold the largest amounts of space, by square foot, of the
                         civilian agencies that we examined. As noted previously, we excluded
                         much of DOD’s property from the scope of our review because of the
                         security requirements of traditional military bases, which would make
                         colocation with other agencies unlikely. GSA and USPS together hold
                         more square footage—almost 660-million square feet—than the other
                         agencies we reviewed, excluding DOD, combined—over 454-million



                         8
                          We recently reported that the FRPC has not followed sound data collection practices—
                         related to data consistency, performance measures, collaboration, and data reporting—
                         when collecting FRPP data, that would help it collect these data in a way that is sufficiently
                         consistent and accurate to be useful making property management decisions. See GAO,
                         Federal Real Property: Improved Data and a National Strategy Needed to Address the
                         Excess and Underutilized Property Problem, GAO-12-645 (Washington, D.C.: June 20,
                         2012). We recommended that GSA develop a plan to improve the FRPP consistent with
                         sound data collection practices. Nonetheless, we also reported that the FRPP is
                         sufficiently reliable to be used in a general sense to track assets. As such, for this report,
                         we used FRPP data for the limited purposes of identifying case study markets and
                         summarizing agency-level statistics on owned and leased property.
                         9
                          Only the 24 federal agencies subject to the Chief Financial Officers (CFO) Act of 1990
                         are required to submit real property data at the constructed asset level to the FRPP on an
                         annual basis under Executive Order 13327. GSA is counted as one of the 24 agencies.
                         The Departments of Education, Housing and Urban Development; the Small Business
                         Administration; the Nuclear Regulatory Commission; and the Social Security
                         Administration obtain and use real estate through GSA. Consequently, GSA reports those
                         real property assets. DOD is also counted as a reporting agency and reports property data
                         for the Army, Air Force, Navy, and Corps of Engineers. USPS is not required to submit
                         real property data to the FRPP and is therefore not included in this data. See, Federal
                         Real Property Council, FY 2010 Federal Real Property Report: An Overview of the U.S.
                         Federal Government’s Real Property Assets.
                         10
                           Otherwise-managed buildings may be owned by a state government or by a foreign
                         government that has granted rights for use to the federal government in an arrangement
                         other than a lease agreement.




                         Page 4                                                     GAO-12-779 Federal Real Property
square feet. (See fig. 1.) Additionally, both agencies have a wide national
presence—GSA-held properties exist in over 750 markets and USPS-
held property is in almost 36,000 cities and towns.

Figure 1: Total Square Footage Comparison for Federal Civilian Agencies’
Properties, Fiscal Years 2010 to 2012




a
DOD data are excluded from this analysis.
Note: This analysis includes active buildings only; land and structures or property that are disposed,
excess, or inactive are not included. USDA, DOE, GSA-“leased,” Interior, VA data are from fiscal year
2010; DHS and GSA-“owned” data are from fiscal year 2011, and USPS data are from fiscal year
2012.


Federal agencies, particularly GSA in its role as broker and property
manager to the civilian portion of the U.S. government, rely on costly
leasing, and the number of federal government leases has increased in
recent years. The civilian federal agencies we reviewed held leases in
close to 41,000 assets covering nearly 324-million square feet of space,
with GSA and USPS leasing the most space. 11 Nearly all of GSA’s leases
are for other tenant agencies—for example, its four largest customers in
the leased inventory are the Department of Justice, DHS, the Social
Security Administration (SSA), and Department of Treasury (Treasury)—
based upon those agencies’ identified needs. According to GSA’s annual
portfolio report, since fiscal year 2008, its leased inventory has
experienced faster growth than its owned inventory. We have reported
that over time GSA has relied heavily on operating leases to meet new
long-term needs because it lacks up-front funding needed to purchase




11
  USDA, DOE, GSA-”leased,” Interior, VA data are from fiscal year 2010, DHS and GSA-
“owned” data are from fiscal year 2011, and USPS data are from fiscal year 2012.




Page 5                                                          GAO-12-779 Federal Real Property
             buildings or space. 12 In addition, GSA has reported operational losses
             related to leasing, once indirect overhead expenses have been allocated,
             in recent years. 13, 14


GSA’s Role   GSA is authorized by law to acquire, manage, utilize, and dispose of real
             property for most federal agencies. GSA is able to enter into lease
             agreements for up to 20 years that the Administrator of GSA considers to
             be in the interest of the federal government and necessary to
             accommodate a federal agency. 15 GSA uses this authority to lease space
             on behalf of many federal government agencies.

             In 2004, the administration added managing federal real property to the
             President’s Management Agenda and the President issued an executive
             order, applicable to 24 executive departments and agencies 1)
             establishing FRPC and 2) requiring FRPC to work with GSA to establish
             and maintain a single, comprehensive database describing the nature,
             use, and extent of all federal real property held by executive branch
             agencies, except when otherwise required for reasons of national
             security. 16 FRPC worked with GSA to create the FRPP to meet this



             12
              See, for example, GAO, General Services Administration: Comparison of Space
             Acquisition Alternatives—Leasing to Lease-Purchase and Leasing to Construction,
             GAO/GGD-99-49R (Washington, D.C.: Mar. 12, 1999) and General Services
             Administration: Opportunities For Cost Savings in the Public Buildings Area,
             GAO/T-GGD-95-149 (Washington, D.C.: July 13, 1995).
             13
               See GAO, Federal Real Property: Overreliance on Leasing Contributed to High-Risk
             Designation, GAO-11-879T (Washington, D.C.: Aug. 4, 2011). GSA income statement
             losses within the leased inventory, as measured by funds from operations (FFO),
             increased dramatically in recent years to $102.9 million in fiscal year 2009 before falling to
             $64.8 million in fiscal year 2010. FFO is derived by calculating the amount of revenue
             remaining after deducting all direct and indirect expenses (excluding depreciation)
             associated with operating a building, and provides the Federal Buildings Fund with
             contributions to capital towards future investments in renovations, repairs, and new
             construction.
             14
               According to GSA, losses in leased inventory are partially attributable to the accounting
             treatment of different rent payments and fees in accordance with financial statement
             reporting requirements, but the agency should still be able to cover all the extra costs with
             the administrative fee it charges tenant agencies.
             15
               40 U.S.C. § 585.
             16
               Federal Real Property Asset Management, Exec. Order No. 13327, 69 Fed. Reg. 5897
             (Feb. 6, 2004).




             Page 6                                                     GAO-12-779 Federal Real Property
                  requirement. FRPC is chaired by the Deputy Director for Management of
                  OMB and is composed of Senior Real Property Officers from the 24
                  executive departments and agencies, the Controller of OMB, the
                  Administrator of GSA, and any other full-time or permanent part-time
                  federal officials or employees as deemed necessary by the Chairman of
                  the Council. The order does not apply to USPS and FRPC does not work
                  directly with USPS on the management of its real property. 17 These
                  efforts notwithstanding, we have previously reported that the federal
                  government continues to face a number of challenges to effectively
                  managing its real property. 18 In particular, we have reported on
                  challenges to disposing of excess properties, making better use of
                  properties that are underutilized, and reducing overreliance on leasing. 19


USPS Challenges   USPS, which is an independent establishment of the executive branch, is
                  authorized to sell, lease, or dispose of property and is exempt from most
                  federal laws dealing with real property and contracting. 20 Although
                  declining mail volume and changes to its operations have resulted in
                  excess capacity and facility space throughout the postal network, our
                  recent work has shown that USPS faces challenges, such as legal
                  restrictions and local stakeholder influences, that have limited its ability to


