DOD Rental Payments to GSA

Gao ID: T-GGD-92-31 April 8, 1992

The disrepair of the Pentagon and a mere one-percent decrease in Defense Department rent payments to the General Services Administration (GSA) during a period of downsizing are classic examples of structural and managerial weaknesses plaguing the Federal Building Fund, GSA's method of financing federal facilities. The growing realization that the Fund has failed to live up to expectations has resulted in gradual withdrawal of support for the concept. Not only has the Pentagon been removed from GSA's custody, but Congress has authorized other agencies like the Securities and Exchange Commission to renovate or lease their own buildings and may remove several hundred courthouses from the Fund as well. In addition, legislation has been introduced recently that would abolish the Federal Building Fund and return the financing of all of GSA's building operating and capital costs to their regular appropriations process.



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