Federal Real Property: Agencies Should Provide More Information About Increases in Deferred Maintenance and Repair
Fast Facts
We've reported that federal agencies have deferred the maintenance and repairs on their buildings, creating a backlog of these needs.
The estimated cost of 4 agencies' backlogs increased more than 80% over FY 2017-2022. Officials at the agencies attributed this to factors including funding constraints, cost increases, and the age and quantity of agencies' physical assets.
Agencies' budget documents include information on maintenance needs. But, to give Congress and the public a more complete picture, we recommended including more on
Reasons for estimate changes
Categories of assets included in estimates
Which projects are mission-critical
Department of Energy deferred maintenance on this aging air handling unit at Brookhaven National Laboratory in Upton, NY.
Highlights
What GAO Found
Estimates for deferred maintenance and repair (DM&R) increased about $22 billion (83 percent) from fiscal years 2017 through 2022 for selected agencies—Department of Energy (DOE), Department of Health and Human Services (HHS), Department of the Interior (DOI), and General Services Administration (GSA). Agency officials attributed these increases—which ranged from 63 to 126 percent—to factors including funding constraints, labor and material cost increases, and the size and age of agencies' real property portfolios.
Percent Changes in Agencies' Estimated Deferred Maintenance and Repair Backlogs, Fiscal Years 2017-2022
The selected agencies communicate DM&R needs, along with some contextual information, to Congress and public in their budget materials and other documents. However, GAO found that the agencies could provide more information in three areas: (1) reasons for changes in DM&R estimates, (2) categories of assets included in and excluded from backlog estimates, and (3) extent of DM&R needed to support agencies' missions. For example, HHS, GSA, and DOI did not explain that the methodologies they used to estimate DM&R—or changes to those methodologies—had contributed to annual increases of up to 40 percent. Providing such information could help Congress and the public better assess the costs and funding needs associated with agencies' DM&R backlogs.
GAO found that the agencies' policies for prioritizing DM&R followed most—but not all—of five leading practices for managing DM&R. Specifically, the policies followed practices on (1) establishing maintenance and repair objectives and prioritizing outcomes, (2) identifying types of facilities that support missions, and (3) aligning portfolios with mission needs. For the practice of identifying funding in budget materials, GAO found that the agencies' materials provided information on funding for planned maintenance but not on funding or timeframes for addressing the backlog of deferred maintenance and repair. Providing such information could help decision makers better evaluate agencies' budget requests. For the practice of using models to predict investment outcomes, analyze tradeoffs, and optimize among competing investments, GAO found that agencies employed such models to varying extents. Agencies raised some concerns with the use of certain models. However, assessing the potential benefits of using models could better position them to identify investment options that would provide the greatest return on investment given budget constraints.
Why GAO Did This Study
The federal government owns a massive portfolio of civilian buildings and structures (roads, bridges, dams, and monuments). DM&R on these assets can affect agencies' abilities to support their missions.
GAO was asked to review selected federal agencies' management of their DM&R. This report examines: (1) how the agencies' DM&R estimates changed from fiscal years 2017 through 2022, and reasons for changes; (2) the extent to which the agencies communicated DM&R needs to Congress and the public; and (3) the extent to which the agencies' prioritization policies align with leading practices for managing DM&R. GAO selected four agencies—DOE, HHS, DOI, and GSA—based on reported DM&R amounts, among other factors. GAO analyzed these agencies' DM&R and funding data for fiscal years 2017-2022. GAO reviewed the agencies' budget and financial materials to determine what DM&R information they communicated. GAO reviewed the agencies' policies on prioritizing DM&R and compared them to leading practices. In addition, GAO interviewed agency officials and conducted site visits at selected agency locations.