                  17
                    The executive order applies to the Departments of Agriculture (USDA), Commerce,
                  Defense, Education, Energy, Health and Human Services, Homeland Security, Housing
                  and Urban Development, Interior, Justice, Labor, State, Transportation, the Treasury,
                  Veterans Affairs (VA); the Environmental Protection Agency; the National Aeronautics and
                  Space Administration; the United States Agency for International Development; the
                  General Services Administration (GSA); the National Science Foundation, the Nuclear
                  Regulatory Commission; the Office of Personnel Management; the Small Business
                  Administration; and the Social Security Administration.
                  18
                    See, for example, GAO, Federal Real Property: Progress Made Toward Addressing
                  Problems, but Underlying Obstacles Continue to Hamper Reform, GAO-07-349
                  (Washington, D.C.: Apr. 13, 2007); Federal Real Property: Proposed Civilian Board Could
                  Address Disposal of Unneeded Facilities, GAO11-704T (Washington, D.C.: June 9, 2011)
                  and High-Risk Series: An Update, GAO-11-278 (Washington, D.C.: February 2011).
                  19
                    Section 102 of Title 40 of the United States Code defines excess property as “property
                  under the control of a federal agency that the head of the agency determines is not
                  required to meet the agency’s needs or responsibilities.” GSA’s federal management
                  regulations defines underutilized property as “an entire property or portion thereof, with or
                  without improvements, which is used—(a) Irregularly or intermittently by the accountable
                  Executive agency for current program purposes of that agency; or (b) For current program
                  purposes that can be satisfied with only a portion of the property.” 41 C.F.R. § 102-75.50.
                  20
                   39 U.S.C. §§ 401, 410.




                  Page 7                                                     GAO-12-779 Federal Real Property
close postal facilities in order to restructure its retail and processing
network. 21 For example, USPS has often faced resistance from affected
employees, communities, and elected officials when it has attempted to
consolidate its processing operations and networks or close mail-
processing facilities because of concerns about possible effects on
service, employees, and communities. USPS recently announced that it
will maintain existing retail locations, with modified operating hours. As a
result of these issues, USPS has more space than it needs. Our recent
work has also shown that USPS faces a deteriorating financial condition.
For example, at the end of fiscal year 2011, the USPS had incurred a
$5.1-billion loss for the year, had $2 billion remaining on its $15-billion
borrowing limit, 22 and projects it will be unable to make its $5.5 billion
scheduled retiree health benefits payment to the federal government. 23 In
addition, USPS was conceived as a financially self-sufficient entity, but its
revenues do not cover costs at about 80 percent of its retail facilities. 24




21
 GAO, U.S. Postal Service: Challenges Related to Restructuring the Postal Service’s
Retail Network,GAO-12-433 (Washington, D.C.: Apr. 17, 2012).
22
  USPS is authorized to borrow $3 billion annually and a maximum of $15 billion. 39
U.S.C. § 2005(a). USPS borrows money from the U.S. Treasury via the Federal Financing
Bank.
23
  Originally due at the end of fiscal year 2011, USPS’s $5.5-billion retiree health benefit
payment was delayed until August 1, 2012. Pub. L. No. 112-74 (Dec. 23, 2011).
24
  According to the Postal Reorganization Act of 1970, “[p]ostal rates and fees shall
provide sufficient revenue so that the total estimated income and appropriations to the
Postal Service will equal as nearly as practicable total estimated costs of the Postal
Service.” Pub. L. No. 91-375, 84 Stat. 760 (Aug. 12, 1970) (formerly 39 U.S.C. § 3621).
See also, Payments on Unfunded Liability by the U.S. Postal Service to Civil Service
Retirement Fund: Hearing Before the Committee on Post Office and Civil Service, United
States Senate, on H.R. 29, 93rd Cong. 73-74 (statement by Post Office and Civil Service
Committee Chairman Gale McGee).




Page 8                                                     GAO-12-779 Federal Real Property
Underutilized Owned
Federal Space Exists,
but Size, Location,
and Condition Affect
Colocation Potential
Underutilized Owned     The federal government owns facilities that are underutilized in locations
Space                   where it also leases space for different purposes. This is particularly true
                        for USPS, as declining mail volume and changes in operations have freed
                        space in many owned facilities. While there are problems with using
                        governmentwide data to identify underutilized space, as will be discussed
                        later in this report, we observed underutilized space held by multiple
                        federal entities in the case study markets we visited for this report. For
                        example, in each case study market, we observed one or more cases of
                        vacant or underutilized space in post offices, including both offices and
                        space on the processing floor, that officials said could be re-configured
                        and physically separated from USPS operations (see fig. 2.)




                        Page 9                                          GAO-12-779 Federal Real Property
Figure 2: Examples of Vacant and Underutilized USPS Space




In some cases, spaces within these underutilized owned properties could
be used by other government agencies. According to a recent report by
the USPS Office of Inspector General (OIG) related to post office
utilization, excess floor and retail window space exists nationwide that
could be used by other government agencies or used to perform
transactions on behalf of other government agencies. 25 The USPS OIG’s
office also conducted several regional studies examining excess USPS
space and noted a correlation between space leased by GSA and the
ability of USPS to significantly accommodate federal space needs. For
example, one of those studies estimated that of the USPS districts


25
  United States Postal Service, Office of Inspector General. 21st Century Post Office:
Opportunities to Share Excess Resources – Management Advisory, DA-MA-12-003
(Arlington, VA: Feb. 9, 2012.)




Page 10                                                  GAO-12-779 Federal Real Property
                            reviewed, USPS excess space may accommodate 147 of 175 (or 84
                            percent) of agencies’ current federal leases, and noted that GSA paid
                            considerably more per square foot than the value assigned to USPS
                            space. However, the Inspector General (IG) did not determine whether
                            the excess space identified was usable for sharing with other agencies, in
                            part because USPS systems and policies do not identify usable areas,
                            and noted that more information would be necessary to determine
                            whether USPS’s excess space would be suitable for another government
                            tenant.


Space Size, Location, and   We observed several attributes that could affect using underutilized space
Condition Affect            for colocation. These attributes included size, location, and condition,
Colocation Potential        which would likely render some spaces more appropriate for sharing than
                            others. Much of the underutilized space we observed was small—only
                            several hundred to a few thousand square feet. We also observed
                            underutilized space that was not contiguous. Both of these attributes
                            could limit those spaces’ suitability for effective colocation. Furthermore,
                            underutilized space that we observed varied in terms of its location within
                            facilities. For example, GSA and VA officials described having some
                            space that is less desirable to potential tenants. Although we observed
                            generally high occupancy in GSA’s multi-agency federal buildings, GSA
                            officials showed us some space they said is not easily leased because of
                            its location, such as a first floor interior office bordering the building’s
                            maintenance hallways or windowless basement spaces, and noted that
                            these extra spaces can remain in GSA buildings when an agency does
                            not require the entirety of a vacant space. VA officials noted similar
                            issues, in that empty or available space at its campuses is often located
                            in buildings surrounded by other VA buildings, which can make it harder
                            for outside parties to access and use.

                            Additionally, we observed underutilized space in a wide range of
                            conditions, from rundown to newly renovated, which could also affect
                            colocation options. GSA officials said that a variety of physical aspects of
                            the space may factor into the desirability of the space for colocation,
                            including ceiling height, support column size, lighting, and windows. For
                            example, Figure 3 shows interior office space in a GSA-held federal
                            building in downtown Dallas that GSA officials told us has been vacant for
                            years, a vacancy that they attributed to the lack of natural light and the
                            large support columns that make it difficult to place workstations.




