VA Health Care: Improved Planning Needed for Management of Excess
Real Property (29-JAN-03, GAO-03-326).				 
                                                                 
The Department of Veterans Affairs (VA) has changed from a	 
hospital-based system to primary reliance on outpatient care. As 
a result, VA expects that the number of unneeded buildings will  
increase. Veterans' needs could be better served if VA finds ways
to minimize resources devoted to these buildings. VA must have an
effective process to find alternate uses or dispose of unneeded  
property. In August 2002, VA completed a pilot test for 	 
realigning its health care system in the Great Lakes network. The
pilot identified 30 buildings that are no longer needed to	 
provide health care to veterans. VA is currently studying how to 
realign assets in its 20 remaining networks. GAO was asked to	 
review VA's management of unneeded buildings in its Great Lakes  
network.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-326 					        
    ACCNO:   A05971						        
  TITLE:     VA Health Care: Improved Planning Needed for Management  
of Excess Real Property 					 
     DATE:   01/29/2003 
  SUBJECT:   Federal property management			 
	     Fixed price contracts				 
	     Health care facilities				 
	     Indefinite delivery contracts			 
	     Property disposal					 
	     Real property					 
	     Veterans hospitals 				 
	     VA Capital Asset Realignment for			 
	     Enhanced Services					 
                                                                 

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GAO-03-326

Report to the Honorable John D. Rockefeller IV, U. S. Senate

United States General Accounting Office

GAO

January 2003 VA HEALTH CARE Improved Planning Needed for Management of
Excess Real Property

GAO- 03- 326

The Great Lakes network has developed or implemented alternative use or
disposal plans for 21 of the 30 unneeded, vacant buildings. VA has leased
10 of the buildings to the Chicago Medical School and is negotiating a
lease for 3 buildings with Catholic Charities of Chicago. Four buildings
were demolished, and 4 buildings will be demolished in order to construct
new facilities or to expand an existing cemetery.

The network identified three obstacles that hinder alternative use or
planning for the remaining buildings:

* VA has been unable to find organizations interested in using the vacant,
unneeded buildings due primarily to their location or physical condition.

 VA may spend more to demolish buildings than it would spend to maintain
the buildings as is.

 VA is reluctant to transfer disposal responsibility for the buildings to
the General Services Administration, primarily because (1) VA would incur
costs for environmental and other requirements that could exceed potential
savings through avoidance of routine maintenance costs, and (2) any
proceeds may only be used for the construction of VA nursing homes.

Source: VA. Vacant building at the health care facility in Milwaukee,
Wis., for which the Great Lakes network has no alternate use or disposal
plan. VA HEALTH CARE

Improved Planning Needed for Management of Excess Real Property

www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 326. To view the full report,
including the scope and methodology, click on the link above. For more
information, contact Cynthia A. Bascetta at (202) 512- 7101. Highlights of
GAO- 03- 326, a report to the

Honorable John D. Rockefeller IV, U. S. Senate

January 2003

The Department of Veterans Affairs (VA) has changed from a hospitalbased
system to primary reliance on outpatient care. As a result, VA expects
that the number of unneeded buildings will increase.

Veterans* needs could be better served if VA finds ways to minimize
resources devoted to these buildings. VA must have an effective process to
find alternate

uses or dispose of unneeded property. In August 2002, VA completed a pilot
test for realigning

its health care system in the Great Lakes network. The pilot identified 30
buildings that are no longer needed to provide health care to veterans. VA
is currently studying how to realign assets in its 20 remaining networks.
GAO was asked to review VA*s management of unneeded buildings in its Great
Lakes network.

GAO recommends that the Secretary of Veterans Affairs conduct a pilot test
in the Great Lakes network of its newly developed model for managing
vacant buildings and make modifications, if needed, to ensure that it will
provide an effective decision- making tool that could be used in the
remaining networks. VA concurred with this

recommendation.

