FEDERAL BUILDING 

MANAGEMENT

Building Disposal 

Authorities Provide 

Varying Degrees of 

Flexibility and 

Opportunities for Use 

Report to Congressional Requesters

December 2016

GAO-17-123

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-17-123, a report to 

congressional requesters

December 2016

FEDERAL BUILDING MANAGEMENT

Building Disposal Authorities Provide Varying 

Degrees of Flexibility and Opportunities for

Use 

What GAO Found

Twenty civilian federal entities reported they have at least one statutory authority 

that allows them to dispose of federally owned buildings under their control. 

Fifteen entities reported the authority to retain proceeds from building disposals. 

However, most of these federal entities reported limited use of their independent 

authorities during fiscal years 2011 through 2015. Seven entities that reported 

having disposal authority used it during this time frame, and 5 entities that 

reported having authority to retain proceeds did so (see figure below). The scope 

of disposal authorities varies among entities; about half have broad authority but 

these entities only account for about 9 percent of domestic federal buildings. 

Other authorities are limited, for example, to specific types of facilities or 

methods of disposal. In addition, statutory authorities to retain proceeds also 

vary, with most restricting how a federal entity may use the proceeds. 

Five of the 7 entities that reported using their independent disposal authority

reported using it for only about 8 percent of the buildings they disposed of in 

fiscal year 2015. The General Services Administration (GSA) and the U.S. Postal 

Service (USPS) have broad authorities that were used for all of their disposals. 

The five federal entities that retained proceeds reported about $557 million from

all building sales, not just those in which they used their authority from fiscal 

years 2011 through 2015. Of this amount, USPS’s building disposals accounted 

for $446 million, GSA for $89 million, and the other 3 entities accounted for the 

remaining $22 million.

Officials from most of the federal entities GAO interviewed said building disposal 

decisions are mainly based on mission needs rather than the authorities.

Officials from 5 entities said they would like the authority to use proceeds from 

building sales to cover costs of preparing buildings for disposal, such as the cost 

of environmental remediation. Currently, up-front disposal costs compete with

ongoing operations and maintenance costs for budget resources.

Statutory Limitations of Authorities to Dispose Buildings and Retain Proceeds

View GAO-17-123. For more information, 

contact Dave Wise at (202) 512-2834 or 

wised@gao.gov

Why GAO Did This Study

Federal property management has 

been on GAO’s High-Risk list since 

2003, in part because the government 

maintains too much excess and 

underutilized property. GSA has the 

authority to dispose of property for all

federal entities under the Federal 

Property and Administrative Services 

Act of 1949, as amended. However, 

some federal entities (either 

departments or departmental 

components) have been provided with 

independent statutory authority to 

dispose of buildings and other types of 

property and, in some cases, retain 

proceeds from such disposals. 

GAO was asked to review the extent to 

which federal entities have disposal 

authority independent of the Property 

Act, including the authority to retain 

proceeds. This report examines (1) 

the scope of building disposal 

authorities held by civilian Chief 

Financial Officer Act (CFO Act)

agencies and USPS; (2) the results of 

these federal entities’ use of their 

disposal authorities during fiscal years 

2011 through 2015; and (3) the factors 

that drive building disposal decisions, 

and what additional authorities officials 

at selected federal entities believe 

could help facilitate these disposals.

GAO surveyed 22 CFO Act agencies, 

interviewed officials from 12 federal 

entities that reported having disposal 

authority, reviewed statutory authorities 

and guidance materials, and analyzed 

disposal data from fiscal years 2011 

through 2015 for these entities.

GAO provided a draft of this product to 

15 agencies for comment and 8

provided technical comments, which 

were incorporated as appropriate.
Page i GAO-17-123 Federal Building Management 

Letter 1

Background 4

The Scope of Both Disposal and Retention of Proceeds 

Authorities Varies Widely 8

Most Federal Entities Reported Limited Opportunities to Use Their 

Authorities to Dispose of Buildings and Retain Proceeds 13

Selected Federal Entities Reported That Mission Needs Drive 

Building Disposal Decisions and That Their Disposal Authorities 

Did Not Address Their Disposal Challenges 22

Agency Comments 24

Appendix I Objectives, Scope, and Methodology 27

Appendix II Disposal Authorities and Retention of Proceeds Authorities 

Reported by 22 Federal Entities 30

Appendix III Enacting Legislation for Disposal Authorities and Retention of 

Proceeds Authorities of Federal Entities 39

Appendix IV GAO Contact and Staff Acknowledgments 43

Related GAO Products 44

Table

Table 1: Federal Entities’ Reported Use of Disposal Authority, 

Fiscal Year 2015 15

Figures

Figure 1: GSA’s Process for Disposing of Real Property Using Its 

Own Authorities 6

Contents
Page ii GAO-17-123 Federal Building Management 

Figure 2: Federal Entities That Reported Having Authority to 

Dispose of Buildings or Retain Proceeds from Building 

Disposal 9

Figure 3: Restrictions on Building Disposal and Retention of 

Proceeds Authorities 11

Figure 4: Federal Entities Reported Use of Disposal and Retention 

of Proceeds Authorities, Fiscal Years 2011—2015 14

Figure 5: An Excess FAA Building Located on Airport Property 17

Figure 6: Disposition Methods Reported by 20 Federal Entities 

and USPS, Fiscal Years 2011—2015 18

Figure 7: Number of Buildings Disposed of by Sale and Aggregate 

Gross Proceeds Reported by Five Entities That Reported 

Having Authority to Retain Proceeds, Fiscal Years 

2011—2015 20

Abbreviations

CFO Chief Financial Officer Act 

EUL enhanced-use lease (authority)

FAA Federal Aviation Administration

FBF Federal Buildings Fund 

FRPP Federal Real Property Profile 

GSA General Services Administration 

ICE Immigration and Customs Enforcement

IHS Indian Health Service 

OMB Office of Management and Budget 

PBC public conveyance benefit

USPS United States Postal Service 

VA Department of Veterans Affairs

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be 

necessary if you wish to reproduce this material separately.
Page 1 GAO-17-123 Federal Building Management 

441 G St. N.W.

Washington, DC 20548

December 8, 2016

Congressional Requesters

The federal government’s real estate portfolio is vast and diverse, 

including approximately 112,000 civilian agency buildings in the United 

States.1 Federal real property management has been on our High-Risk 

list since 2003, in part because we have found that the government 

maintains too much excess and underutilized property.2 In addition, 

agencies continue to face long-standing challenges in disposing of 

buildings. In recent years the federal government has taken steps to 

improve the management of its real property. In 2013, the Office of 

Management and Budget (OMB) implemented the “Freeze the Footprint”

policy, which instructed federal agencies to not increase total square 

footage of their domestic office and warehouse inventory. Subsequently, 

in March 2015 OMB issued the National Strategy for the Efficient Use of 

Real Property, which included OMB’s “Reduce the Footprint” policy. This 

policy aims to reduce the amount of property held by the government. In 

addition, since 2012, a number of bills have been introduced in Congress 

that have sought to reduce the cost of federal real estate by expediting 

the disposal of excess and underutilized property.

The Federal Property and Administrative Services Act of 1949, as 

amended, (the Property Act)3 provides the General Services 

Administration (GSA) the authority to dispose of property for all federal 

entities. In addition, some federal entities have independent statutory 

authority to dispose of buildings and other types of property, and in some 

cases, retain proceeds from such disposals.4 You asked us to review the 

extent to which federal agencies have disposal authority independent of 

 1 This number reflects data—as of September 30, 2015—as reported by civilian agencies 

subject to the CFO Act of 1990 to the Federal Real Property Profile (FRPP) database 

under Executive Order 13327. We included only buildings located in the United States. 

