Financial Condition of Federal Buildings Owned by the General Services Administration

Correspondence issued by the General Accounting Office with an abstract that begins "The General Services Administration (GSA) manages over 1,700 federally owned buildings with $5.7 billion in identified repair and alteration needs. GAO was asked to review the situation, but at the time the review started, the Public Building Service (PBS) also began a review, and, consequently, GAO reviewed the PBS review. PBS described the building inventory as predominantly aged with reinvestment needs that far exceed the capabilities of the Federal Buildings Fund--a revolving fund administered by the GSA. PBS analyzed 1,375 of GSA's 1,745 federally owned buildings. Each was placed into one of four categories. Buildings termed "nonperforming" do not generate sufficient income to cover their expenses and to set aside a minimal amount for future repair and alteration needs or replacement. Buildings termed "poor" generate sufficient income to cover their expenses and a minimal reserve. Buildings termed "good" pass the prior two tests and have a return of investment (ROI) of at least 6 percent, but their conditions are considered poor, and they have high reinvestment needs. Buildings termed "solid" are those that generate more than 6 percent ROI and are in good condition, thus having relatively low reinvestment needs.