Postal Service Procedures for Acquiring and Altering Leased Space Need Revision

Gao ID: PLRD-82-79 June 16, 1982

GAO made a review of the problems the Postal Service has experienced in acquiring and altering leased space. The Postal Service leases about 89 million square feet of space at an annual rental of about $234.6 million. During fiscal year 1981 approximately $27 million was spent on alterations of leased space.

GAO found that the Postal Service: (1) paid rent over extended periods for space not ready for occupancy in 10 major leased facilities; (2) frequently did not advertise its space requirements and obtained only limited competition in acquiring leased space; and (3) frequently did not prepare proper independent detailed cost estimates when it contracted with lessors for alterations on a sole-source basis.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: James G. Mitchell Team: General Accounting Office: Procurement, Logistics, and Readiness Division Phone: (202) 275-4128


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.