Some agencies, such as the United States Postal Service, are not required to submit real 

property data to the FRPP and are therefore not included in this number.

2 GAO, High-Risk Series: An Update, GAO-15-290, (Washington D.C.: February 2015).

3 The Federal Property and Administrative Services Act of 1949 is codified primarily at 

subtitle I of title 40.

4 For the purposes of this report we refer to federal entities’ independent disposal 

authorities and authorities to retain proceeds as “disposal authorities.”

Letter
Page 2 GAO-17-123 Federal Building Management 

the Property Act, including the authority to retain proceeds. This report 

examines: (1) the scope of building disposal authorities held by civilian 

Chief Financial Officer (CFO) Act agencies and the United States Postal 

Service (USPS); (2) the results of these federal entities’ use of their 

disposal authorities from fiscal years 2011 through 2015; and (3) the

factors that drive federal entities’ building disposal decisions, and what 

additional authorities officials at selected federal entities believe could 

help facilitate disposals.

To identify the scope of disposal authorities, we surveyed 22 civilian CFO 

Act agencies5 regarding their authority to dispose of owned buildings6 and 

retain any proceeds resulting from those disposals.7 We reviewed the 

authorities these entities reported, as well as the authorities provided to 

GSA and USPS to dispose of buildings, and summarized the 

characteristics and scopes of these authorities. For example, we 

reviewed disposal authorities to determine what if any limitations they 

imposed. We excluded authorities that we determined to be a directed 

authority, which are authorities provided in law that direct an entity to 

dispose of a particular facility or facilities and, in some cases, also identify 

a specific recipient of the property.

To determine the results of the entities’ use of their disposal authority,8

using the same survey instrument to ask responding entities to report the 

extent to which they used their authorities to dispose of buildings during 

the fiscal year 2011 through 2015 time frame and, if applicable, the extent 

to which the authority to retain proceeds was used. We also analyzed the 

Federal Real Property Profile (FRPP) database maintained by GSA for 

the same time frame to corroborate responses, identify the disposal 

methods that entities reported during that time, and identify the proceeds, 

 5 The CFO Act agencies are the executive branch agencies listed at 31 U.S.C. § 901(b).

The USPS is not included as a CFO Act agency.

6 For the purposes of this report, we are limiting our review to buildings located in the 

United States. GSA’s guidance for real property inventory reporting defines a building as 

“a constructed asset that is enclosed with walls and a roof that provides space for 

agencies to perform activities or store materials as well as provides space for people to 

work in”.

7 There are 24 CFO Act agencies. We did not survey the Department of Defense, 

because our scope was the civilian agencies. We did not survey GSA, as the purpose of 

the survey was to identify authorities other than the Property Act.

8 In this report we use the term “federal entities” and “entities” to include only civilian 

agencies and components subject to the CFO Act as well the USPS.
Page 3 GAO-17-123 Federal Building Management 

if any, from building disposals.9 To assess the reliability of FRPP data, we 

(1) reviewed existing documentation related to the data, (2) conducted 

electronic testing of the data to identify problems with completeness and 

accuracy, and (3) interviewed knowledgeable agency officials about the 

data. We determined that the data were sufficiently reliable for the 

purposes of this report.

To obtain additional information on the results of these disposals, and 

how disposals are prioritized, we interviewed officials from 11 of the 14

federal entities that reported having authority to both dispose of buildings 

and retain proceeds from such disposals and officials from one agency 

with the authority to dispose of buildings but not retain proceeds. We also 

interviewed officials at an additional entity that reported having the 

authority to dispose of buildings but not to retain proceeds. With all of 

these entities, we discussed the scope and use of their authorities for 

building disposals from fiscal years 2011 through 2015. We also asked 

officials from these entities how they prioritized building disposals, how 

their disposal authority may have influenced their decisions, and what 

additional disposal authorities they believe could facilitate additional 

disposals.

To obtain more detailed information about specific building disposals, we 

reviewed documents for three to five disposals from four federal entities 

that used their disposal authority during fiscal years 2011 through 2015.

From each of the four federal entities, we selected three to five disposals 

that varied in building value, size, location and year of sale. We used this 

information to help characterize the entities’ disposal priorities and 

processes, gather information on proceeds retained from disposals, and 

to identify challenges to conducting building disposals. The information 

from these specific building disposals is not generalizable to all disposals.

We conducted this performance audit from February 2016 to December 

2016 in accordance with generally accepted government auditing 

standards. Those standards require that we plan and perform the audit to 

obtain sufficient, appropriate evidence to provide a reasonable basis for 

our findings and conclusions based on our audit objectives. We believe 

 9 All CFO Act agencies are required to report all owned and leased properties (buildings, 

lands, and structures) in FRPP on an annual basis. In the case of buildings, information 

reported includes, among other things, the location, annual operating costs, square 

footage, utilization, and condition. Disposal information is also collected including the 

disposal method, disposal date, and if the building is sold, the actual sales price.
Page 4 GAO-17-123 Federal Building Management 

that the evidence obtained provides a reasonable basis for our findings 

and conclusions based on our audit objectives.

Federally owned civilian buildings range from multi-story buildings located 

in urban centers to remotely located storage facilities in national parks or 

national forests. Federally owned buildings are used for offices, 

warehouses, schools, hospitals, housing, data centers, and laboratories, 

among others uses. Similarly, the value of federal buildings varies 

significantly, ranging from nothing for buildings in poor condition to 

millions of dollars for former postal facilities.

Within the executive branch, OMB and GSA provide leadership managing 

federal real property. As the chief management office for the executive 

branch, OMB is responsible for overseeing how federal entities devise, 

implement, manage, and evaluate programs and policies. OMB also 

develops and provides direction to federal entities on real property 

management matters. GSA has two key leadership responsibilities 

related to managing the federal government’s real property. First, GSA 

acquires, manages, and disposes of federally owned real property for 

which it has custody and control. This function is commonly referred to as 

the landlord role since GSA performs these services on behalf of other 

federal entities that occupy the properties. Second, GSA’s Office of 

Government-wide Policy is tasked with, among other things, identifying, 

evaluating, and promoting best practices to improve the efficiency of 

management processes. In this policy role, GSA also provides guidance 

for federal entities, publishes performance measures, and maintains the 

FRPP database.

The FRPP was created in accordance with Executive Order 1332710 and 

contains data on federal real property assets worldwide, including 

information on disposals of federally-owned buildings. Real property data 

is collected and reported to the FRPP on an annual basis by all CFO Act 

agencies and others that have control and responsibility for federal real 

property. They report, among other things, how and when buildings were 

disposed of and, if applicable, proceeds generated from the disposal.

FRPP is maintained at the asset level for land, buildings, and structures.

Some disposals include multiple assets in a transaction. For example, a 

 10 Executive Order No. 13327, Federal Real Property Asset Management, 69 Fed. Reg. 

5997 (Feb. 6, 2004).

Background
Page 5 GAO-17-123 Federal Building Management 

disposal may include multiple buildings and the land on which they were 

built. In that scenario, each land parcel, building, and structure is 

recorded separately as a disposed asset.

GSA plays a central role in disposing of unneeded property for the federal 

government. The Property Act gives GSA the authority to dispose of 

property for most federal entities and mandates the process to be used. 

This activity is conducted by GSA’s Public Building Service (see fig. 1). 

