Defense Infrastructure: Continuing Challenges in Managing DOD Lodging Programs as Army Moves to Privatize Its Program

The Department of Defense DoD transient lodging programs were established to provide quality temporary facilities for authorized personnel, and to reduce travel costs through lower rates than commercial hotels. DoD has approximately 82,000 temporary duty TDY and permanent-change-of-station PCS rooms worldwide. These accommodations were reported to cost about 860 million in appropriated and nonappropriated funds to operate in fiscal year 2005. While the Army plans to privatize its lodging in the United States, there are concerns as to whether these plans are cost-effective, and about how they relate to DoD-wide lodging efforts. GAO was asked to address the following issues 1 how each military service and DoD manages, funds, and assesses the performance of its lodging programs to meet short- and long-term needs and 2 the effect that lodging privatization would have on costs to the Army and on its ability to maintain and recapitalize facilities. GAO also is providing information on the status of DoDs actions on prior recommendations regarding the lodging program. GAO obtained data from the Office of the Secretary of Defense, the military services, and nine military installations. GAO is making recommendations to improve DoDs oversight of the lodging program. In commenting on a draft of this report, DoD agreed with the recommendations.