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The Defense Logistics Agency Properly Awarded Power Purchase Agreements and the Army Obtained Fair Market Value for Leases Supporting Power Purchase Agreements

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Technical Report

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Department of Defense Inspector General Alexandria United States

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We determined whether the Department of the Army properly awarded and obtained fair market value for leases supporting energy production projects. We conducted this audit in response to an allegation reported to the Defense Hotline. The allegation stated that the Army and Navy leased land to utility companies to produce solar energy without using competitive procedures to select the lessee, and that the Army and Navy are not receiving fair market value for the land. This is the first in a series of audits related to leases supporting energy production projects and focuses only on the Army. We plan to review the Department of the Navy during the second audit in this series. As of March 2016, the Army had awarded three leases supporting energy production projects. We selected two of the three for reviewone at Fort Hood, Texas, and one at Fort Detrick, Maryland. The third project, at Fort Drum, New York, included a lease for less than an acre of land, so we did not review it.

Subject Categories:

  • Logistics, Military Facilities and Supplies
  • Administration and Management

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