                            Page 11                                         GAO-12-779 Federal Real Property
                         Figure 3: GSA-Held Vacant Space in Dallas, Texas




                         Federal officials we spoke with indicated that colocation could result in
Colocation Could         improved government operations through increased efficiencies for
Yield Service-Delivery   service access or delivery to the public in some cases. For example, VA
                         officials stated that their incentive for colocation is to expand veterans’
Efficiency and Cost-     medical care efficiently, and that sharing space with other agencies with
Avoidance Benefits in    similar missions, such as the U.S. Army, could help achieve that goal and
Some Cases               avoid duplicating medical capacity. Moreover, according to a recent report
                         by the USPS OIG, the Postal Service would benefit from sharing post
                         office space with other government entities while generating revenue and
                         increasing efficiency by expanding citizen access to government
                         operations. For example, USPS currently has interagency agreements to
                         provide non-postal government services, such as accepting passport
                         applications and Selective Service registration forms. DHS officials
                         discussed broadly how DHS is often colocated with USDA, the Drug
                         Enforcement Administration (DEA) and the Federal Bureau of
                         Investigation (FBI) because those agencies have complementary
                         missions to certain DHS operations. These colocations take place in both



                         Page 12                                            GAO-12-779 Federal Real Property
GSA-held and DHS-held space. While not inter-agency, Interior officials
described how the agency has tried to colocate its various bureaus for the
sake of agency synergies, especially since the public often does not
distinguish among the roles of the bureaus. They noted that integrating
services in space or function is a good practice that could occur across
agencies. USDA officials also said that the colocation of the Farm Service
Agency (FSA) and the Natural Resources Conservation Service (NRCS)
provided synergies because they are able to share databases and pass
information more readily between the two entities.

Federal officials also said that, under certain circumstances, colocation
could result in cost savings or avoidance for the federal government. For
example, DHS officials described the department’s examination of
colocation opportunities within the department, and cited one case it
studied where cost savings could result from productivity gains, reduced
redundancy, and cost avoidance. USPS officials in multiple locations
noted USPS would benefit from revenue from a federal agency tenant.
For example, USPS could share underutilized floor and retail window
space with other government agencies, generating revenue to offset
some building costs. Additionally, GSA officials described the motivation
to accomplish savings from consolidation and colocation as responsible
asset stewardship.

While federal officials seemed to agree that colocation can produce
efficiencies, data limitations, such as the lack of a national, multi-agency
asset-management tool as discussed in the next section, make it difficult
to estimate the financial and nonfinancial benefits from colocating federal
agencies, because the quality of any estimate is a direct function of the
input data. Moreover, colocation will not always be more cost-effective
than leasing in the short run, particularly if the costs to reconfigure owned
space are high. For example, DOD officials said that it cost $20 million to
renovate a vacant 70,000-square-foot warehouse within the Naval
Support Facility in suburban north Philadelphia and move the Navy
Human Resources Service Center there from leased commercial space.
They estimated that the payback period for the move would exceed 30
years. Information on cost and service delivery improvements from
colocations can help agencies decide whether to proceed with
colocations and aid agencies in evaluating completed colocations.
Generally, however, agencies lack the tools—such as a standardized
approach for quantifying costs and benefits—to determine whether, and
to what extent, colocations will generate or are generating intended
savings or financial benefits, metrics that are key to helping agencies
manage their resources. Moreover, some federal officials indicated that


Page 13                                          GAO-12-779 Federal Real Property
                            quantitatively measuring the nonfinancial results of colocations, such as
                            intergovernmental collaboration, was difficult to do because these are
                            difficult concepts to monetize, as they can be subjective. We found that
                            agencies generally lacked the tools to measure the costs and benefits of
                            colocation efforts. Our work on capital decision making has shown that
                            establishing an analytical framework for review, approval, and selection of
                            projects; evaluating a project’s results; and incorporating lessons learned
                            into the decision-making process are all key principles and practices of
                            such an effort. 26 Establishing a framework with a mixture of financial and
                            nonfinancial benefits, such as service delivery improvements, allows
                            entities to better evaluate performance.


                            Agency officials said that greater collaboration—through strategic
Greater Inter-Agency        partnerships among federal agencies targeted to meet specific needs and
Collaboration Could         a formal local coordination mechanism—could mitigate some
                            administrative, financial and data challenges to colocation. Agencies’
Mitigate Some               varying real property-management authorities can create administrative
Challenges to               challenges, which officials said could be addressed through a strategic
Colocation                  partnership with GSA. Acquiring the needed up-front financing for repair
                            or renovation remains challenging for agencies, although some agencies
                            have secured up-front financing through partnerships with private entities.
                            Agencies face challenges identifying colocation opportunities because of
                            limitations with available data and the lack of a coordination mechanism.
                            Officials from a few agencies suggested that structured local or regional
                            coordination could best identify opportunities where the missions of
                            various agencies could be “matched” to appropriate space because of
                            local and regional federal officials’ more detailed knowledge of local
                            needs, conditions, and opportunities.


Administrative Challenges   Agencies have varying real property management authorities related to
                            colocation, including the ability to share property and retain the proceeds,
                            and this variation can create administrative challenges for agencies
                            seeking to increase inter-agency colocation opportunities. For example,
                            USPS can share its property with private or government entities and retain




                            26
                              GAO, Executive Guide: Leading Practices in Capital Decision-Making, GAO/AIMD-99-32
                            (Washington, D.C.: Dec. 1998).




                            Page 14                                              GAO-12-779 Federal Real Property
the proceeds, 27 but other agencies may not be able to do so. 28 DOE
officials reported that the agency is allowed, under certain circumstances,
to share government-owned real property, but it is not allowed to retain the
proceeds, unless provided for in its annual appropriation. In addition, even
if an agency has the authority to share real property, it may not be well-
prepared to handle tasks such as setting lease rates and managing the
financial arrangements for renovations. For example, GSA officials said
some agencies do not know what rates to charge for the space they would
share with other agencies. Moreover, Navy officials said agencies with the
authority to share properties can face administrative challenges managing
the many various sources of funds potentially needed should extensive
renovations be necessary to bring properties up to usable condition.

Officials from six agencies as well as commercial real estate officials said
that to overcome some of these administrative challenges and improve
colocation efforts, agencies could address specific challenges through a
strategic partnership with GSA. They said GSA has administrative
structures and experiences that could benefit less-experienced agencies.
For example, GSA, as the federal government’s property manager,
already possesses the capability to market and price properties and
manage leases on a large scale. Our previous work on the Government
Performance and Results Act (GPRA) 29 also supports the idea that
strategic partnerships could be beneficial to overcoming these
challenges. We have reported that cross-government agency
collaboration can produce more public value than can be produced when
agencies act alone. 30 Specifically, agencies can enhance and sustain




27
  USPS is authorized to hold, maintain, sell, lease, or otherwise dispose of such property
or any interest therein. 39 U.S.C. § 401(5). USPS is authorized to retain and use all
revenues that it receives. 39 U.S.C. § 2401(a).
28
  Appendix II provides more information on selected sharing and retention of proceeds
authorities granted to the agencies we included in our review.
29
  Both Congress and the executive branch have recognized the need for improved
collaboration across the federal government. Accordingly, in January 2011 the almost two-
decades-old Government Performance and Results Act of 1993 (GPRA) was updated with
the GPRA Modernization Act of 2010 (GPRAMA). Pub. L. No. 111-352, 124 Stat. 3866
(2011). GPRAMA amends the Government Performance and Results Act of 1993, Pub. L.
No. 103-62, 107 Stat. 285 (1993).
30
 See GAO, Results-Oriented Government: Practices That Can Help Enhance and Sustain
Collaboration among Federal Agencies, GAO-06-15 (Washington, D.C.: Oct. 21, 2005).




Page 15                                                  GAO-12-779 Federal Real Property
their collaborative efforts by engaging in a variety of practices 31 such as
establishing policies and procedures to operate across agency
boundaries, by, for example, developing interagency handbooks that
define common standards, policies, and procedures. During our review,
officials from four agencies suggested that increased collaboration
through some of these practices could help mitigate some of the
administrative challenges of colocation. As a potential approach for these
types of strategic partnerships, OMB officials described GSA’s effort to
work with selected agencies to develop strategic plans for future property
needs and identify potential areas for consolidation.

