Defense Infrastructure: In-Kind Construction and Renovation Projects Initiated by DOD during Fiscal Year 2013
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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DOD uses in-kind payments domestically and overseas in its realestate transactions as an alternative to appropriated funds to help manage a global real-property portfolio that includes more than 555,000 facilities worldwide. In-kind payments refer to DOD receiving construction and renovation services rather than cash as payment for DOD providing goods, services, real property, or an interest in real property. The National Defense Authorization Act for Fiscal Year 2013 includes a provision for GAO to review the use of in-kind projects. This report identifies 1 the in-kind payment projects that DOD reported it initiated during fiscal year 2013, and discusses the potential advantages and disadvantages of accepting in-kind payments instead of cash for domestic real-estate transactions and 2 the extent to which the military services have developed and implemented guidance and procedures to value domestic inkind payments to ensure the receipt of fair-market value. The Act also provided for a listing of facilities constructed or renovated with the use of in-kind payments, and additional information, which GAO provides in appendixes to this report. To conduct this work, GAO collected in-kind project data from the military services, reviewed DOD and military service policy and project documentation, and interviewed military officials. GAO is not making recommendations in this report. DOD provided technical comments on the findings, which GAO has incorporated where appropriate.
- Economics and Cost Analysis
- Construction Equipment, Materials and Supplies
- Logistics, Military Facilities and Supplies