Page i GAO- 03- 326 VA's Management of Excess Real Property Letter 1
Results in Brief 2 Background 3 VA*s Management of 30 Vacant Buildings in
Its Great Lakes

Network 6 Obstacles to Alternate Use or Disposal of 9 Vacant Buildings 7
Conclusions 9 Recommendation for Executive Action 9 Agency Comments 9
Appendix I Scope and Methodology 11

Appendix II Comments from the Department of Veterans Affairs 12

Abbreviations

CARES Capital Asset Realignment for Enhanced Services GSA General Services
Administration VA Department of Veterans Affairs Contents

Page 1 GAO- 03- 326 VA's Management of Excess Real Property

January 29, 2003 The Honorable John D. Rockefeller IV United States Senate

Dear Senator Rockefeller: The Department of Veterans Affairs (VA) operates
one of our nation*s largest health care delivery systems, comprising 21
health care delivery networks that operate and maintain over 4,700
buildings. Over the past

decade, VA*s system has undergone a dramatic transformation, shifting from
predominantly hospital- based care to primary reliance on community- based
VA and non- VA providers for a full continuum of health care delivered
largely on an outpatient basis. As a result, vacant and

underutilized buildings at VA*s inpatient locations have become more
common.

Because the cost to operate and maintain these underutilized and vacant
buildings consumes resources that could otherwise be used to provide
health care services for veterans, 1 VA initiated its Capital Asset
Realignment for Enhanced Services (CARES) process. Under CARES, VA*s
Undersecretary for Health has directed networks to develop
assetrestructuring plans to guide future capital investment decisions that
would involve constructing new facilities or renovating or closing
existing ones for the purpose of delivering health care more efficiently
in existing locations or closer to where veterans live.

Through CARES, VA plans to develop a nationwide strategic plan that
identifies capital assets needed to meet veterans* health care needs, as
well as those assets that are no longer needed. In August 2002, VA
announced the results of its CARES pilot test* a plan to realign capital
assets to improve health care delivery in its Great Lakes network. This
plan described how VA intends to restructure its inpatient facilities as
well as open new outpatient clinics in community settings to provide
health 1 U. S. General Accounting Office, VA Health Care: Capital Asset
Planning and Budgeting

Need Improvement, GAO/ T- HEHS- 99- 83 (Washington D. C.: Mar. 10, 1999),
VA Health Care: Challenges Facing VA in Developing an Asset Realignment
Process, GAO/ T- HEHS- 99- 173 (Washington D. C.: July 22 1999), and VA
Health Care: Improvements Needed in Capital

Asset Planning and Budgeting, GAO/ HEHS- 99- 145 (Washington D. C.: Aug.
13, 1999).

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 03- 326 VA's Management of Excess Real Property

care to veterans. Also, VA identified 30 vacant buildings that are no
longer needed to meet veterans* health care needs. 2 Currently VA is
conducting CARES studies in its 20 other health care networks. VA*s goal
is to make realignment decisions by October 2003, and it expects that many
additional buildings will be considered excess, given its extensive
inventory of buildings nationwide. As such, timely disposal or alternate
use of excess buildings could play a critical role in VA*s realignment
efforts by avoiding maintenance costs or generating revenue to enhance
services for veterans such as financing needed renovations to

existing buildings. In your capacity as Chairman of the Senate Committee
on Veterans* Affairs, you asked us to review VA*s management of vacant
buildings in the Great Lakes CARES pilot to better understand the
potential implications of excess property for the entire CARES process.
Accordingly, we assessed the Great Lakes Network*s efforts to develop
alternate use or disposal plans for vacant buildings and identified

obstacles that hinder effective management. To conduct our work, we
visited medical facilities in the Great Lakes network, where we also did
physical inspections of vacant buildings. We reviewed documents related to
the 30 vacant buildings, as well as the network*s plans for managing these
buildings. We discussed these plans and asset disposal issues with
officials responsible for asset management in VA*s headquarters, in the
Great Lakes network office, and at the network*s health care facilities.
We also discussed federal disposal policies, procedures, and practices
with officials of the General Services Administration (GSA) as well as
representatives of the National Trust for Historic Preservation. We
performed our review from January 2002 through January 2003 in accordance
with generally accepted government auditing standards. Appendix I contains
a more detailed description of our scope and methodology. VA has developed
or implemented alternative use or disposal plans for

21 of its 30 unneeded, vacant buildings in the Great Lakes network. For 2
As part of the restructuring of inpatient services, VA also plans to close
the Lakeside Division of its Chicago Health Care System and transfer
patients to the system*s West Side Division and, as needed, to the Hines
VA hospital, by December 2003. In addition, VA

identified three other network buildings that may become vacant over the
next 3 years. Results in Brief

Page 3 GAO- 03- 326 VA's Management of Excess Real Property

13 buildings, VA expects to generate revenue through Enhanced- Use Leases
3 primarily with nonprofit organizations. Enhanced- Use Lease partners
have demolished 4 buildings, and VA expects 4 additional buildings will be
demolished to meet higher priority needs, such as additional cemetery
capacity or parking for patients, visitors, and others when using VA
health care facilities.

