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Poor property management

By Gruber, Amelia
Publication: Government Executive
Date: Wednesday, October 1 2003

Despite efforts to identify and eliminate underused or vacant federal facilities, the three civilian agencies that own the most government real estate still waste a lot of space, according to a recent report from the General Accounting Office.

As of last fall, the General Services Administration,

Veterans Affairs Department and Postal Service together reported 927 empty or underused properties, according to the report (GAO-03-747).The properties total 32.1 million square feet. Veterans Affairs reported the bulk of the underused space, with 577 facilities, followed by GSA, with 236, and the Postal Service, with 114.

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This inventory of wasted space overstates the problem, GSA says. The agency says it has plans to use 43 of the properties, and officials say another 37 of the facilities could be used in the future. Veterans Affairs and the Postal Service agree with GAO's assessment.

Underused federal property wastes the taxpayers' money because obsolete facilities still must be maintained, the report said. Holding onto the facilities presents an image of inefficiency and ultimately erodes taxpayers' confidence in government, GAO said. Instead, GAO said, agencies should put the property to other uses or sell it.

Despite the harsh criticism, GAO praised the three agencies for their efforts to fix the problem. "All three agencies have recognized the importance of realigning their real property portfolios by identifying and disposing of unneeded real property," the report said.

-Amelia Gruber

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