Recommendations
GAO is making 12 recommendations, including 11 to DOE, DOI, HHS, and GSA that they provide more information on their DM&R estimates and fully follow leading practices. GAO is also recommending that OMB instruct federal agencies on communicating DM&R needs. DOI, HHS, and GSA concurred with GAO's recommendations. DOE and OMB neither agreed nor disagreed.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should ensure that the department's budget materials or other documents provide more information to Congress and the public regarding the agency's deferred maintenance and repair backlog, including at a minimum, the proportion of DM&R estimates needed to support the mission. (Recommendation 1) |
In May 2024, Energy noted updates to Office of Management and Budget financial reporting guidance, including requirements to report additional information on DM&R for mission critical facilities. Energy plans to include this information as part of the fiscal year 2025 annual financial report. GAO will continue to monitor progress in addressing the recommendation.
|
| Department of Energy |
Priority Rec.
The Secretary of Energy should ensure that the department works with its component agencies to develop plans to address their DM&R backlogs and identify the funding and time frames needed to reduce them in congressional budget requests, related reports to decision makers, or both. (Recommendation 2) |
As of January 2025, DOE had established a working group and was developing recommendations for specific changes to inform DOE's fiscal year 2026 budget process. To fully implement our recommendation, DOE should develop plans to address DM&R backlogs and identify the funding and time frames needed to reduce the backlogs in congressional budget requests, related reports to decision-makers, or both. GAO will continue to monitor progress in addressing the recommendation.
|
| Department of Energy | The Secretary of Energy should ensure that the department works with its component agencies to evaluate the costs and benefits of increasing the use of models for predicting the outcome of investments, analyzing tradeoffs, and optimizing among competing investments, and employ models when the benefits outweigh the costs. (Recommendation 3) |
In April 2025, DOE provided GAO with documentation demonstrating that it had developed an order of magnitude cost-benefit analysis to purchase and implement predictive models for all of its real property (buildings, structures, and other facilities). This analysis found that the costs to procure, maintain, and analyze the results of models, would exceed the potential cost savings. As a result, DOE concluded predictive modeling would not be financially advantageous. By completing this analysis, DOE has determined the predictive models should not be employed and ensured the department made the best use of its limited resources.
|
| Department of the Interior | The Secretary of the Interior should ensure that the department's budget materials or other documents provide more information to Congress and the public regarding the agency's deferred maintenance and repair backlog, including at a minimum, explanations for major changes from year to year, categories of assets included in DM&R estimates, and the proportion of DM&R estimates needed to support the mission. (Recommendation 4) |
Interior agreed with the recommendation. In its fiscal year 2024 Annual Financial Report, Interior included additional information on major changes in the deferred maintenance and repair backlog and the categories of assets included in the estimates. However, Interior did not provide details on the amount of deferred maintenance and repair for certain types of assets or the proportion of estimates needed to support the mission.
|
| Department of the Interior |
Priority Rec.
The Secretary of the Interior should ensure that the department works with its component agencies to develop plans to address their DM&R backlogs and identify the funding and time frames needed to reduce them in congressional budget requests, related reports to decision makers, or both. (Recommendation 5) |
Interior concurred with this recommendation. In its fiscal year 2025 budget justification, Interior presented additional information regarding deferred maintenance and repairs, including information on the amounts of deferred maintenance and repair that could be addressed by new construction projects as well as more extensive information for several component agencies. In addition, Interior instructed components to provide details on their deferred maintenance and repair backlogs-including proposed funding and timeframes-as part of internal deliberative documents that would be used to inform the fiscal year 2026 budget submission. However, to fully implement our recommendation, Interior...
|
| Department of the Interior | The Secretary of the Interior should ensure that the department works with its component agencies to evaluate the costs and benefits of increasing the use of models for predicting the outcome of investments, analyzing tradeoffs, and optimizing among competing investments, and employ models when the benefits outweigh the costs. (Recommendation 6) |
Interior agreed with the recommendation and officials said they were coordinating with the bureaus to review the availability and benefits of lifecycle investment models. As of January 2025, officials said that Interior had collected a number of different models, assessed those models, and provided recommendations to a working group for specific models to use across the department. GAO will continue to monitor these efforts.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should ensure that the department's budget materials or other documents provide more information to Congress and the public regarding the agency's deferred maintenance and repair backlog, including at a minimum, explanations for major changes from year to year, categories of assets included in DM&R estimates, and the proportion of DM&R estimates needed to support the mission. (Recommendation 7) |
Health and Human Services (HHS) agreed with the recommendation. HHS said it would work with offices in its Program Support Center to ensure that facilities exhibits in its congressional budget justifications provide information on deferred maintenance and repair backlogs, including explanations for major changes from year to year, categories of assets included in backlog estimates, and the proportion of estimates needed to support the mission. In addition, in February 2025, HHS officials stated that HHS will provide information to Congress and the public on DM&R in its fiscal year 2026 Annual Financial Report.
|
| Department of Health and Human Services |
Priority Rec.