For the remaining 9 vacant buildings, network officials identified three
obstacles that hinder effective management. First, despite significant
efforts to find alternate uses, they have been unable to find
organizations interested in using the buildings due primarily to their
location or physical condition. Second, network officials believe that it
may cost more to demolish buildings than to continue to incur routine
maintenance costs although in many cases the network has not determined
the cost to demolish the vacant buildings. Third, although disposal
responsibility for these buildings can be transferred to GSA, network
officials have been reluctant to pursue this option primarily because VA
would incur costs for environmental and other requirements that could
exceed potential savings through avoidance of maintenance costs. However,
the network has not

determined whether such transfer costs actually exceed potential savings.
VA also does not consider this to be an attractive option because any
proceeds could only be used for construction of VA nursing homes. We are
making a recommendation to improve the decision- making process for
assessing alternative ways to deal with excess buildings. VA concurred
with our recommendation.

VA spent about $21 billion to provide health care services, including
acute medicine, surgery, mental health, and long- term care, to about 4.2
million veterans during fiscal year 2001. Of VA*s 4,700 buildings, over 40
percent have operated for more than 50 years, including almost 200 built
before 1900. Over 1, 600 buildings have historical significance that
requires VA to comply with special procedures for maintenance and
disposal.

VA*s health care infrastructure was designed and built to reflect a
concept of hospital- centered inpatient care, with long stays for
diagnosis and

3 38 U. S. C. S:8161 (2002) et seq. VA has authority to enter into
partnerships to lease its properties to nongovernmental entities. In turn
these entities develop, rehabilitate, or renovate the properties.
Background

Page 4 GAO- 03- 326 VA's Management of Excess Real Property

treatment. This concept is now outdated as new technology and treatment
methods have shifted delivery from inpatient to outpatient services where
possible and shortened lengths of stay when hospitalization is required.
As a result, VA*s capital assets often do not align with current health
care needs for optimal efficiency and access.

To address this situation, CARES will assess veterans* potential demand
for health care over the next 20 years, identify potential service gaps
and develop delivery options for meeting veterans* needs, and guide the
realignment of capital assets to support the preferred delivery options.
VA conducted a pilot test in the Great Lakes network, which served about

220,000 veterans in fiscal year 2001 with an annual budget of $891
million. This network includes three general market areas: northern
Illinois (Chicago), Wisconsin, and the Upper Peninsula of Michigan. In
February 2002, the Secretary of Veterans Affairs selected strategies for
realignment

of services. These strategies included (1) consolidation of services at
existing locations, (2) opening of new outpatient clinics, and (3) closure
of one inpatient location.

Subsequently, VA identified 30 vacant buildings that were no longer needed
to meet veterans* health care needs. Of the 30 buildings, 11 are
considered to be historic. Under the provisions of the National Historic
Preservation Act, 4 federal agencies are required to take into account the
effect of any federal undertaking on any historic property. Until a
decision is made on demolition, agencies that own or control historic
properties are

required to preserve their historic character and minimize harm to them.
The act also establishes federal agency responsibilities that must be met
if historic properties are to be demolished.

During fiscal year 2001, officials in VA*s Great Lakes network told us
that an estimated $750,000 was spent to maintain vacant buildings,
primarily for utilities. Network officials told us that this represents a
relatively small portion of the total resources needed to adequately
operate these buildings for the delivery of health care or other purposes.
Actual expenses were lower because the buildings are no longer used for
health care.

4 16 U. S. C. 470 et seq. The act establishes roles and responsibilities
of the federal government to preserve and protect historic properties.

Page 5 GAO- 03- 326 VA's Management of Excess Real Property

In general, the network considered three options when developing property
disposal or other plans for vacant buildings: Enhanced- Use Leasing,
demolition, or transferring the property to GSA, which has the authority
to dispose of excess or surplus federal property under the Federal
Property and Administrative Services Act of 1949 (Property Act). 5 Under
Enhanced- Use Leasing, VA may lease property to others for up to 75

years; it may transfer title to the lessee at some time during the life of
the lease if such transfer is in the best interests of the federal
government. Demolition is a viable option when the associated costs can be
recovered within a reasonable period, primarily through the avoidance of
maintenance costs. If VA reports the property to GSA as excess, GSA
identifies potential users for the property by going through several
levels of screenings that evaluate users in the following order of
priority: federal users; organizations that will use the property for
homeless programs under the Stewart B. McKinney Homeless Assistance Act; 6
nonprofit organizations that may want the property for public uses such as
parks, museums, or educational facilities; and state or local governments.
If none of these screening processes produce a user, the site is made
available for public sale.

