Sale of Industrial Assets Owned by the Department of Defense
PLRD-82-114, Sep 10, 1982
Pursuant to a congressional request, GAO reviewed recent General Services Administration (GSA) sales of Department of Defense industrial assets. The report focused on the concern of small forging companies that such sales were negotiated rather than competitively bid and that sales prices may have been below market value.
GAO found that GSA made five sales of Government-owned, contractor-operated facilities in the past 2 years and that they had been sold by negotiation, rather than on the open market, because this was a condition of sale established by the Air Force in order to avoid disruption of production of military weapons systems at these facilities. Further, GAO found that GSA had implemented the requirement to obtain fair market value in negotiated sales by using the services of an independent contract appraiser.