GSA initiates its disposal process when a federal entity determines it no 

longer needs a building and notifies GSA. As illustrated in figure 1, 

federally owned buildings may be disposed of through several different 

methods depending on the particular circumstances. These methods 

include transfer to another federal entity, conveyance to another public 

entity for public benefit uses, such as homelessness assistance or 

education, and sale. We have found in the past that the disposal process 

can be time consuming.11

 11 GAO, Federal Real Property: National Strategy and Better Data Needed to Improve 

Management of Excess and Underutilized Property, GAO-12-645 (Washington, D.C: June 

2012).
Page 6 GAO-17-123 Federal Building Management 

Figure 1: GSA’s Process for Disposing of Real Property Using Its Own Authorities

Some federal entities have statutory authority to dispose of buildings 

independent of the Property Act. Federal entities with independent 

disposal authority are not required to notify or use the services of GSA to 

complete the disposal; however, federal entities with disposal authority 

may choose to hire GSA to act as its agent or broker for building disposal 

purposes. In such cases, the entity pays GSA for the services it performs 

in disposing of a building. In addition, a federal entity with independent 

disposal authority may request GSA to dispose of a building under the 

Property Act.

Federal entities are also authorized in certain circumstances, to dispose 

of buildings through demolition and donation whether or not they have 

independent disposal authority. Specifically, federal entities that have 

control of real property are authorized to demolish or donate to a public 

body buildings that have no commercial value or for which the estimated 
Page 7 GAO-17-123 Federal Building Management 

cost of continued care and handling exceeds the estimated proceeds 

from the sale.12

OMB has undertaken several initiatives and issued guidance to federal 

entities to improve the management of federal real property and address 

long-standing issues.13 In March 2015, OMB introduced the National 

Strategy for Efficient Use of Real Property to improve federal utilization of 

the real property portfolio. The National Strategy adopts a three-pronged 

policy framework to improve the cost effectiveness and efficiency of the 

federal real property portfolio. First, it aims to freeze federal real property 

growth. Second, it identifies policy actions to measure the cost and 

utilization of real property assets. Finally it identifies actions to reduce the 

size of the federal property portfolio. Specifically, OMB issued the 

“Reduce the Footprint” policy which directed each federal entity to 

establish reduction targets for office space, warehouse space, and the 

disposal of federally owned buildings beginning in fiscal year 2016.

In addition, several real property reform bills were introduced in Congress 

in recent years. For example, during the 114th Congress, two bills were 

introduced and passed by the House of Representatives, but have not 

been enacted. The proposed Federal Asset Sale and Transfer Act of 

2016 would establish a Public Buildings Reform Board to identify 

opportunities for the federal government to reduce its inventory of civilian 

real property and reduce its costs.14 The proposed Public Buildings 

Report and Savings Act of 2016 would promote consolidation and 

disposal by requiring, among other things, that GSA justify to Congress 

any new or replacement building space beyond a specified value, 

including reasons that it cannot be consolidated or collocated into other 

owned or leased space.15

 12 40 U.S.C. § 527: 41 C.F.R. § 102-75.990.

13 These initiatives and guidance also apply to non-civilian agencies such as the 

Department of Defense and the Armed Services. However, as previously noted, this report 

only addresses civilian federal agencies subject to the requirements of the Chief Financial 

Officers (CFO) Act.

14 H.R. 4465, 114th Cong. (2016).

15 H.R. 4487, 114th Cong. (2016).
Page 8 GAO-17-123 Federal Building Management 

In all, 20 federal entities in our review reported having at least one 

statutory disposal authority that allowed them to dispose of domestic 

buildings. Some independent disposal authorities apply at the agency or 

department level, such as those held by the Department of Veterans 

Affairs (VA), while others apply at a component level, such as the 

authority provided to the Federal Aviation Administration (FAA), within the 

Department of Transportation. Fourteen of these 20 entities, plus Federal 

Prison Industries, reported having statutory authority to retain proceeds 

from building disposals.16 (See app. II). The following nine CFO Act 

agencies reported having neither disposal authority nor the authority to 

retain proceeds: The Departments of Commerce, Education, Housing and 

Urban Development, and the Interior; the National Aeronautics and Space 

Administration; Office of Personnel Management; Small Business 

Administration; Social Security Administration; and the United States 

Agency for International Development. Figure 2 shows the federal entities 

that reported having disposal authority, and those that reported having 

the authority to retain proceeds.

 16 Federal Prison Industries, within the Department of Justice, reported having broad 

authority to retain proceeds, but did not report having the authority to dispose of buildings.

The Scope of Both 

Disposal and 

Retention of 

Proceeds Authorities 

Varies Widely

Twenty Federal Entities 

Reported Having Building 

Disposal Authority and 15 

Reported Having Authority 

to Retain Proceeds from 

Building Disposals
Page 9 GAO-17-123 Federal Building Management 

Figure 2: Federal Entities That Reported Having Authority to Dispose of Buildings or Retain Proceeds from Building Disposal 

Eight of the federal entities reported having multiple statutory authorities 

to dispose of buildings and retain proceeds applicable to different 
Page 10 GAO-17-123 Federal Building Management 

situations. For example, the Indian Health Service, within the Department 

of Health and Human Services, reported having three statutory authorities 

to dispose of buildings that can be used under different circumstances.

Disposal authorities for two of the federal entities included sunset 

provisions. One authority for the Forest Service, which was enacted as a 

provision within an appropriations act, expired at the end of fiscal year 

2016,

17 and one of VA’s authorities expires on December 31, 2018.18

Some authorities do not have sunset provisions but were established 

decades ago and are now very rarely, if ever used. For example, one of 

DOE’s disposal authorities was established in 1955 to support local 

governance of atomic energy communities that had previously been 

managed by the federal government.19 According to DOE officials, this 

authority has not been used for over 15 years.

About half of the federal entities have broad authority to dispose of 

buildings, an authority that applies to the entities’ entire portfolios, but 

those portfolios only account for about 9 percent of the federally owned 

civilian buildings reported to FRPP. USPS does not report into FRPP, 

and was the only entity in our review with more than 100 buildings that 

had no restrictions on its authority to dispose of buildings or on its

authority to retain proceeds from disposals. The other federal entities’ 

authorities are limited based on factors such as facility type or program. 

Buildings that are excess to a federal entity’s needs and that are not 

covered by the entity’s disposal authorities must be disposed of by GSA 

under the Property Act, unless the entity chooses to dispose of the 

buildings through demolition or donation. Some federal entities have 

multiple authorities that may have differently defined scopes. Figure 3 

identifies if at least one of a federal entity's disposal authorities is 

restricted to certain circumstances or factors, and if at least one authority 

for the use of sales proceeds also has a statutory restriction.

 17 16 U.S.C. § 580d (note).

18 38 U.S.C. § 8118.

19 Pub. L. No. 84-221, 69 Stat. 476 (Aug. 4, 1955) (codified at 42 U.S.C. § 2342). See 

appendix III.

The Scope of Disposal 

Authorities Varies, with 

Some Providing Broad 

Authority While Others Are 

Narrow
Page 11 GAO-17-123 Federal Building Management 

Figure 3: Restrictions on Building Disposal and Retention of Proceeds Authorities

Note: Some entities have multiple authorities which may have differently defined scopes.

Some disposal authorities are limited to the disposal of specific types of 

facilities, or facilities associated with specific programs. One of FAA’s 
Page 12 GAO-17-123 Federal Building Management 

disposal authorities, for example, is limited to airport or airway property, 

and the Immigration and Customs Enforcement’s (ICE) authority is limited 

to disposal of service processing centers and detention facilities. DOE 

reported having three disposal authorities but none provides far-reaching 

authority for all DOE buildings. One authority is derived from the Atomic 

Energy Act of 1946, as amended, and only applies to specific activities 

conducted under that act, as amended. One is specific to buildings 

located in Oak Ridge, Tennessee, and Richland, Washington, while the 

third relates to buildings held by DOE’s Bonneville Power Administration.