Following the pilot test in the Great Lakes network, VA made significant
modifications to its CARES procedures, including development of a more
systematic process to guide decisions involving the management of vacant
buildings. For example, networks will use a common format for estimating
future maintenance costs, as well as potential demolition costs. However,
the model does not include costs associated with the transfer of property
to GSA nor the potential revenue that could be realized.

5 Excess property means any property under the control of a federal
executive agency that is not required for the agency*s needs or the
discharge of its responsibility. (40 U. S. C. S: 102( 3); 41 C. F. R.
S:101- 47.901.) If GSA determines that excess real property is not
required by any federal landholding agency, the property is deemed
*surplus* and eligible for disposal. (40 U. S. C. S: 102( 10); 41 C. F. R.
101- 47. 901.)

6 42 U. S. C. S: 11411.

Page 6 GAO- 03- 326 VA's Management of Excess Real Property

VA has negotiated Enhanced- Use Leases for 10 vacant buildings and is
negotiating Enhanced- Use Leases for 3 buildings. Four buildings have been
demolished, and 4 additional buildings will be demolished. VA currently
has no disposal plans for the other 9 buildings.

In April 2002, VA contracted with the Chicago Medical School for an
Enhanced- Use Lease of 10 vacant buildings at VA*s North Chicago health
care delivery location. The medical school will either renovate or
demolish these buildings and in return will purchase utilities, including
steam, electricity, and chilled water, from a VA- operated facility. In
addition to generating revenue from the sale of utilities, the network
will avoid annual maintenance costs of over $440,000. VA is negotiating an
Enhanced- Use Lease with Catholic Charities of

Chicago for 3 vacant buildings at the Hines VA hospital in Chicago. Two of
the three were considered historic; VA network officials took steps to
have the historic designation removed. VA expects Catholic Charities to
renovate the buildings to make them suitable for transitional housing for
the homeless. VA also expects to receive rental payments as well as
reimbursement for utilities, grounds maintenance, and snow removal. In
addition, VA is negotiating with Catholic Charities to use at least 50
percent of the housing for veterans who need this service. Network
officials told us that utilities were turned off and that no funds were
spent on these buildings for other purposes during fiscal year 2001. Four
buildings have been demolished, and 4 others will be demolished. At

the Chicago Health Care System*s West Side Division, the Enhanced- Use
Lease partner demolished 3 buildings in November 2002 to provide space for
a new parking garage and a Veterans Benefits Administration regional
office. The U. S. Navy demolished 1 building at North Chicago on land that
VA transferred to it for future use. Four other buildings will be
demolished because they present safety hazards or the land is needed to
expand existing VA facilities, including cemeteries. These buildings are
located at the Milwaukee health care facility and Hines VA hospital. Two
of these buildings, located at Milwaukee, are historic. The other two
buildings are at Hines. One of the two was considered historic. Network
officials told us they were successful in having the historic designation
removed. This

building will be demolished in order to construct a surface parking lot
for a new spinal cord injury/ blind rehabilitation center. During fiscal
year 2001, VA spent about $17,000 to operate and maintain these 4
buildings. VA*s Management of

30 Vacant Buildings in Its Great Lakes Network

Page 7 GAO- 03- 326 VA's Management of Excess Real Property

Despite the efforts of network officials, the lack of interest in 9 of
VA*s vacant buildings has been an obstacle to finding alternate uses for
these buildings. Network officials believe that maintaining ownership of
the vacant buildings is the least expensive course of action, given the
relatively high demolition costs compared to annual maintenance costs and
considerable uncertainties concerning VA*s potential costs to transfer the
properties to GSA.

