Corps of Engineers Procedures for Acquiring and Altering Leased Space Need Revision

Highlights

GAO reviewed selected Corps of Engineers' practices and procedures for acquiring and altering leased space to determine whether the Corps is following sound leasing procedures and practices.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to monitor the leasing program to ensure that space requirements are normally advertised and maximum competition is obtained through formal solicitations for offers. Whenever space requirements are not advertised, the lease file should contain written justification for not advertising.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to revise the Corps' real estate handbook to require independent detailed cost estimates based on final plans and specifications when the Corps contracts on a sole-source basis with lessors for alteration work anticipated to cost over a specified threshold amount.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to issue instructions to district real estate officials not to enter into year-to-year leases which are contingent on the availability of appropriated funds for the payment of rent when leasing under multiyear authority delegated by the General Services Administration.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to attempt to reach agreement with the lessor to eliminate the provision for escalation of net rent in the International Tower Building lease and issue instructions to district real estate officials not to accept such a lease escalation provision in future leases.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to issue instructions requiring the Corps, whenever possible, to avoid paying rent for space before it is ready for occupancy. In those cases where rent is paid before occupancy, the Corps should attempt to negotiate a reduction in rent for reduced maintenance and other operating costs during vacancy periods.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Corps of Engineers	The Secretary of the Army should direct the Chief of Engineers to issue instructions to contracting officers to determine whether negotiated rentals on applicable leases are within the Economy Act limit prior to signing the leases.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Government Operations

Army procurementCompetitionProperty and supply managementReal estate leasesEngineersLeased spaceMilitary forcesCost estimatesGovernment procurementModifications