In addition, some authorities prescribe a specific method of disposal or 

exempt an entity from certain legal requirements that generally pertain to

disposals. Authorities provided to the Indian Health Service (IHS), for 

example, are intended to support tribal entities and authorize IHS to 

donate excess property to tribes, tribal organizations, and urban Indian 

organizations at no cost, under certain circumstances but do not 

authorize other disposal methods such as sale. Most federal entities with 

disposal authority must follow the requirements of the McKinney-Vento 

Homeless Assistance Act (McKinney-Vento Act).20 The Act created a 

program to assist the homeless, in part, by identifying unused federal real 

property and making it available to homeless assistance providers.

However, some entities’ disposal authorities exempt them from such 

requirements and thus simplify the disposal process. For example, 

according to Coast Guard officials, one of their disposal authorities 

exempts them from the McKinney-Vento Act requirements as well as from 

the requirement to report to GSA excess real property for potential use by 

other federal entities.21 USPS has independent disposal authority, and its 

own authorities exempt it from the McKinney-Vento Act requirements as 

well as reporting excess property to GSA.22

Statutory authorities to retain proceeds from building disposals also vary. 

Some authorities require congressional action for the use of proceeds 

while others do not. For example, the Maritime Administration must 

deposit sales proceeds into a Treasury fund, and the funds are not 

available to the agency until a subsequent appropriation is enacted; in 

 20 Pub. L. No. 106-400, 114 Stat. 1675 (2000). The Stewart B. McKinney Homeless 

Assistance Act, enacted in 1987, was renamed the McKinney-Vento Homeless Assistance 

Act in October 2000.

21 14 U.S.C. § 685.

22 See, e.g., 39 U.S.C. § 410(a).
Page 13 GAO-17-123 Federal Building Management 

contrast, the St. Lawrence Seaway Development Corporation is broadly 

authorized to use proceeds from building disposals toward mission 

activities without express restriction or limitation. Other authorities limit 

the use of sales proceeds to specific programs. The Department of Labor, 

for example has the authority to retain proceeds from the sales of Job 

Corps center facilities, but restricts the use of those proceeds to carry out 

the Job Corps’ programs. Some entities, such as VA, also noted that their 

proceeds from building disposals would be off-set; that is, their 

appropriation is subject to a reduction equal to the amount of the 

proceeds; thus, the proceeds do not increase funds available to the entity.

From fiscal years 2011 through 2015, 7 of the 20 federal entities that 

reported having building disposal authority reported using that authority. 

The remaining 13 federal entities reported that they did not use their 

authority during that time frame. Among the 15 federal entities that 

reported having authority to retain proceeds, 5 reported using that 

authority. Figure 4 shows reported use of these authorities within our 

selected time frame.

Most Federal Entities 

Reported Limited 

Opportunities to Use 

Their Authorities to 

Dispose of Buildings 

and Retain Proceeds

About One-Third of 

Federal Entities Reported 

Using Their Disposal 

Authorities during Fiscal 

Years 2011 through 2015 

but for a Minority of Their 

Total Building Disposals
Page 14 GAO-17-123 Federal Building Management 

Figure 4: Federal Entities Reported Use of Disposal and Retention of Proceeds Authorities, Fiscal Years 2011—2015 

Five of the 7 federal entities that reported using their disposal authority 

during the selected time frame of our review indicated that they did so 
Page 15 GAO-17-123 Federal Building Management 

infrequently. As discussed earlier, some federal entities’ disposal 

authorities are narrowly framed to apply only to certain programs or 

facilities and thus apply to a limited number of the entities’ federally 

owned buildings. All 5 of these entities’ disposal authorities have use

restrictions, and consequently many buildings may have been ineligible 

for disposal under the entities’ disposal authorities. We requested data on 

building disposals by these five entities on the use of their own disposal 

authority for the selected time frame, but we were only able to obtain 

information from all five entities for fiscal year 2015. These five federal 

entities reported disposing of 801 buildings in fiscal year 2015, but only 

used their authority for 67 (about 8 percent) of their total building 

disposals. (See table 1). The other two entities, GSA and USPS, which 

have very broad disposal authority, used their disposal authority for all of 

the buildings they disposed of that year—which was 12 and 15 buildings, 

respectively.

Table 1: Federal Entities’ Reported Use of Disposal Authority, Fiscal Year 2015

Buildings 

reported 

disposed of 

using entities’ 

disposal 

authority

Total buildings 

reported 

disposed

Percentage of 

building 

disposals using 

entities’ disposal 

authority

Department of Energy 1 85 1%

Indian Health Service 5 21 24%

Forest Service 36 250 14%

Coast Guard 20 151 13%

Federal Aviation Administration 5 294 2%

Total 67 801 8%

Source: GAO survey results and analysis of data provided by each federal entity and Federal Real Property Profile.| GAO-17-123

Note: We excluded USPS and GSA from this analysis as both entities have broad authorities and use 

these authorities for all building disposals.

VA officials told us that they had never used two of their independent 

disposal authorities in part due to statutory limitations. Under one of the 

entity’s disposal authorities, all proceeds from building disposals must be 

deposited into the VA Capital Asset Fund, and VA may not obligate these 

funds without further congressional action. In addition, according to VA 

officials, these collections are off-set, meaning that increases to the fund 

balance from sales result in identical reductions in VA’s appropriation.

Further, this authority requires VA to first determine whether the property 

is suitable for use by another entity under its enhanced-use lease (EUL) 
Page 16 GAO-17-123 Federal Building Management 

authority before using its disposal authority. VA officials said it was 

advantageous to enter into EUL agreements to manage underused and 

unutilized buildings in their portfolio rather than disposal.23 Officials stated 

that a long-term EUL (as long as 75 years) effectively functions like a 

disposal because VA has no day-to-day responsibility for the building 

over an extended period of time. Further, VA officials said that their EUL 

authority offers more flexibility to use the proceeds that may result from 

lease arrangements. Specifically, VA’s EUL authority allows funds to be 

available for furnishing medical care without fiscal year limitation.24 

Although entering into an EUL does not constitute a disposal, VA’s EUL 

authority does allow for the potential disposal of property leased under 

that authority. If during the term of the EUL or within 30 days of its 

termination, it is determined that the property is no longer needed, VA 

may initiate action to transfer the property to the lessee. According to VA 

officials, this disposal authority has been used in the past, but not during 

the 5-year time frame included in our review.

Another condition limiting some federal entities’ use of their building 

disposal authorities was the location of unneeded buildings within federal 

campuses or secure facilities, particularly when the entity was not 

disposing of the underlying land. In these situations, the building is 

typically made available for “offsite use only,” i.e. the conveyee or 

purchaser would have to remove the building from the site at their own 

cost. For example, the buildings eligible for disposal under FAA’s disposal 

authority were often located within the secure area of an airport and 

tended to be small sheds enclosing technical equipment. According to 

FAA officials, these smaller buildings were notably different from common 

perceptions of federal buildings such as courthouses, post offices, and 

agency headquarters, which are large and sometimes designed to serve 

symbolic, ceremonial, and other purposes of government. Figure 5 shows 

a prefabricated concrete building located on airport property that FAA 

sold to a private company for $500 in 2014.

