Environmental Compliance

Continued Need for Guidance in Programming Defense Construction Projects Gao ID: NSIAD-96-134 June 21, 1996

Since GAO last reported on this subject in 1993 (GAO/NSIAD-94-22), the military services have tried to improve the manner in which they program and prioritize environmental compliance construction projects. However, Defense Department (DOD) policy still does not specify how the military services should report costs for environmental compliance construction projects and how they should decide which appropriation account should provide the funds. Consequently, the military services and the Defense Logistics Agency continue to differ in how they classify and prioritize projects and how they determine their source of funding. These inconsistencies and lack of guidance inhibit congressional oversight and DOD program management. DOD's estimates for fiscal year 1997 environmental compliance construction requirements fell from $257 million in February 1995 to $84 million in April 1996. Because of the lack of a uniform approach to categorizing these projects, GAO cannot determine the precise reasons for this drop in funding.

GAO found that: (1) since GAO's November 1993 report, the services have initiated actions intended to improve their processes for programming and prioritizing environmental compliance construction projects; (2) however, neither the current nor proposed DOD policy specifies how the services should report costs related to environmental compliance construction projects and how they should determine which appropriation account should provide the funds; (3) consequently, the services and DLA continue to vary the manner in which they classify and prioritize the projects and determine the source of funds for them; (4) the continuing lack of such guidance and the inconsistencies inhibit congressional oversight and DOD's program management; (5) DOD-wide estimates for fiscal year 1997 environmental compliance construction requirements fell from $257 million in February 1995 to $84 million in April 1996; (6) due to the lack of a uniform approach to categorizing such projects, GAO cannot determine whether this drop in funding is a result of a reduction in the need for such projects or simply a reflection of differing procedures for categorization; (7) the reasons for reductions fell into several different categories, for example, lack of documentation, decisions to fund in later years, or decreased project costs.

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