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State Department: Options for Reducing Overseas Housing and Furniture Costs

NSIAD-98-128 Published: Jul 31, 1998. Publicly Released: Jul 31, 1998.
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Highlights

GAO reviewed the practices of the private sector and other foreign governments to determine whether those practices offer the potential to reduce overseas housing costs and provide quality services for Department of State and other agencies.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of State The Secretary of State should direct the Under Secretary for Management to establish a pilot program for testing the practices GAO identified for leasing and furnishing of overseas residences. The pilot should be coordinated through the International Cooperative Administrative Support Services framework at the pilot posts, which provides a mechanism to fully document direct and indirect costs of alternatives and involve all key agencies operating at posts. Options that should be in the pilot include outsourcing homefinding, expanding the use of housing allowances, increasing the use of the employees' household effects, and procuring furniture locally.
Closed – Not Implemented
State disagreed with the recommendation and does not intend action.
Office of the Under Secretary for Management The Under Secretary for Management should designate specific posts for the pilot. GAO believes that the pilot should initially focus on 6-8 posts. GAO believes that good candidates include Brussels, London, Paris, the Hague, Singapore, Bangkok, San Jose, Nassau and Mexico City.
Closed – Not Implemented
State disagreed with the recommendation and does not intend action.
Office of the Under Secretary for Management If the pilot tests confirm the cost advantages of one or more of the practices, the Under Secretary should also establish an implementation plan for a larger roll-out of these practices.
Closed – Not Implemented
State disagreed with the recommendation and does not intend action.

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Topics

Americans employed abroadBest practicesEmployee transfersFederal agency reorganizationFreight transportationHousehold goodsPrivate sector practicesPrivatizationRelocation allowancesTransportation costsComparative benchmarking products