Review of the Consolidation of the Department of Energy in the Forrestal Building

Gao ID: LCD-78-326 May 9, 1978

Concern was expressed over whether the relocation of all Department of Energy activities into the James Forrestal Building was cost effective and whether the decision was based on an economic analysis of the cost and intangible benefits. No economic analysis was performed to evaluate the cost effectiveness of the move. The President decided to assign the Forrestal Building to the Department of Energy based on its size, prominent location, and accessibility to the public. The General Services Administration (GSA) estimated the cost of the move at about $22 million; the Department of Energy reduced the estimate to about $17 million. The 1978 Supplemental Appropriations Act authorized the $17 million requested by the Department of Energy for the move. GSA has formulated plans to relocate the present occupants of the Forrestal Building and move in Department of Energy headquarters organizations. Complete turnover of the building to the Department of Energy may take several years.

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