Network officials told us that they have attempted to interest outside
organizations in utilizing the 9 vacant buildings without success. For
example, officials at the medical center in Tomah, Wisconsin, offered to
transfer ownership of a 23,579- gross- square- foot building to a local
Indian tribe for use as office space and an outpatient clinic. The
building, which

was constructed in 1929, has been vacant since 1983. According to VA, the
offer was turned down because of the $2 million cost of renovations needed
to make it suitable for this purpose. The medical center director told us
that because Tomah is located in a rural area, it has been difficult to
find other organizations interested in this building and its two other

vacant buildings. Likewise, officials at the Milwaukee medical center told
us that they have had discussions with other organizations concerning use
of 6 vacant buildings. They have tried to generate interest in the
buildings as elderly

housing, as office space, and for a youth home. These officials suggested
that two of the vacant buildings, a theater and a chapel, could, when
renovated, be used for these purposes if interested parties could be
found. They told us they have held discussions with other government
agencies, school organizations, a labor union, and charitable
organizations without success.

Network officials cited a second obstacle, namely that the cost to
demolish the 9 vacant buildings could not be recovered through avoidance
of maintenance costs, such as utilities, within a reasonable period. For
example, the network determined that the cost to demolish 3 of these 9
vacant buildings would be about $500,000, while maintenance costs for the
3 buildings were about $26,000 during fiscal year 2001.

The shortest recovery period was about 11 years for 1 of the 4 buildings.
This 33,910- square- foot building, located in Tomah, Wisconsin, has been
vacant since 1998. According to VA, the cost to demolish this building

would be $212,000. During fiscal year 2001, the medical center spent about
$18,600 for utilities for this building. By contrast, demolition costs for
1 building would likely take over 40 years to recover. This 23, 579- gross
Obstacles to Alternate

Use or Disposal of 9 Vacant Buildings

Page 8 GAO- 03- 326 VA's Management of Excess Real Property

square- foot building has been vacant at the Tomah medical center since
1983. During fiscal year 2001, the medical center spent about $7,000 to
maintain this building. According to VA, the cost to demolish this
building would be $308,000.

In addition, network officials cited the uncertainty of potential costs as
the third obstacle in declaring the 9 buildings excess property under the
provisions of the Property Act. First there is no assurance that VA could
save money given that property- holding agencies, such as VA, incur costs
in disposing of excess property with GSA. Property- holding agencies are
generally responsible for mothballing and stabilizing 7 property in order
to prevent its further deterioration pending transfer to another federal

agency or its disposal. According to GSA, the landholding agency is also
responsible for studies to detect the presence of hazardous wastes as well
as archeological sites.

GSA officials also told us that they are committed to maintaining the best
and highest use for the property and that historic property will be
transferred only under covenants that protect its historic designation;
all 9 buildings are considered historic. According to a network official,
the Great Lakes network has not determined whether the cost of
transferring these excess buildings to GSA exceeds the cost of continuing
to own and maintain them.

Second, VA does not consider the transfer of vacant buildings to GSA (by
declaring them excess) to be an attractive option. This is because
proceeds that are received from the sale of real property must be
deposited into the VA Nursing Home Revolving Fund, which is only to be
used for the construction of nursing homes. VA would prefer to use these
proceeds for the delivery of inpatient and outpatient services for
veterans as well as long- term care. VA officials told us that they had
proposed legislation that would allow VA to use sales proceeds to support
veterans* health care delivery, but it was not enacted. As a result, VA
would prefer to pursue Enhanced- Use Leases, which will allow VA to use
revenue to meet

the overall health care needs of veterans. 7 Mothballing includes securing
the buildings, providing adequate ventilation, and disconnecting and
sealing off all utilities. Stabilizing includes structurally stabilizing
the buildings, controlling pests, and protecting the exterior and interior
from moisture.

Page 9 GAO- 03- 326 VA's Management of Excess Real Property

Officials in VA*s Great Lakes network have made progress dealing with
vacant buildings that are no longer needed in the delivery of health care
to veterans. When there is no Enhanced- Use Lease potential, however,
these officials have encountered several obstacles, including potentially
high demolition costs or uncertain site preparation costs associated with

reporting buildings to GSA as excess to VA*s needs. Understandably, they
are reluctant to commit potentially large amounts of health care resources
for the demolition or site preparation without sufficient assurance that
most or all costs will be recovered. The Great Lakes network has retained
ownership of 9 vacant buildings and thus continues to spend medical care
resources to maintain them. As the CARES process is completed in the 20
remaining networks, costs associated with an increasing number of unneeded
buildings that will be identified will grow. Therefore, it is critical
that VA take the steps needed to systematically evaluate all relevant cost
information. VA*s recent changes to the CARES process provide a framework
for making effective decisions, although since the changes have not been
tested, it remains unclear whether they will function as an effective
model that includes complete cost information concerning options to
dispose of or find alternate uses for vacant buildings.

