United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2000-03-30 monographic deposited born digital 72 p. GA 1.13:NSIAD-00-71 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-71 P0b002ee1803a1b15 f:ns00071 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-00-71 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-00-71 NSIAD-00-71 Military housing Cost analysis Housing programs Privatization Housing construction Housing allowances Military cost control Rental housing Life cycle costs DOD Military Family Housing Program DOD Military Housing Privatization Initiative DOD Family Housing Improvement Fund DOD Military Unaccompanied Housing Improvement Fund Chapter Report NSIAD

Pursuant to a legislative requirement, GAO provided information on the Department of Defense's (DOD) Military Housing Privatization Initiative, focusing on the: (1) status of the housing privatization initiative; (2) accuracy of the services' life-cycle cost analyses comparing the cost of proposed privatization projects to comparable projects financed through military construction funds; and (3) progress DOD is making in coordinating and integrating the initiative with other family housing programs.<p/>GAO noted that: (1) although initial plans for housing privatization were aggressive, actual progress has been slow; (2) almost 4 years after the program was initiated, DOD has awarded only two privatization contracts to build or renovate 3,083 military family housing units; (3) DOD explains that because this represents a new way of doing business, developing procedures and financial instruments and awarding contracts have taken more time than expected; (4) it appears questionable whether the services will meet a DOD goal to eliminate all inadequate family housing by fiscal year 2010; (5) because no projects under the program have been completed, there is little basis for evaluating the effectiveness of the program in eliminating inadequate housing more economically and faster than could be achieved through traditional military construction financing; (6) until experience is gained in the actual operation of several projects, key questions will remain unanswered, such as whether: (a) the military will need the housing over the 50-year terms of most projects; (b) developers will operate and maintain privatized housing in accordance with contracts; and (c) actual privatization costs and savings will be in line with DOD estimates; (7) DOD has not developed a formal evaluation plan to help answer these questions and assess the overall merits of the initiative as it is implemented; (8) a review of 14 projects found that the services did not prepare a life-cycle cost analysis for 2 projects and that the analyses for the remaining 12 projects were incomplete, primarily because DOD had not issued standardized guidance for preparing the analyses; (9) DOD has made progress in coordinating this initiative with other housing options by increasing use of cross-organizational panels that review and coordinate housing policies and issues; (10) however, it has not finalized an overall integrated housing strategy for addressing its housing needs in a manner that considers the interrelationships among these options; (11) DOD's January 2000 announcement of a new initiative to significantly increase housing allowances over the next 5 years makes a well-developed strategy that balances the various housing options even more important; (12) the services have not improved their housing requirements determination processes to more accurately estimate how much housing the installations must supply and they have not always updated their housing requirements assessments prior to approving privatization projects; and (13) thus, they cannot be assured that they are meeting an adequately documented need. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-71/html/GAOREPORTS-NSIAD-00-71.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-71/pdf/GAOREPORTS-NSIAD-00-71.pdf GAO/NSIAD-00-71 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-71 Chapter Report GAO/NSIAD-00-71; Military Housing: Continued Concerns in Implementing the; Military housing Cost analysis Housing programs Privatization Housing construction Housing allowances Military cost control Rental housing Life cycle costs DOD Military Family Housing Program DOD Military Housing Privatization Initiative DOD Family Housing Improvement Fund DOD Military Unaccompanied Housing Improvement Fund Title 10 Section 2873(a) Title 10 Section 2873(b) Title 10 Section 2874 Title 10 Section 2875(a) Title 10 Section 2876 Title 10 Section 2877 Title 10 Section 2878 Title 10 Section 2879 Title 10 Section 2880(a) Title 10 Section 2881 Title 10 Section 2882 10 U.S.C. 2873(a) 10 U.S.C. 2873(b) 10 U.S.C. 2874 10 U.S.C. 2875(a) 10 U.S.C. 2876 10 U.S.C. 2877 10 U.S.C. 2878 10 U.S.C. 2879 10 U.S.C. 2880(a) 10 U.S.C. 2881 10 U.S.C. 2882 Public Law 103-337 Public Law 104-106 H. Rept. 105-647