 23 Enhanced use leases (EUL) are typically long-term agreements with public and private 

entities for the use of federal property, resulting in cash and or in-kind consideration for 

the federal entity. VA, however, does not have the authority to accept in-kind contributions 

for EULs. 38 U.S.C. § 8162(b)(3).

24 38 U.S.C. § 8165(a)(1) and 38 U.S.C. § 1729A(b)(8), (c)(1)(A).
Page 17 GAO-17-123 Federal Building Management 

Figure 5: An Excess FAA Building Located on Airport Property

The results of building disposal by federal entities with disposal authority 

are directly related to the method of disposal. According to FRPP data, 

the 20 federal entities with disposal authority disposed of more than 5,400 

buildings during fiscal years 2011 through 2015. The total includes all 

buildings disposed of by those entities during the 5-year period, 

regardless of the authority used (i.e., a disposal could have been 

pursuant to an independent building authority, the Property Act, or a 

demolition authorized by statute).25 The most frequent method these 

entities used to dispose of buildings was demolition (57 percent), while 

disposal by “other” means (25 percent) and by sale (14 percent) were the 

second and third most frequent methods of disposal (see fig. 6). 

Demolition was one of five methods of building disposal that FRPP 

 25 We were unable to segregate data for buildings disposed of under federal entities’

independent disposal authorities because FRPP does not require federal entities to report 

the authority used to dispose of a particular building asset. And as a result, not all federal 

entities with independent disposal authority track which authority was used to dispose of a 

building or group of buildings.

Entities with Disposal 

Authority Disposed of 

Most Buildings through 

Demolition Rather Than 

through Sale, from Fiscal 

Years 2011 through 2015
Page 18 GAO-17-123 Federal Building Management 

allowed federal entities to report prior to fiscal year 2015; other methods 

included federal transfer, public benefit conveyance, sale, and “other.” 

Beginning in fiscal year 2015, FRPP expanded to 12 the number of 

disposal methods agencies could report such as loss due to disaster, 

abandonment, deterioration, exchange, return to host nation/tribe, or 

reversion to prior owner.

Figure 6: Disposition Methods Reported by 20 Federal Entities and USPS, Fiscal 

Years 2011—2015

Note: Data includes all disposals by the 20 civilian federal entities that reported having statutory 

building disposal authority during the 5 year period, not just those buildings disposed of using their 

own disposal authority. For our analysis of FRPP data, we included the seven new disposal methods 

introduced in the fiscal year 2015 Federal Real Property Profile report in “other” disposals because 

the new data had only been collected for one year.

• Demolition: Landholding agencies may demolish low value buildings 

or buildings where the estimated cost of continued care and handling 

exceeds any projected proceeds that might result from sale.26 For 

example, the Coast Guard reported that 56 percent of its disposals 

were through demolition. Its Shore Divestiture Program directed local 

managers during fiscal years 2011 through 2015 to focus on 

disposing of real property that no longer met mission needs and 

 26 40 U.S.C. § 527: 41 C.F.R §102-75.990
Page 19 GAO-17-123 Federal Building Management 

determining the most appropriate method, including demolition, for 

buildings with no commercial value.

• Other: Building disposals using methods not falling within the 

categories in the FRPP reporting guidance are reported as “other.” 

We asked officials from federal entities we met with to identify the 

actual methods for building disposals that they had reported to FRPP 

as “other.” Generally, agency officials were either unable to identify 

the specific disposal methods for these buildings or only able to 

identify the specific disposal methods for a small portion of these 

building disposals. The expanded number of reporting categories 

added is fiscal year 2015 should reduce the percentage of disposals 

reported as “other” and provide more understanding of the disposal 

methods being used.

• Sale: Federal entities may dispose of buildings through two types of 

sale: (1) a negotiated sale to state or local governments or (2) a public 

sale to a non-government entity. Public sales are competitive and 

generally conducted through a sealed bid or auction. USPS’s disposal 

authority allows it to dispose of buildings through sale without 

considering other forms of disposal as required for most federal 

entities, and all of its disposals were done through sales.27 The small 

fraction of buildings the other 20 entities disposed of by sale suggests 

that many buildings held by these entities may not have been suitable 

for sale. For example, Forest Service officials said that the age, 

location, and condition of many of the buildings they disposed of––

along with the lack of practical or economic value––made demolition 

the preferred disposal method rather than sale.

• Federal Transfer: When buildings become excess to the needs of a 

federal entity’s mission, the building is generally first offered for use by 

another federal entity. If another federal entity identifies a need, the 

property may be transferred to that federal entity.

• Public Benefit Conveyance: Various statutes authorize conveyance of 

surplus federal buildings to state and local governments, and in some 

cases, to nonprofits at up to 100 percent discount for public benefit 

use. These statutes include conveyance for public health, homeless 

assistance, education, parks and recreation, and law enforcement, 

among others.

 27 39 U.S.C. §§ 401(5), and 410(a).
Page 20 GAO-17-123 Federal Building Management 

Five federal entities that reported having authority to retain proceeds from 

buildings disposed of by sale reported gross proceeds of about $557 

million from these sales during the selected 5-year time frame of our 

review. USPS and GSA retained proceeds from all of their building sales 

but GSA’s use of those proceeds was restricted to specific purposes. Of 

these five federal entities, USPS reported the highest aggregate proceeds 

of $446 million and retained proceeds from all 111 of its building 

disposals.28 GSA reported a total of about $89 million in proceeds from its 

68 building sales during the 5-year period. FRPP does not require federal 

entities to report which authority under which they disposed of buildings. 

As a result, the other three agencies could not easily provide information 

on the proceeds retained from disposals using their authority but reported 

about $22 million in proceeds from the 448 building sales over the 5 year 

period.29 (See fig. 7).

Figure 7: Number of Buildings Disposed of by Sale and Aggregate Gross Proceeds 

Reported by Five Entities That Reported Having Authority to Retain Proceeds, 

Fiscal Years 2011—2015 

Figure 7 compares gross proceeds from three federal entities’ building 

disposal sales with those of USPS and GSA during the same time frame 

and shows that, in general, sales of USPS buildings resulted in larger 

gross proceeds than those of the other four federal entities combined.

Accordingly, USPS’s reported aggregate gross proceeds for its 111 

buildings sales was more than four times greater than the aggregate 

 28 USPS reported retaining about $418 million in net proceeds after accounting for 

disposal costs, which include real estate fees, among others.

29 FRPP guidance defines gross proceeds as the sales price, if the building was sold.

Five Federal Entities That 

Reported Having Authority 

to Retain Proceeds 

Reported Gross Proceeds 

from Buildings Disposed of 

by Sale
Page 21 GAO-17-123 Federal Building Management 

gross proceeds reported by the other four federal entities for their 

collective 516 disposals during the same time period.

We found that in some cases FRPP data could not be used to quantify 

proceeds for individual buildings. For 194 building sales in our 5-year time 

frame, the reported gross proceeds field in FRPP was recorded as zero.

However, if a building disposal sale involved a facility comprised of 

multiple buildings, the disposing entity may have been unable to 

disaggregate the facility’s sales price by asset. In such cases, the 

reported gross proceeds of the sale could be assigned to one of the 

buildings while entering the gross proceeds for the others as zero. For 

example, in one instance, the Coast Guard assigned the $185,101 in 

gross proceeds resulting from one disposal transaction that included 2 

housing units and 6 other land and structure assets to one of the housing 

units, while the other housing unit and other assets were assigned zero 

gross proceeds. As a result it is not possible to determine the results of 

buildings disposed of by sale on an asset-by-asset level using FRPP 

data.

