Defense Infrastructure: DOD Needs Clearer Guidance on Notifying Congress of Privately Financed Construction Projects

Abstract : In addition to construction projects funded with military construction appropriations, DOD has projects funded by other sources, such as revenue-generating activities and private financing. The National Defense Authorization Act for Fiscal Year 2016 included a provision that GAO report on DODs commissary surcharge, nonappropriated fund, and privately financed major construction program. GAO evaluated the extent to which DOD implemented policies and procedures for timely notification to Congress of major construction projects conducted through this program. GAO reviewed annual reports to Congress on such projects; analyzed policies from DOD and its relevant components; interviewed cognizant officials; and reviewed other relevant documentation. GAO is making three recommendations, including that DOD revise its policy on congressional notification of privately financed major construction projects to clarify which types of projects should be reported, identify a lead organization to develop DOD-wide policy for gifts of major construction, and develop clear policy on congressional notification of gifts of major construction. DOD concurred with the first of these recommendations and did not concur with the second and third. GAO continues to believe that DOD should take these actions because the military departments have not been providing consistent and complete information on gifts of major construction to Congress.