State Department

Reacting to rapid and dramatic political changes in the former Soviet Union and Eastern Europe, the U.S. government plans to acquire large amounts of real estate for diplomatic office space and housing. GAO reviewed the State Department's actions and plans for new facilities in the region. This report discusses: (1) the progress and costs associated with facility acquisitions and renovations; (2) building security and safety measures and how they differ from Department standards; and (3) the role of the U.S. Army Corps of Engineers in helping the Department renovate selected posts.

GAO found that: (1) State has occupied or leased 13 of 14 embassies, but has not acquired all the necessary embassy staff residences require due to difficulties in finding suitable housing; (2) State is considering acquiring and shipping U.S.-manufactured housing units to several posts; (3) initial cost outlays are expected to be insubstantial due to the lease of structures rather than purchase or construction; (4) estimates for the initial outlay for leasing embassy buildings and housing total $3 million to $6 million per year; (5) renovation cost estimates for 6 of the proposed facilities total $44 million, or approximately $7.3 million per location, and total renovation cost estimates for all 14 locations total $100 million; (6) earthquake prevention and higher transportation costs could increase embassy renovation costs in the Central Asian republics; (7) the 14 embassy buildings selected do not and can not, even including renovation, meet State standards for security, electrical, plumbing, safety, and fire systems; (8) the Corps of Engineers will oversee renovations of the first 6 embassies; and (9) delays in the renovation schedule are expected and involve continued leasing problems, previous tenant evacuation, logistical problems, and harsh winter weather conditions.