The Secretary of Health and Human Services should ensure that the department works with its component agencies to develop plans to address their DM&R backlogs and identify the funding and time frames needed to reduce them in congressional budget requests, related reports to decision makers, or both. (Recommendation 8) |
In November 2023, HHS stated that it will work with partners in the Program Support Center offices to include guidance in preliminary budget submissions. This guidance will ask agencies to develop plans to address their DM&R backlog and identify the funding and time frames needed to reduce the backlog identified in the congressional justifications. HHS stated it can also work to include the DM&R backlog considerations in budget decision meeting materials and discussions. In its fiscal year 2025 budget justification, HHS requested additional funding for fiscal year 2025 and proposed additional funding for fiscal years 2026 and 2027 to address its backlog. However, the 2025 budget...
|
| Department of Health and Human Services | The Secretary of Health and Human Services should ensure that the department works with its component agencies to evaluate the costs and benefits of increasing the use of models for predicting the outcome of investments, analyzing tradeoffs, and optimizing among competing investments, and employ models when the benefits outweigh the costs. (Recommendation 9) |
Health and Human Services agreed with the recommendation. Health and Human Services noted that models used for investments in its real property portfolio may encounter limitations given the vastly different missions carried out in different facilities. As of December 2024, HHS officials reported continuing their efforts to work with component agencies to evaluate the costs and benefits of increasing the use of predictive models. GAO will continue to monitor these efforts.
|
| General Services Administration | The Administrator of GSA should ensure that the administration's budget materials or other documents provide more information to Congress and the public regarding the agency's deferred maintenance and repair backlog, including at a minimum, explanations for major changes from year to year, categories of assets included in DM&R estimates, and the proportion of DM&R estimates needed to support the mission. (Recommendation 10) |
In its fiscal year 2024 Annual Financial Report, GSA included additional information on major changes in the deferred maintenance and repair backlog and the categories of assets included in the estimates. GSA did not provide details on the proportion of estimates needed to support the mission. In March 2025, GSA officials clarified that all DM&R included in its estimate is considered essential to support the federal government's mission. However, GSA does not indicate this in the Annual Financial Report or clarify that the estimate excludes DM&R that is less urgent or has been deliberately deferred (e.g., for excess property or assets schedule for replacement through recapitalization).
|
| General Services Administration |
Priority Rec.
The Administrator of GSA should ensure that the administration develops a plan to address its DM&R backlog and identifies the funding and time frames needed to reduce this backlog in congressional budget requests, related reports to decision makers, or both. (Recommendation 11) |
As of February 2025, GSA officials stated they are continuing to develop a model to project the condition of its portfolio 10 years into the future. This model-which officials anticipate completing by March 2026-will allow GSA to identify the funding and timeframes needed to address the DM&R backlog.
|
| Office of Management and Budget | The Director of OMB should update its guidance on DM&R reporting to instruct agencies to communicate additional information to Congress and the public regarding their deferred maintenance and repair backlogs. This guidance should, at a minimum, instruct agencies to communicate explanations for major changes from year to year, categories of assets included in DM&R estimates, and the proportion of DM&R estimates needed to support the mission. (Recommendation 12) | Federal agencies face challenges in managing their portfolios of buildings and other real property and may postpone or "defer" maintenance and repairs. Over time, the failure to keep up with needed repairs reflected by this backlog can affect agencies' abilities to carry out their missions as well as decrease the quality or reliability of services through unplanned interruptions to facility systems and components. In recent years, agencies have reported substantial increases in their amounts of deferred maintenance and repair (DM&R). These increases make it particularly important to understand how agencies' methods of managing and reporting DM&R affect their estimates of maintenance and...
|