The variation among the amount of gross proceeds and the number of 

disposals among the federal entities may generally reflect the type of real 

estate portfolio the federal entity held. For example, among the federal 

entities included in figure 7, the Forest Service, with its portfolio of 

smaller, remotely located buildings, accounted for 55 percent of all 

buildings disposed of by sale but only 2 percent of the proceeds. The 

buildings USPS disposed of, on the other hand, were mostly located in 

urban areas and accounted for 18 percent of buildings sold but 80 

percent of total gross proceeds.

Most statutes that authorize federal entities to retain proceeds from 

building disposals specify the account or fund into which sales proceeds 

must be deposited. The proceeds are generally co-mingled with other 

funds that meet the purpose of the specified account, and each account 

has its own statutory requirements for obligation of the funds. For this 

reason, officials from federal entities were generally unable to report how 

the proceeds they retained from a specific sale were used beyond the 

purpose of the fund or account.
Page 22 GAO-17-123 Federal Building Management 

Officials from the 10 of the 12 federal entities that reported having 

disposal authority that we interviewed said that the decision to keep or 

dispose of a building is largely based on mission needs as determined by 

the entity. In most cases, these federal entities identify buildings for 

disposal before they consider which disposal method is most appropriate 

and which, if any, of its disposal authorities could be used. Federal 

entities we contacted generally did not indicate that having disposal 

authority was factored into their real property decisions, although many 

acknowledged that the authority was a tool that could facilitate disposals. 

Likewise, those federal entities that reported using their authority to retain 

proceeds generally indicated that their authority to do so did not play a 

role in determining which building to dispose. Forest Service officials 

indicated that their disposal decisions might also be influenced by the 

ability to retain and obligate proceeds if they had a building with the 

potential to generate significant sales proceeds.

Ten of the 12 federal entities indicated that disposals are driven by 

mission need. Some of these entities have implemented a formal 

mechanism to identify mission needs. For example, USPS is adjusting the 

size of its building portfolio to meet changing market conditions. As part of 

an effort to optimize its operations, USPS has conducted area mail 

processing reviews and node studies to identify buildings that are excess 

to its needs.30 Similarly, DOE guidance for real property asset 

management emphasizes that real property must be necessary to meet 

program missions, and that real property assets, including buildings, that 

are excess to mission needs should be identified for reuse or disposal.

According to this guidance, plans for real property assets are to be 

documented and kept current by DOE sites in 5-year real property 

planning and budgeting documentation.

Other officials discussed how the disposal decisions may be initiated by 

program or local offices of the federal entity. For example, FAA officials 

stated that program offices identify buildings for disposal based on 

mission need and that some of these decisions are made at the local 

level, though approved through headquarters. Likewise, Forest Service 

officials indicated that disposal decisions about buildings of little or no 

value are sometimes made at the local or district level.

 30 A node study examines all federally owned properties held by USPS within a specific 

geographic radius.

Selected Federal 

Entities Reported 

That Mission Needs 

Drive Building 

Disposal Decisions 

and That Their 

Disposal Authorities 

Did Not Address Their 

Disposal Challenges
Page 23 GAO-17-123 Federal Building Management 

In some cases, a federal entity is not making the disposal decision 

because it is directed in law to dispose of property. For example, in 2013, 

DOE conveyed land and 76 buildings to a non-profit organization in New 

Mexico for research, education and scientific purposes, as provided in the 

Omnibus Public Land Management Act of 2009.31

Officials from 5 of the 12 federal entities we interviewed told us that 

funding to initiate the disposal process would be helpful to address the 

upfront costs of disposal, including those related to maintenance and 

environmental remediation. Officials from these 5 entities said that 

broader authority to retain and use proceeds from disposals may help 

address these disposal costs. When a federal entity other than GSA 

disposes of a building, the proceeds are typically deposited into the U.S. 

Treasury as miscellaneous receipts, unless a specific authority provides 

otherwise.32 As such, although an entity invested financial resources to 

initiate and execute the disposal process, proceeds generated by a 

building sale are generally not available to the entity to recover those 

costs. Those costs may include remediation of environmental issues such 

as lead paint and hazardous waste contamination prior to disposing of a 

building and can be very costly. Other upfront costs can include studies to 

determine historic preservation requirements and improvements to the 

physical conditions of buildings to make them marketable. Many of the 

retention authorities identified by the 15 federal entities do not address 

upfront costs, such as maintenance or other work necessary to put the 

property on the market or to transfer it to another entity. These funds 

generally come from the entity’s operations and maintenance account, 

meaning that preparing a building for disposal competes with ongoing 

program requirements for funding. Officials at one federal entity noted 

that they have delayed the disposal of such buildings if it meant less 

funding for higher priorities. Legislation introduced in the 114th Congress 

could address entities’ concerns about upfront costs. If enacted, the 

Federal Assets Sale and Transfer Act of 2016 would authorize OMB to 

dispose of real property recommended for disposal by a Public Buildings 

Reform Board. As proposed, that act would authorize appropriations, as 

 31 Pub. L. No. 111-11 §13005, 123 Stat. 991, 1449 (2009).

32 GSA deposits proceeds into the Federal Buildings Fund (FBF) which serves as GSA’s 

primary source of funding for operating and capital costs associated with federal space.

Congress exercises control over the FBF through the appropriations process that sets 

annual limits—called obligational authority—on how much can be obligated for various 

activities. 40 U.S.C. § 592. As of September 30, 2015, the balance of the FBF was $7.8 

billion.
Page 24 GAO-17-123 Federal Building Management 

well as proceeds from disposal, subject to appropriations, to be used to 

cover upfront costs related to disposal, among other things.33

Disposal authorities themselves do little to address the other most cited 

disposal challenge, a building’s location, which may limit the interest in 

the property or the ability to dispose of it. As discussed earlier, some 

excess buildings on federal lands must be relocated by the acquiring 

party if the underlying land is not sold. Likewise, landlocked buildings 

inside a federal campus such as a VA medical center draw limited private 

sector interest—in some cases because the land cannot be disposed of 

with the building. Having independent statutory disposal authority does 

not address the challenges faced by federal entities when disposing of 

buildings in landlocked or remote locations, where buyer interest is 

limited.

DOE officials indicated that they would like to have additional authority to 

lease federally-owned buildings under DOE’s control to other parties.34

This authority would provide them with the opportunity to generate 

revenue from facilities that are currently underutilized or unutilized, but 

which they do not consider eligible for disposal because the facilities may 

be needed for mission-related activities in the future. Similarly, VA 

officials indicated that expanding its EUL authority beyond the current 

limitation of supportive housing would provide additional opportunities for 

reuse and repurposing of underutilized and unutilized buildings, though 

this expansion may not result in additional disposals.

We provided copies of the draft report to GSA and USPS for comment 

prior to finalizing the report. In addition we provided copies to the 

Departments of Agriculture, Energy, Health and Human Services, 

Homeland Security, Justice, Labor, State, the Treasury and Veterans 

Affairs; the Environmental Protection Agency; National Science 

Foundation; and Nuclear Regulatory Commission. We received technical 

comments, which we incorporated as appropriate, from GSA, USPS, the 

 33 H.R.4465. As stated earlier, this was passed by the House but has not been enacted.

34 While some federal entities have statutory authority to lease a building or a portion of a 

building to another party and retain the proceeds, this type of authority was outside the 

scope of this review. We do not know how many federal entities have this authority or the 

extent to which it is used and we are not taking a position about the merits of this 

suggestion.

Agency Comments
Page 25 GAO-17-123 Federal Building Management 

Departments of Homeland Security, Labor, State, Transportation, the 

Treasury, and Veterans Affairs.