USPS has some experience collaborating with other agencies on real
property issues, and as it explores further options to better utilize excess
space, strategic partnerships with other agencies, particularly GSA, could
help USPS overcome administrative challenges that may be impeding
colocation. A February 2012 USPS OIG report said USPS has experience
with intergovernmental collaboration because it already shares space in
federal buildings and conducts transactions for other federal entities. 32
For example, the Mansfield, Ohio, federal building hosts a post office as
well as offices of SSA, the Internal Revenue Service (IRS), and the U.S.
Department of Labor. The report noted that because many postal facilities
are near many GSA-leased properties, sharing space could potentially
lower overall federal lease costs. The report recognized USPS’s need to
optimize its network through internal consolidations and closures, but said
USPS could use its underutilized resources better through external
collaboration. USPS management agreed with the OIG recommendation
to develop and implement a strategy to address these findings.




31
  Such practices include (1) define and articulate a common outcome; (2) establish
mutually reinforcing or joint strategies; (3) identify and address needs by leveraging
resources; (4) agree on roles and responsibilities; (5) establish compatible policies,
procedures, and other means to operate across agency boundaries; (6) develop
mechanisms to monitor, evaluate, and report on results; (7) reinforce agency
accountability for collaborative efforts through agency plans and reports; and (8) reinforce
individual accountability for collaborative efforts through performance management
systems. See GAO-06-15.
32
  United States Postal Service, Office of Inspector General. 21st Century Post Office:
Opportunities to Share Excess Resources – Management Advisory, DA-MA-12-003
(Arlington, VA: February 9, 2012.)




Page 16                                                   GAO-12-779 Federal Real Property
Financial Challenges                   During our site visits, we found federally owned properties that could be
                                       made available for leasing; however, many of the spaces would need
                                       substantial repair or renovation, and acquiring the needed up-front
                                       financing remains challenging for agencies. 33 For example, we saw
                                       several USPS properties in which the available space required substantial
                                       renovation to replace old carpet, peeling paint, and outdated fixtures, and
                                       to repair water damage (see fig. 4). However, USPS’s deteriorating
                                       financial condition may limit the costs it can incur to renovate its facilities
                                       prior to sharing them with other agencies. 34

Figure 4: Vacant USPS Space in Easton, Pennsylvania, Requiring Renovation




                                       33
                                         For capital projects, including substantial repairs and renovations, agencies must record
                                       budget authority for the full cost of an asset up front. Such up-front funding provides
                                       recognition for commitments that are embodied in budgetary decisions and maintains
                                       governmentwide fiscal control. However, providing budget authority for the large up-front
                                       costs of capital assets creates challenges in an era of resource constraints. See, GAO,
                                       Budget Issues: Alternative Approaches to Finance Federal Capital, GAO-03-1011
                                       (Washington, D.C.: Aug. 21, 2003).
                                       34
                                         See, for example, GAO-12-433, GAO-11-759T, and GAO-11-278.




                                       Page 17                                                  GAO-12-779 Federal Real Property
                                           We also observed spaces that would need potentially costly specialized
                                           repairs or renovations. For example, some of the U.S. Navy properties we
                                           visited at the mixed-use Philadelphia Navy Yard (see fig. 5) would need
                                           asbestos abatement and water damage repair. Navy officials told us that
                                           the properties could be leased from the Navy by other government
                                           agencies, and that some agencies have made inquiries to do so.
                                           However, they said that the agencies were alarmed by the complexity and
                                           costs of repairs, which effectively ended any further consideration of the
                                           properties for colocation. Had any agencies pursued leasing the
                                           properties, Navy officials said they likely would lack sufficient up-front
                                           financing. In addition to general and specialized renovation costs, Navy
                                           officials said DOD Unified Facilities Criteria (UFC) requirements prescribe
                                           certain antiterrorism measures, such as blast-proof windows and security
                                           gates, which can further elevate the costs of renovations to DOD-owned
                                           buildings, both on and off-base.

Figure 5: Building 1 at the Philadelphia Navy Yard: Exterior, Interior Unfinished, Interior Finished




                                           The up-front costs of renovations present a challenge to GSA that hinders
                                           its colocation efforts. GSA regional officials said that financing
                                           renovations is the most serious challenge they face in improving the
                                           utilization of their assets. Regional officials said they have considered
                                           acquiring vacant USPS facilities that could support colocation, but have
                                           been reluctant to do so in part because of the up-front cost of the
                                           extensive renovations needed to make the properties usable. As we have
                                           previously reported, in recent years budgeting and appropriations
                                           decisions, made by the executive branch and Congress, have limited the
                                           amount of resources made available from the Federal Buildings Fund to




                                           Page 18                                                GAO-12-779 Federal Real Property
GSA to fund real property operations, acquisition, and maintenance. 35
GSA headquarters officials told us that these limitations make it
challenging for the agency to effectively manage its portfolio and result in
delayed or cancelled projects.

In an era of resource constraints and competing priorities, some agencies
have secured up-front financing through partnerships with private entities.
Federal officials suggested that such strategic partnerships have helped
agencies respond to financial challenges associated with renovations,
although our previous work has shown this option generally adds
expense. Both GSA and USPS cited previous IRS consolidations into
underutilized USPS properties in Kansas City and Philadelphia that were
arranged using private financing to overcome a lack of up-front federal
funding. These arrangements involved multiple stakeholders and were
large-scale, complex arrangements designed to replace outdated regional
IRS offices (see fig. 6). 36 Private real estate development and GSA
regional officials said that if GSA had access to up-front funding to
renovate the building, the Philadelphia arrangement would not have been
necessary, and the property could have remained in the federal
inventory. 37 This outcome would have made redevelopment more cost-
efficient for the government in the long-term, because as we have



35
  GAO, Federal Buildings Fund: Improved Transparency and Long-term Plan Needed to
Clarify Capital Funding Priorities, GAO-12-646 (Washington, D.C.: Jul. 12, 2012).
36
   In downtown Philadelphia, GSA had considered purchasing USPS’ large, underutilized
30th St. Mail Processing and Distribution Center Station, but was dissuaded by the
substantial cost of the renovation that would be needed for the building, which was
constructed in 1935. Instead, in April 2007, USPS signed a deal with a private developer
to renovate nearby facilities and, in August 2007, signed a memorandum of understanding
with GSA for private redevelopment of the building into IRS offices. In September 2008,
USPS moved its retail operations and distribution unit out of 30th St. into its new facilities.
When the 30th St. renovation was complete, IRS moved into the property (see fig. 6). In
exchange for financing the $184-million renovation, the developer received all interest and
rights from USPS for the 30th St. land, building, and a nearby 1,661-space parking
garage, and until August 25, 2030, will receive lease payments from GSA, who in turn will
receive rent from IRS.
37
  The decision to lease rather than own space for federal operations is often influenced by
factors other than cost-effectiveness, including budget issues. Federal budget-scoring
rules require that budget authority for ownership options be recorded fully up front in the
budget to appropriately reflect the government’s commitment. For GSA operating leases,
however, only the budget authority needed to cover the annual lease payments is
required. This reduces the up-front funding commitment but generally costs the federal
government more over time. See GAO-11-879T.




Page 19                                                     GAO-12-779 Federal Real Property
                  reported, renovations financed by the private sector will generally cost
                  more than those financed by Treasury borrowing. 38

                  Figure 6: The Former Downtown Philadelphia USPS Mail Processing and
                  Distribution Center, Now IRS Offices




Data Challenges   The only national-level, multi-agency real property database—the
                  FRPP—was not designed to be an active asset management system. 39
                  As such, it does not possess the level of detail necessary to support the



                  38
                   See GAO-03-1011.
                  39
                    The FRPP was designed to describe the nature, use, and extent of federal real property
                  held by executive branch agencies, except when otherwise required for reasons of
                  national security. Federal Real Property Asset Management, Exec. Order No. 13327, 69
                  Fed. Reg. 5897 (February 6, 2004).