To ensure that the newly developed CARES model for managing excess
buildings will provide an effective decision- making tool that could be
used in the other networks, we recommend that the Secretary of Veterans
Affairs conduct a pilot test of the model in the Great Lakes network and
make modifications, if needed.

In commenting on a draft of this report, VA agreed with our findings and
conclusions and concurred with our recommendation. VA*s letter is
reprinted in appendix II. We modified the report to use the term *Enhanced
Use Leasing,* as VA

suggested. We also incorporated VA*s technical comments as appropriate. VA
also emphasized that it had proposed legislation that would allow VA to
use sales proceeds to support veterans* health care delivery, but it has
not been enacted. Also, VA expressed concern that the process for removing
buildings from historic preservation status is a significant obstacle when
it attempts to find alternate use for or dispose of all remaining
buildings. We agree that this process complicates VA*s ability to manage
vacant buildings, but as we stated in our report, VA has been

successful in removing the historic designation of buildings in the Great
Lakes network in order to facilitate demolition or alternate use. Factors
Conclusions

Recommendation for Executive Action

Agency Comments

Page 10 GAO- 03- 326 VA's Management of Excess Real Property such as the
constraints on the ability to retain proceeds from the sale of real
property and the need to address historical building issues are shared by
many real property- holding agencies. We discuss the factors associated
with excess property in the federal government as a whole in a soon- to-
bereleased

report on longstanding problems in the federal real property arena.

We are sending copies of this report to the Secretary of Veterans Affairs
and other interested parties. We will also make copies available to others
upon request. In addition, the report is available at no charge on the GAO

Web site at http:// www. gao. gov. If you or your staff members have any
questions about this report, please call me at (202) 512- 7101. Key
contributors to this report were Paul Reynolds, Behn Miller, and John
Borrelli.

Sincerely yours, Cynthia A. Bascetta Director, Health Care* Veterans*

Health and Benefits Issues

Appendix I: Scope and Methodology Page 11 GAO- 03- 326 VA's Management of
Excess Real Property To assess the Department of Veterans Affairs* (VA)
efforts to manage unneeded, vacant buildings, we obtained information from
the Great Lakes

network on the number of such buildings, the cost to maintain the
buildings, and its efforts to find alternate uses for the buildings. We
asked for information such as the age of the buildings, the year in which
they became vacant, the cost of utilities and other operating costs, as
well as the cost of any needed repairs. We also asked about the network*s
plans to manage these buildings through such actions as demolition or
EnhancedUse Lease.

After we received this information we visited the network and interviewed
the Director and other network staff members about their efforts to deal
with unneeded, vacant buildings. We discussed with these officials their
plans for implementing Capital Asset Realignment for Enhanced Services
(CARES) options selected by the Secretary. We visited the Hines,

Milwaukee, and North Chicago hospitals. During our visits we met with
hospital directors, associate directors, and their staffs. We discussed
with these officials their actions to find alternate uses for the
buildings and problems they have encountered in doing so. By telephone, we
discussed with the Director of the Tomah hospital and members of his staff
information on the hospital*s vacant buildings. At the Milwaukee and North
Chicago hospitals, we visually inspected vacant buildings. We did

not tour vacant buildings at Hines because of building safety concerns. At
VA headquarters, we met with officials to discuss the CARES process and
VA*s plans for managing vacant buildings. We reviewed CARES planning
documents, including information supporting the network*s August 2002
realignment decisions. We also met with VA*s Historic Preservation Officer
to discuss the impact of historic significance on VA*s ability to take
actions on unneeded vacant buildings.

We met with General Services Administration officials to discuss the
process for disposing of excess property as well as proposed legislation
aimed at improving federal agencies* ability to manage federal property.
We also discussed management of historic properties with officials at the
National Trust for Historic Preservation.

We performed our review from January 2002 through January 2003 in
accordance with generally accepted government auditing standards. Appendix
I: Scope and Methodology

Appendix II: Comments from the Department of Veterans Affairs

Page 12 GAO- 03- 326 VA's Management of Excess Real Property Appendix II:
Comments from the Department of Veterans Affairs

Appendix II: Comments from the Department of Veterans Affairs

Page 13 GAO- 03- 326 VA's Management of Excess Real Property (290113)

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