We are sending copies of this report to the Administrator of General 

Services, and the Secretaries of Agriculture, Energy, Health and Human 

Services, Homeland Security, Justice, Labor, State, the Treasury, and 

Veterans Affairs. We are also sending copies to the Environmental 

Protection Agency, National Science Foundation, and Nuclear Regulatory 

Commission. In addition, the report is available at no charge on GAO’s 

website at http://www.gao.gov.

If you or your staff have any questions about this report, please contact 

me at (202) 512-2834 or wised@gao.gov. Contact points for our Offices 

of Congressional Relations and Public Affairs may be found on the last 

page of this report. GAO staff who made major contributions to this report 

are listed in appendix IV.

David J. Wise

Director, Physical Infrastructure Issues
Page 26 GAO-17-123 Federal Building Management 

List of Requesters

The Honorable Ron Johnson

Chairman

The Honorable Thomas R. Carper

Ranking Member

Committee on Homeland Security and Governmental Affairs

United States Senate

The Honorable James Lankford

Chairman

The Honorable Heidi Heitkamp

Ranking Member

Subcommittee on Regulatory Affairs and Federal Management

Committee on Homeland Security and Governmental Affairs

United States Senate

The Honorable Rob Portman

Chairman

Permanent Subcommittee on Investigations

Committee on Homeland Security and Governmental Affairs

United States Senate
Appendix I: Objectives, Scope, and 

Methodology

Page 27 GAO-17-123 Federal Building Management 

Our objectives were to examine: (1) the scope of disposal authorities held 

by civilian CFO Act agencies and the United States Postal Service 

(USPS); (2) the results of these federal entities’ use of their disposal 

authorities during fiscal years 2011 through 2015; and (3) the factors that 

drive building disposal decisions, and what additional authorities selected 

officials at selected federal entities believe could help facilitate these 

disposals.

To identify those federal entities with disposal authority and determine the 

scope of those authorities—including the authority to retain the proceeds 

from disposals––we surveyed 22 of the 23 civilian CFO Act Agencies, 

asking if they possessed statutory authority to dispose federally owned 

buildings and to retain any proceeds resulting from those disposals.1

Because some disposal authority statutes apply at the CFO Act agency 

level and others apply at a component level, we used 2014 FRPP data to 

identify which components of CFO Act agencies’ owned buildings. In 

total, we identified 59 components of the 22 agencies surveyed that 

owned buildings, and therefore could have disposal authority. The CFO 

Act agencies completed the survey for the components we identified.

For those entities reporting disposal authorities, we asked for the legal 

citations granting these authorities. We then reviewed and analyzed these 

statutory authorities. We also reviewed the Property Act and the

authorities provided to the United States Postal Service. We only 

reviewed authorities reported by surveyed entities. We did not verify if 

additional authorities might exist. We used this analysis to determine 

which federal entities fell within the scope of the review. In addition, we 

also analyzed the content of the authorities reported through the survey to 

identify the scope of the reported authorities and categorize them into 

several broad categories, particularly in terms of any limitations they may 

include regarding disposal and retention of proceeds such as specific 

programs, locations or use of retained proceeds, among others. We also 

interviewed agency officials about the scope and applicability of these 

authorities, and the extent to which they were utilized during the fiscal 

year 2011 through 2015 time frame. We summarized these authorities in 

a detailed summary, which may be found in appendix II.

 1 There are 24 CFO Act agencies in all. With the concurrence of Congressional 

requesters, we excluded DOD at the outset to focus the review on civilian agency building 

disposal. In addition, we did not survey GSA, as a key purpose of the survey was to 

identify building disposal authorities outside of GSA to dispose federally –owned real 

property. We received responses from all 22 agencies that we surveyed.

Appendix I: Objectives, Scope, and 

Methodology
Appendix I: Objectives, Scope, and 

Methodology

Page 28 GAO-17-123 Federal Building Management 

To determine the federal entities’ use of disposal authorities during fiscal 

years 2011 through 2015 and using the same survey instrument, we 

asked entities to report the number of buildings they disposed of during 

the fiscal year 2011 through 2015 time frame using their disposal 

authority. We also asked the federal entities to report if they retained 

proceeds from their building disposals. We also obtained Federal Real 

Property Profile (FRPP) data for fiscal years 2011 through 2015 from the 

General Services Administration (GSA), which collects and maintains the 

data, and reviewed FRPP guidance. For our analysis of FRPP data for 

this engagement, we removed the Department of Defense buildings from 

government-wide building data. In addition, we included only those 

buildings located in the United States, that were reported disposed during 

fiscal years 2011 through 2015. We used these data to determine: the 

total number of building disposals that civilian CFO Act federal entities 

conducted, the types of disposal methods they used, the number for 

which they reported gross proceeds, and the aggregate amount of those 

proceeds. We compared our analysis of the FRPP data with the disposal 

numbers reported by the entities we surveyed and asked the entities to 

reconcile differences between their survey responses and FRPP data 

where they existed. We assessed the reliability of FRPP data by: (1) 

performing electronic testing of data elements; (2) reviewing existing 

information about the data and the system that produced them; and (3) 

interviewing officials knowledgeable about the data. We have identified 

weaknesses in FRPP data in the past specifically related to selected data 

fields which we did not include in the analysis for this review.2 In 

instances where data errors were reported by a federal entity, we noted 

the errors, made corrections, and performed our data analysis once 

again. The differences in the results of the analysis were not significant 

enough to change the outcome of the analysis. We found that the data 

were generally reliable for our purposes, which were to identify the 

number of buildings disposed of by those entities with independent 

disposal authority, and the extent to which the disposing federal entities 

retained proceeds from disposal activities.

To identify the factors which drive building disposals, and identify what 

additional authority officials believed could help facilitate disposals, we 

interviewed officials from 11 federal entities with the authority to both 

dispose of buildings and retain proceeds from such disposals. We also 

interviewed officials at one federal entity with the authority to dispose of 

 2 GAO-16-275.
Appendix I: Objectives, Scope, and 

Methodology

Page 29 GAO-17-123 Federal Building Management 

buildings but without the authority to retain proceeds, and one federal 

entity with neither authority. We asked these federal entities how they 

prioritized building disposals and how their disposal authority may have 

influenced their priorities. We also discussed the scope and use of their 

authorities for building disposals during fiscal years 2011 through 2015 

and reviewed entities’ disposal guidance.

We obtained more detailed information from four of the seven federal 

entities that used their disposal authority during fiscal years 2011 through 

2015. We selected three to five disposals from each federal entity based 

on building value, size, location and year of sale. We used this 

information to characterize the agencies’ disposal priorities and 

processes, gather information on proceeds retained from disposals, 

identify challenges to conducting building disposals, and to provide 

illustrative examples for this report. The information from these specific 

disposals is not generalizable to all building disposals.

We conducted this performance audit from January 2016 to December 

2016 in accordance with generally accepted government auditing 

standards. Those standards require that we plan and perform the audit to 

obtain sufficient, appropriate evidence to provide a reasonable basis for 

our findings and conclusions based on our audit objectives. We believe 

that the evidence obtained provides a reasonable basis for our findings 

and conclusions based on our audit objectives.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 30 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

Department of Agriculture,

U.S. Forest Service

16 U.S.C. § 580d note

Disposal

Retention of Proceeds

The Secretary may convey by sale, lease, exchange, a 

combination of sale and exchange, or by such other means as 

the Secretary considers appropriate an administrative site, or an 

interest in an administrative site, that is under the jurisdiction of 

the Secretary. The authority of the Secretary to initiate the 

conveyance of an administrative site expires on September 30, 

2016.