                  Page 20                                                 GAO-12-779 Federal Real Property
                                        identification of colocation opportunities. The FRPP can provide basic
                                        descriptive information about the government’s federal property holdings,
                                        such as address, square footage and facility type; however, colocation
                                        decisions would require more data elements than would be practical to
                                        add to the FRPP. For example, the FRPP provides square footage
                                        information, but it does not provide information on orientation or use of
                                        space. We visited a DHS-held site where most of the facility was
                                        underground and much of the unoccupied space was used by
                                        environmental systems such as air filtration units and pumps that could
                                        not be removed. (See fig. 7.) The FRPP does not reveal that the facility is
                                        underground, nor does it convey the substantial challenges to
                                        reconfiguring the space. Similarly, we found that one building under
                                        renovation was characterized as “underutilized” in the FRPP. While not
                                        technically incorrect, characterizing this space as underutilized can be
                                        misleading because the simple utilization designation does not
                                        necessarily indicate if the space can be immediately occupied or used for
                                        colocation.

Figure 7: Examples of Federally Held Spaces Described in the FRPP




                                        As a result, local and regional federal officials are generally better
                                        positioned than headquarters officials to manage the colocation process
                                        because of their more detailed knowledge of local needs, conditions, and



                                        Page 21                                        GAO-12-779 Federal Real Property
opportunities. We found that detailed property knowledge necessary to
facilitate colocations was concentrated at the regional and local levels,
rather than at headquarters. When we asked for detailed information
about specific properties, we were referred to local and regional federal
officials, who were knowledgeable about specific sites and facilities.
Some headquarters officials were familiar with attempts at colocation and
could describe overall situations, but they were not the primary contacts
for these efforts, nor could they readily describe the properties’ attributes
or local office needs. In general, local and regional federal officials said
that they knew property details—such as space configuration, access
routes, and parking availability—that would be important for facilitating
colocations. 40 In addition, FRPC, which created the FRPP database, is a
national, policy-oriented body. As such, the scope of FRPC’s mission
does not include managing the local-level negotiations that colocation
would require.

The detailed property knowledge held by local federal officials is
important for ensuring an appropriate match between the agency that
owns the property and the agency that would lease space. Officials from
many agencies reported that matching the location of available property
to the mission and security needs of the agency searching for space is an
important consideration; for example, DOE’s need for isolated, remote
sites as compared to VA’s interest in sites readily accessible to veterans.
However, officials noted that that there are no universal requirements
regarding their respective agencies’ property needs—rather, the property
needs vary across the country in response to mission needs. In some
cases, agencies have operational requirements that would make
colocation inappropriate if the potential tenant and potential lessor did not
share the same mission needs. For example, USPS officials noted the
Postal Service’s need to keep mail secure and separate from potential
tenant agencies or members of the public who may need to access the
facility. Additionally, officials from DOD told us that in some
circumstances their security requirements would make them ill-suited to
share space with other agencies, such as when public access would be




40
  Although some agencies possess databases with detailed property information, we
found that local and regional federal officials still used their personal knowledge. For
example, one GSA property manager told us that several specific rooms were better for
storage than tenants because janitors used the access hallway to bring the entire
building’s trash to the dumpsters.




Page 22                                                  GAO-12-779 Federal Real Property
                                         required. However, in instances where mission needs were similar,
                                         potential tenants might see enhanced security as desirable.

                                         In other cases, an agency’s mission may dictate the need for a
                                         specialized facility that could make colocation inappropriate. For example,
                                         USDA officials in a few regions told us that farmers often drove farm
                                         vehicles, including tractors, to Service Center locations and that in these
                                         cases, underground parking in a federal building would be problematic. In
                                         addition, we visited a leased Interior site that required a blacksmith and
                                         carpentry shop, cold storage for artifacts, and parking for large
                                         maintenance vehicles, such as wood-chippers and industrial mowers (see
                                         photos in fig. 8 below). An Interior official said that these needs would
                                         have to be taken into account to share space. None of these details are
                                         included in the FRPP, but local and regional officials from several
                                         agencies noted that they can speak readily on how mission needs and
                                         facility details may impact colocation.

Figure 8: Examples of Spaces Used by Interior at a Leased Site




                                         Officials from several agencies acknowledged that property knowledge is
                                         sometimes communicated informally. However, various officials noted
                                         that the lack of a systematic mechanism to share information hinders any
                                         efforts to colocate. Officials from a few agencies suggested that
                                         structured local or regional coordination could best identify opportunities
                                         where the missions of various agencies could be “matched” to
                                         appropriate space. Several local officials who showed us vacant federal
                                         spaces said there is currently no online or formal mechanism they can
                                         use to share vacancy details with officials from other agencies who might
                                         need space. A previous effort at local coordination—the Governmentwide



                                         Page 23                                        GAO-12-779 Federal Real Property
              Real Property Information Sharing program (GRPIS)—experienced some
              success, according to GSA officials, which they attributed to connections
              made at the local level. The program was tasked with encouraging and
              facilitating the sharing of real property information among federal
              agencies, and it revolved around the formation of real property councils
              within major federal communities nationwide. GSA officials said that local
              councils were an effective method for sharing information. However,
              officials said the program became essentially inactive after responsibility
              for the program was transferred within GSA and local connections were
              lost.


              Colocating federal agencies into government-owned space represents an
Conclusions   opportunity to improve government operations while simultaneously
              addressing two of the federal government’s long-standing real-property
              management challenges: reducing over-reliance on costly leasing and the
              presence of underutilized owned property. Our analysis of eight markets
              shows that there are underutilized owned properties near areas where the
              government also leases space for other purposes. However, colocations
              are far more complicated than just matching the square feet needed with
              the square feet available. Agencies’ mission needs and building-specific
              issues that include security, condition, configuration, and use must align
              for the colocation to fully succeed. FRPC has coordinated federal real
              property actions for almost a decade at the national level, but detailed
              local knowledge of agency missions and facility needs combined with
              systematic communication channels are needed to match owners with
              compatible tenants.

              Once matched, numerous capacity and administrative hurdles remain as
              challenges to successful colocation. GSA is the only agency that has a
              core mission of managing real property. Several landholding agencies
              lack the experience and administrative tools necessary to effectively
              market and manage their property as a landlord. Creating cross-agency
              relationships with GSA to assist in tasks such as setting rental rates,
              crafting lease documents, renovating space, and otherwise managing the
              property would improve consistency of approach and allow each agency
              to remain focused on its core mission.

              Colocation is not always the right answer. We found that agencies can
              force relocations into ill-suited locations, pushing the financial breakeven
              point out decades into the future. Without the tools to measure the
              benefits and costs of colocation efforts or proposals, policy makers are
              unable to effectively weigh colocation as an option. Understanding the


              Page 24                                         GAO-12-779 Federal Real Property
                      financial costs and savings associated with colocation efforts, as well as
                      the nature and extent of synergies and improved services, will allow
                      agencies to better demonstrate that the benefits can be worth the costs of
                      renovating and moving an agency out of privately leased space.


                      To promote colocation across agencies, the Director of the Office of
Recommendations for   Management and Budget (OMB) should work with the Federal Real
Executive Action      Property Council (FRPC) and the U.S. Postal Service (USPS) to
                      implement GAO’s three recommendations:

                         Establish a mechanism, which includes USPS, for local coordination
                          in markets with large concentrations of federal agencies to identify, on
                          a case by case basis, specific opportunities to share space and
                          improve coordination of real property use across agencies.
                         Develop strategic partnerships and a coordinated strategy with
                          assigned roles and tasks between the General Services
                          Administration (GSA) and other federal landholding agencies (USPS
                          specifically) with less experience sharing real property.
                         Develop and implement tools, along with supporting guidance, to
                          measure, evaluate, and disseminate information on financial and
                          nonfinancial benefits, such as service delivery improvements, from
                          colocating federal agencies.

                      We provided a draft of this report to OMB, GSA, USPS, VA, USDA, DOE,
Agency Comments       Interior, DHS, DOD, and IRS for review and comment. In commenting on
                      a draft of this report, officials from OMB said that they agreed with the
                      report’s findings, conclusions, and recommendations and offered
                      technical comments that we incorporated as appropriate. They said that
                      OMB has little power over how USPS manages its real property assets.
                      The officials also said that GSA has already started looking at
                      consolidating tenant field operations within its portfolio, and suggested
                      that the report clarify the role that we recommend GSA takes in facilitating
                      consolidations. USPS agreed with the facts and findings in the report and
                      provided comments regarding our recommendations. USPS’s comments
                      are contained in appendix III. GSA agreed with our recommendations and
                      provided technical comments that we incorporated as appropriate. DHS
                      and VA provided clarifying technical comments which we incorporated,
                      where appropriate. VA’s comments are contained in appendix IV. USDA,
                      DOE, Interior, DHS, DOD, and IRS did not provide comments.




                      Page 25                                         GAO-12-779 Federal Real Property
As agreed with your office, unless you publicly announce the contents of
this report earlier, we plan no further distribution until 30 days from the
report date. At that time, we will send copies to the Secretary of
Agriculture, the Secretary of Defense, the Secretary of Energy, the
Administrator of General Services, the Secretary of Homeland Security,
the Secretary of the Interior, the Commissioner of Internal Revenue, the
Director of the Office of Management and Budget, the Postmaster
General, and the Secretary of Veterans Affairs. In addition, the report will
be available at no charge on GAO’s Web site at http://www.gao.gov.

If you or your staff have any questions, please contact me at
(202) 512-2834 or wised@gao.gov. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last page
of this report. GAO staff who made key contributions to this report are
listed in appendix V.

Sincerely yours,




David J. Wise
Director, Physical Infrastructure Issues




Page 26                                         GAO-12-779 Federal Real Property
Appendix I: Scope and Methodology
             Appendix I: Scope and Methodology




             Our objective was to review the issues surrounding colocation—that is,
             moving federal operations from one stand-alone location to a federal
             location occupied by another entity. 1 To accomplish this, we addressed
             (1) if the potential for cross-agency colocation exists, what factors can
             affect that potential; (2) the potential benefits of colocation; and (3) the
             challenges associated with colocation, and what solutions, if any, can
             mitigate these challenges. During the course of our work we used the
             Federal Real Property Portfolio (FRPP), a government-wide database of
             owned and leased space, maintained by GSA on behalf of the Federal
             Real Property Council (FRPC). We recently reported that the FRPC has
             not followed sound data collection practices—related to data consistency,
             performance measures, collaboration, and data reporting—when
             collecting FRPP data, that would help them collect these data in a way
             that is sufficiently consistent and accurate to be useful making property
             management decisions. 2 We recommended that GSA develop a plan to
             improve the FRPP consistent with sound data collection practices.
             Nonetheless, we also reported that the FRPP can be used in a general
             sense to track assets. As such, for this report, we used FRPP data for the
             limited purposes of identifying agencies within our scope, selecting case
             study markets and summarizing agency-level statistics on owned and
             leased property.

             We used the 2010 Federal Real Property Portfolio (FRPP) summary
             report and U.S. Postal Service property data to identify the agencies
             which hold the largest amounts of property. We then limited our scope to
             8 of the top 10 agencies, which include the Departments of Agriculture
             (USDA), Defense (DOD), Energy (DOE), Homeland Security (DHS), the
             Interior (Interior), Veterans Affairs (VA), the General Services
             Administration (GSA), and the U.S. Postal Service (USPS). 3




             1
               For the purposes of this review, we focused on one aspect of colocation, defined as
             moving government operations from privately-owned leased spaces to spaces owned by
             the federal government. Although colocation can also be used to describe agencies
             sharing space leased from the private sector, that interpretation is not used for this report
             2
              GAO, Federal Real Property: Improved Data and a National Strategy Needed to Address
             the Excess and Underutilized Property Problem, GAO-12-645 (Washington, D.C.: June
             20, 2012).
             3
              We did not include the Department of Justice (DOJ) or the Department of State (State) in
             our scope because some of their holdings were notably inappropriate for colocation,
             including State’s international holdings and DOJ’s prisons.




             Page 27                                                    GAO-12-779 Federal Real Property
Appendix I: Scope and Methodology




To determine the factors that can affect cross-agency consolidation, we
analyzed detailed data and interviewed agency officials about the
property holdings in 8 specific U.S. markets: Allentown PA, Cleveland
OH, Dallas TX, Kansas City KS, Kerrville TX, Philadelphia PA, San
Antonio TX, and Waco TX. To select these areas and provide nationwide
statistics on owned and leased facilities, we analyzed basic inventory
data, including location, occupant, size, owned/leased data from the
FRPP for the 7 agencies in our scope that are represented in the FRPP.
USPS, which is not represented in the FRPP, provided data from its
internal systems. While case studies are not generalizable, we selected
diverse markets in terms of market size, geographic region, owned and
leased federal properties, and agencies present. Although we used GSA-
defined markets as a guideline, to better reflect the interests of this review
we delineated markets by using an estimated 60-minute commute radius,
and selected the borders based on professional judgment (for example, in
more rural areas, following the direction of development.) We identified
the primary cities of large and medium markets using GSA data, and then
selected small markets within driving distance of a large or medium-sized
market in order to facilitate travel.

Because there are no reliable real property cost and benefit data, we
primarily relied on interviews with federal agency officials at the national,
regional, and local levels to determine the potential benefits of colocation.
We focused on benefits that were mentioned by officials from more than
one agency and more than one market. We also reviewed relevant GAO
and other reports and documents, including USPS Office of Inspector
General reports, and laws, regulations, and guidance.

To determine the challenges associated with colocation and what
solutions, if any, could mitigate these challenges, we visited facilities that
were both owned and leased, with a particular emphasis on owned offices
and warehouses that were categorized as underutilized. 4 We did not
include properties categorized as inactive, excess, or disposed in our
scope, and we did not include land. Using this information, we conducted
an analysis to identify key challenges that agencies face when making
property decisions and the options, if any, for mitigating those challenges.


4
 During site visits we excluded DOD properties that agency officials identified as being on
secure military installations, as these properties are subject to the Base Realignment and
Closure Act (BRAC), and have greater security requirements than average federal
buildings.




Page 28                                                   GAO-12-779 Federal Real Property
Appendix I: Scope and Methodology




We also interviewed agency officials at the national, regional, and local
level, and reviewed documentation provided to us regarding specific
properties. We did not examine any screenings for other potential uses of
real property, such as use for the homeless or public benefit. To
determine which challenges were the most pressing, we only included
challenges which were raised in more than one market and by more than
one agency.

We conducted this performance audit from July 2011 through July 2012 in
accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.




Page 29                                       GAO-12-779 Federal Real Property
Appendix II: Selected Leasing and Retention
                       Appendix II: Selected Leasing and Retention of
                       Proceeds Authorities for In-Scope Agencies



of Proceeds Authorities for In-Scope
Agencies
                       This list is not intended to be inclusive of all of an agency’s real property
                       authorities; there may be other authorities not included below that may
                       authorize colocation.


Agency               Relevant statute and description of authority
Agriculture (USDA)   Enhanced Use Lease Authority Pilot Program
                     7 U.S.C. § 3125a note
                     The Secretary of Agriculture is authorized to establish a pilot program and lease nonexcess
                     real property at the Beltsville Agricultural Research Center and the National Agricultural
                     Library to any individual or entity, including agencies or instrumentalities of State or local
                     governments, if the Secretary determines that the lease is consistent with, and will not
                     adversely affect, the mission of the agency administering the property; will enhance the use
                     of the property; will not permit any portion of the property or facility to be used for the public
                     retail or wholesale sale of merchandise or residential development; will not permit the
                     construction or modification of facilities financed by nonfederal sources to be used by an
                     agency, except for incidental use; and will not include any property or facility required for
                     any agency purpose without prior consideration of the needs of the agency. Consideration
                     for any lease shall be for fair market value and for cash. The Secretary is authorized to
                                                                                                                     a
                     enter into leases until June 18, 2013, and the term of the lease shall not exceed 30 years.

                     Retention of Proceeds/Enhanced Use Lease Authority Pilot Program
                     7 U.S.C. § 3125a note
                     Consideration for leases shall be deposited in a capital asset account, which is available
                     until expended, without further appropriation, for maintenance, capital revitalization, and
                     improvements to the department’s properties and facilities at the Beltsville Agricultural
                     Research Center and the National Agricultural Library.
Defense (DOD)b       Leases of Non-Excess Property of Military Departments
                     10 U.S.C. § 2667
                     The Secretary of a military department is authorized to lease nonexcess real property under
                     the control of the department that is not needed for public use if the Secretary considers the
                     lease to be advantageous to the United States and upon such terms that will promote the
                     national defense or be in the public interest. The term of the lease may not be more than 5
                     years, unless the Secretary determines the term should be longer to promote the national
                     defense or to be in the public interest. Lease payments shall be in cash or in-kind
                     consideration for an amount not less than fair market value. In-kind consideration includes
                     maintenance, protection, alteration, repair, or environmental restoration of property or
                     facilities; construction of new facilities; providing facilities; or providing or paying for utility
                     services.

                     Retention of Proceeds/Leases of Non-Excess Property of Military Departments
                     10 U.S.C. § 2667
                     Proceeds from leases of a military department are deposited into a special account in the
                     Treasury and are available to the Secretary of that military department for such activities as
                     maintenance, protection, alteration, or environmental restoration of property or facilities;
                     construction of new facilities; lease of facilities; or payment of utility services. At least 50
                     percent of the proceeds received shall be available for activities at the military installations
                     where the proceeds are derived. Prior to fiscal year 2005, any amounts deposited in a
                     special account from the disposition of property were only available as provided in an



                       Page 30                                                        GAO-12-779 Federal Real Property
                                          Appendix II: Selected Leasing and Retention of
                                          Proceeds Authorities for In-Scope Agencies




Agency                                  Relevant statute and description of authority
                                        appropriation act. Beginning in fiscal year 2005, any amounts deposited into a special
                                        account from the disposition of property are appropriated and available for obligation or
                                                                                                           c
                                        available to the Secretary without additional congressional action.

                                        Conveyance or Lease of Existing Property and Facilities
                                        10 U.S.C. § 2878
                                        The Secretary concerned is authorized to convey or lease property or facilities, including
                                        ancillary supporting facilities to eligible entities at such consideration the Secretary
                                        concerned considers appropriate for the purposes of the alternative authority for acquisition
                                                                                                                                 d
                                        and improvement of military housing and to protect the interests of the United States.

                                        Retention of Proceeds/Conveyance or Lease of Existing Property and Facilities
                                        10 U.S.C. § 2883
                                        Proceeds from the conveyance or lease of property or facilities under 10 U.S.C. § 2878
                                        shall be credited to the Department of Defense Housing Improvement Funds. Proceeds may
                                        be used to carry out activities with respect to the alternative authority for the acquisition and
                                        improvement of military housing, including activities required in connection with the
                                        planning, execution, and administration of contracts subject to such amounts as provided in
                                        appropriation acts.
Energy (DOE)                            Leasing of Property
                                        42 U.S.C. § 7256
                                        The Secretary of Energy is authorized to lease acquired real property located at a DOE
                                        facility that is to be closed or reconfigured and is not needed by DOE at the time the lease is
                                        entered into if the Secretary considers the lease to be appropriate to promote national
                                        security or is in the public interest. The term of the lease may be up to 10 years, with an
                                        option to renew the lease for another 10 years, if the Secretary determines that a renewal of
                                        the lease will promote national security or be in the public interest. Lease payments may be
                                        in cash or in-kind consideration and may be for an amount less than fair market value. In
                                        kind consideration may include services relating to the protection and maintenance of the
                                        leased property.

                                        Retention of Proceeds/Leasing of Property
                                        42 U.S.C. § 7256
                                        To the extent provided in advance in appropriations acts, the Secretary is authorized to use
                                        the funds received as rents to cover administrative expenses of the lease, maintenance and
                                        repair of the leased property, or environmental restoration activities at the facility where the
                                        leased property is located.
General Services Administration (GSA)   Disposition of Real Property
                                        40 U.S.C. § 543
                                        The Administrator of GSA is authorized to dispose of surplus real property by sale,
                                        exchange, lease, permit, or transfer for cash, credit, or other property.

                                        Conveyance of Property Consolidated Appropriations Act of 2005, Pub. L. No. 108-447,
                                        §412, 118 Stat. 2809, 3259 (2004)
                                        The Administrator of GSA, notwithstanding any other provision of law, is authorized to
                                        convey by sale, lease, exchange, or otherwise, including through leaseback arrangements,
                                        real and related personal property, or interests therein.




                                          Page 31                                                     GAO-12-779 Federal Real Property
                                      Appendix II: Selected Leasing and Retention of
                                      Proceeds Authorities for In-Scope Agencies




Agency                              Relevant statute and description of authority
                                    Retention of Proceeds/Conveyance of Property Consolidated Appropriations Act of 2005,
                                    Pub. L. No. 108-447, § 412, 118 Stat. 2809, 3259 (2004)
                                    Net proceeds from the disposition of real property are deposited in GSA’s Federal Buildings
                                    Fund (FBF) and are used for GSA real property capital needs to the extent provided in
                                    appropriations acts.
Homeland Security (DHS/U.S. Coast   General Powers of the Commandant, U.S. Coast Guard
Guard)                              14 U.S.C. § 93(a)(13)
                                    The U.S. Coast Guard may rent or lease real property, not required for immediate use, for a
                                    period not exceeding 5 years. Payments received from the rental or lease, less amount of
                                    expenses incurred (exclusive of governmental personal services), to be deposited in the
                                    Treasury.
Interior (DOI)                      Leases for National Park System (NPS)
                                    16 U.S.C. § 1a-2(k)(1)-(4)
                                    Interior is authorized to enter into a lease with any person or governmental entity for the use
                                    of buildings and associated property administered by the Secretary as part of the National
                                    Park System. Leases shall be for fair market value rental. Buildings and associated property
                                    leased shall be used for an activity that is consistent with the purposes established by law
                                    for the unit in which the building is located; shall not result in degradation of the purposes
                                    and values of the unit; and shall be compatible with National Park Service programs.

                                    Retention of Proceeds/Leases for NPS
                                    16 U.S.C. § 1a-2(k)(5)
                                    Rental payments must be deposited into a special Treasury account where the availability of
                                    funds is not subject to an appropriation act. Funds are available for infrastructure needs
                                    such as facility refurbishment, repair and replacement, infrastructure projects associated
                                    with park resource protection, and direct maintenance of the leased buildings and
                                    associated properties.

                                    Leases for Housing NPS employees
                                    16 U.S.C. § 17o
                                    Interior is authorized where necessary and justified to make available employee housing, on
                                    or off the lands under the administrative jurisdiction of the National Park Service, and to rent
                                    or lease such housing to field employees of the National Park Service at rates based on the
                                    reasonable value of the housing.

                                    Housing for NPS employees
                                    16 U.S.C. § 17o
                                    Subject to the appropriation of necessary funds in advance, Interior is authorized to lease
                                    federal lands and interests in land to qualified persons for up to 50 years for the construction
                                    of field employee quarters.

                                    Presidio of San Francisco
                                    16 U.S.C. § 460bb note
                                    The Presidio Trust is authorized to enter into leases with any person, firm, association,
                                    organization, corporation or governmental entity necessary to carry out its authorized
                                    activities. The Presidio Trust is authorized to establish procedures for lease agreements for
                                    the use and occupancy of Presidio facilities. The National Park Service or any other Federal



                                      Page 32                                                     GAO-12-779 Federal Real Property
                          Appendix II: Selected Leasing and Retention of
                          Proceeds Authorities for In-Scope Agencies




Agency                  Relevant statute and description of authority
                        agency is authorized to enter into leases with the Presidio Trust which are necessary and
                        appropriate.
Postal Service (USPS)   USPS Real Property Authorities
                        39 U.S.C. § 401(5)
                        The Postal Service is authorized to acquire in any legal manner, real property or any
                        interest therein, as it deems necessary or convenient in the transaction of its business and
                        to hold, maintain, sell, lease, or otherwise dispose of such property or any interest therein.

                        USPS Real Property Authorities
                        39 U.S.C. § 401(6)
                        The Postal Service is authorized to construct, operate, lease, and maintain buildings,
                        facilities, or equipment, and to make other improvements on any property owned or
                        controlled by it.

                        USPS Retention of Proceeds/Real Property Authorities
                        39 U.S.C. §§ 2003, 2401
                        Proceeds are deposited into the Postal Service Fund and remain available to the Postal
                        Service without fiscal year limitation to carry out the purposes, functions, and powers of the
                        Postal Service. All revenues received by the Postal Service are appropriated to the Postal
                        Service and are available without additional congressional action.
Veterans Affairs (VA)   VA Transfer Authority – Capital Asset Fund
                        38 U.S.C. § 8118
                        The Secretary of VA is authorized to transfer real property under VA’s control or custody to
                        another department or agency of the United States, to a state or political subdivision of a
                        state, or to any public or private entity, including an Indian tribe until December 31, 2018.
                        The property must be transferred for fair market value, unless it is transferred to a homeless
                        provider. Property under this authority cannot be disposed of until the Secretary determines
                        that the property is no longer needed by the department in carrying out its functions and is
                        not suitable for use for the provision of services to homeless veterans by the department
                        under the McKinney-Vento Act.

                        Authority to Outlease
                        38 U.S.C. § 8122
                        The Secretary may lease for a term not exceeding 3 years lands or buildings, or parts or
                        parcels thereof, belonging to the United States and under the Secretary’s control. A lease
                        made to any public or nonprofit organization may provide for the maintenance, protection, or
                        restoration, by the lessee, of the property leased, as a part or all of the consideration for the
                        lease. Prior to the execution of any such lease, the Secretary shall give appropriate public
                        notice of the Secretary’s intention to do so in the newspaper of the community in which the
                        lands or buildings to be leased are located. The proceeds from such leases (less expenses
                        for maintenance, operation, and repair of buildings leased for living quarters) shall be turned
                        over to the Treasury of the United States as miscellaneous receipts.

                        Retention of Proceeds/Transfer Authority
                        38 U.S.C. § 8118
                        Proceeds from the transfer of real property are deposited into the VA Capital Asset Fund
                        and, to the extent provided in advance in appropriations acts, may be used for property




                          Page 33                                                     GAO-12-779 Federal Real Property
           Appendix II: Selected Leasing and Retention of
           Proceeds Authorities for In-Scope Agencies




Agency   Relevant statute and description of authority
         transfer costs such as demolition, environmental remediation, and maintenance and repair;
         costs associated with future transfers of property under this authority; costs associated with
         enhancing medical care services to veterans by improving, renovating, replacing, updating,
         or establishing patient care facilities through minor construction projects; and costs
         associated with the transfer or adaptive use of property that is under the Secretary’s
         jurisdiction and listed on the National Register of Historic Places.
           Source: GAO analysis
           a
            This pilot program was enacted in the Food, Conservation, and Energy Act of 2008, Pub. L. No. 110-
           246, § 7409, 112 Stat. 1651, 2014-2016 (2008).
           b
            Our review of DOD did not include real property at a military installation designated for closure or
           realignment under a base closure law. Therefore, for purposes of this appendix we have excluded
           DOD authorities relating to base closure or realignment. Additionally, while some authorities in this
           enclosure, such as 10 U.S.C. § 2667, contain subsections relating to base closure and realignment,
           for purposes of this enclosure we are referring to the other subsections of the statute.
           c
           Department of Defense Appropriations Act for Fiscal Year 2005, Pub. L. No. 108-287, § 8034, 118
           Stat. 951, 978 (2004).
           d
            This authority does not apply to property or facilities located on or near a military installation
           approved for closure under a base closure law. See 10 U.S.C. § 2878(b).




           Page 34                                                             GAO-12-779 Federal Real Property
Appendix III: Comments from the U.S. Postal
              Appendix III: Comments from the U.S. Postal
              Service



Service




              Page 35                                       GAO-12-779 Federal Real Property
Appendix IV: Comments from the
             Appendix IV: Comments from the Department
             of Veterans Affairs



Department of Veterans Affairs




             Page 36                                     GAO-12-779 Federal Real Property
Appendix IV: Comments from the Department
of Veterans Affairs




Page 37                                     GAO-12-779 Federal Real Property
Appendix IV: Comments from the Department
of Veterans Affairs




Page 38                                     GAO-12-779 Federal Real Property
Appendix V: GAO Contact and Staff
                  Appendix V: GAO Contact and Staff
                  Acknowledgments



Acknowledgments

                  David J. Wise, (202) 512-2834 or wised@gao.gov.
GAO Contact
                  In addition to the contact named above, Keith Cunningham (Assistant
Staff             Director); Jessica A. Evans; Colin Fallon; Gary Guggolz; Alison Hoenk;
Acknowledgments   Hannah Laufe; SaraAnn Moessbauer; Joshua Ormond; Susan Sachs;
                  and Crystal Wesco made key contributions to this report.




                  Page 39                                       GAO-12-779 Federal Real Property
Related GAO Products
             Related GAO Products




             Federal Real Property: National Strategy and Better Data Needed to
             Improve Management of Excess and Underutilized Property.
             GAO-12-645. Washington, D.C.: June 20, 2012.

             Federal Buildings Fund: Improved Transparency and Long-term Plan
             Needed to Clarify Capital Funding Priorities. GAO-12-646. Washington,
             D.C.: July 12, 2012.

             U.S. Postal Service: Postal Service: Challenges Related to Restructuring
             the Postal Service’s Retail Network. GAO-12-433. Washington, D.C.:
             April 17, 2012.

             Decennial Census: Census Bureau and Postal Service Should Pursue
             Opportunities to Further Enhance Collaboration. GAO-11-874.
             Washington, D.C.: September 30, 2011.

             Federal Real Property: Overreliance on Leasing Contributed to High-Risk
             Designation. GAO-11-879T. Washington, D.C.: August 4, 2011.

             Federal Real Property: Proposed Civilian Board Could Address Disposal
             of Unneeded Facilities. GAO-11-704T. Washington, D.C.: June 9, 2011.

             Federal Real Property: Progress Made on Planning and Data, but
             Unneeded Owned and Leased Facilities Remain. GAO-11-520T.
             Washington, D.C.: April 6, 2011.

             High-Risk Series: An Update. GAO-11-278. Washington, D.C.:
             Feb. 16, 2011.

             VA Real Property: VA Emphasizes Enhanced-Use Leases to Manage Its
             Real Property Portfolio. GAO-09-776T. Washington, D.C.: June 10, 2009

             Federal Real Property: Authorities and Actions Regarding Enhanced Use
             Leases and Sale of Unneeded Real Property. GAO-09-283R.
             Washington, D.C.: February 17, 2009.

             Federal Real Property: Strategy Needed to Address Agencies’ Long-
             standing Reliance on Costly Leasing. GAO-08-197. Washington, D.C.:
             January 24, 2008.

             Federal Real Property: Progress Made Toward Addressing Problems, but
             Underlying Obstacles Continue to Hamper Reform. GAO-07-349.
             Washington, D.C.: April 13, 2007.



(542190)
             Page 40                                       GAO-12-779 Federal Real Property
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