Proceeds from the conveyance of an administrative site shall be 

available to the Secretary, until expended and without further 

appropriation, to pay any necessary and incidental costs 

incurred by the Secretary in connection with the acquisition, 

improvement, maintenance, reconstruction, or construction of a 

facility or improvement for the National Forest System, and for 

the conveyance of administrative sites, including to pay 

reasonable commissions or fees for brokerage services obtained 

in connection with the conveyance if the Secretary determines 

the conveyances are in the public interest.

Department of Energy 42 U.S.C. § 2201(g)

Disposal 

The Department of Energy is authorized to acquire, purchase, 

lease, and hold real and personal property and to sell, lease, 

grant, and dispose of such real and personal property as 

provided in the Atomic Energy Act of 1954, as amended. 

42 U.S.C. § 2342

Disposal 

To facilitate the establishment of local self-government at the 

communities of Oak Ridge, Tennessee, and Richland, 

Washington, and to provide for the disposal of federally owned 

properties of such communities the Commission shall offer for 

disposal all real property within the community which is presently 

under lease or license agreement with the Commission or its 

community management contractor for residential, commercial 

or industrial, agricultural, church or other nonprofit use, or which, 

in the opinion of the Commission, is appropriate for such use.

The Commission may, but shall not be required to, dispose of 

any other real property at the community, whether within or 

outside of that community.

16 U.S.C. § 832a(e)

Disposal 

The Bonneville Power Administrator is authorized to sell, lease, 

or otherwise dispose of such real property and interests in land 

acquired in connection with construction or operation of electric 

transmission lines or substations as in the Administrator’s 

judgement are not required for the purposes of the Bonneville 

Project Act; provided, however, that before the sale, lease or 

disposition of real property the administrator shall secure the 

approval of the President of the United States.

16 U.S.C. § 838i(a)

Retention of Proceeds 

The Bonneville Power Administrator may make expenditures 

from the Bonneville Power Administration fund without further 

appropriation and without fiscal year limitation, but within such 

specific directives or limitations as may be included in 

appropriations acts, for any purpose necessary or appropriate to 

carry out the duties imposed on the Administrator pursuant to 

law.

Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported 

by 22 Federal Entities
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 31 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

Department of Health and 

Human Services,

Indian Health Service

25 U.S.C. § 5324(f)

Disposal 

In connection with any self-determination contract or grant, the 

appropriate Secretary may donate to an Indian tribe or tribal 

organization title to any personal or real property found to be 

excess to the needs of the Bureau of Indian Affairs, the Indian 

Health Service, or GSA. The appropriate Secretary may also 

acquire excess or surplus Government personal or real property 

for donation to an Indian tribe or tribal organization if the 

Secretary determines the property is appropriate for use for a 

purpose for which a self-determination contract or grant 

agreement is authorized under the Indian Self Determination and 

Educational Assistance Act, as amended.

25 U.S.C. § 5392(c)

Disposal 

In connection with any compact or funding agreement executed 

pursuant to the authorities of the Indian Health Service, or an 

agreement negotiated under the Tribal Self-Governance 

Demonstration Project, the Secretary, upon the request of an 

Indian tribe, may donate to an Indian tribe title to any personal or 

real property found to be excess to the needs of any agency of 

the Department, or GSA. The Secretary shall acquire excess or 

surplus Government personal or real property for donation to an 

Indian tribe or tribal organization if the Secretary determines the 

property is appropriate for use by the Indian tribe for any 

purpose for which a compact of funding agreement is 

authorized.

25 U.S.C. § 1660g(b)

Disposal 

The Secretary may donate to an urban Indian organization that 

has entered into a contract or received a grant under the Health 

Services for Urban Indians programs any personal or real 

property determined to be excess to the needs of the Indian 

Health Service or GSA for the purposes of carrying out the 

contract or grant.

Department of Homeland 

Security,

Federal Emergency 

Management Agency

15 U.S.C. § 2218(b)(3)

Disposal 

The Administrator of FEMA is authorized to sell, convey, 

mortgage, pledge, lease, exchange, or otherwise dispose of 

property and assets.

Department of Homeland 

Security,

Immigration and Customs 

Enforcement

Pub. L. No. 114-4 § 544

Disposal 

If the Secretary of Homeland Security determines that specific 

United States Immigration and Customs Enforcement (ICE) 

Service Processing Centers or other ICE-owned detention 

facilities no longer meet the mission need, the Secretary is 

authorized to dispose of them by directing the GSA 

Administrator to sell all real and related personal property.

Retention of Proceeds The proceeds from disposing of United States Immigration and 

Customs Enforcement (ICE) Service Processing Centers or 

other detention facilities, net of the costs of sale incurred by GSA 

and ICE shall be deposited as offsetting collections into a 

separate account that shall be available, subject to 

appropriation, until expended for other real property capital asset 

needs of existing ICE assets.

Department of Homeland 

Security,

14 U.S.C. § 670

Disposal 

The Secretary is authorized to dispose of by sale, lease, or 

otherwise, any real property or interest therein used for Coast 

Guard family housing units for adequate consideration.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 32 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

U.S. Coast Guard 14 U.S.C. § 681

Disposal 

The Secretary of the Department of Homeland Security may not 

carry out activities related to the dismantling or disposal of 

infrastructure comprising the LORAN-C system until the date on 

which the Secretary provides to relevant congressional 

committees notice of a determination by the Secretary that such 

infrastructure is not required to provide a positioning, navigation 

and timing system to provide redundant capability in the event 

the Global Positioning System signals are disrupted.

On any date after the above notification is made, the GSA 

Administrator, acting on behalf of the Secretary, may sell any 

real and personal property under the administrative control of the 

Coast Guard and used for the LORAN-C system, subject to such 

terms and conditions that the Secretary believes to be necessary 

to protect government interests and program requirements of the 

Coast Guard.

Retention of Proceeds The proceeds of the sale of any real and personal property 

under the administrative control of the Coast Guard and used for 

the LORAN-C system, less the costs of sale incurred by GSA 

shall be deposited as offsetting collections into the Coast Guard 

“Environmental Compliance and Restoration” account and, 

without further appropriation, shall be available until expended 

for environmental compliance and restoration purposes 

associated with the LORAN-C system; the costs of securing and 

maintaining equipment that may be used as a backup to the 

Global Positioning System or to meet any other federal 

navigation requirement, the demolition of improvements on such 

real property; and the costs associated with the sale of such real 

and personal property.

14 U.S.C. § 685

Disposal

The Secretary may convey, at fair market value, real property, 

owned or under the administrative control of the Coast Guard for 

the purpose of using the proceeds from such conveyance to 

acquire and construct military family housing and military 

unaccompanied military housing.

14 U.S.C. § 685

Retention of Proceeds

The Secretary shall deposit the proceeds from the sale in the 

Coast Guard Housing Fund established under 14 U.S.C. § 687 

for the purpose of expending such proceeds to acquire and 

construct military family housing and military unaccompanied 

military housing and may use amounts as provided in 

appropriations acts. Amounts made available from the fund 

remain available until expended. 
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 33 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

Department of Justice,

Federal Bureau of Investigation

Pub. L. No. 102-395, § 102(b)(1), 

as amended by Pub. L. No. 104-

132, § 815(d)

Disposal

Retention of Proceeds

With respect to any undercover investigative operation of the 

Federal Bureau of Investigation or the Drug Enforcement 

Administration which is necessary for the detection and 

prosecution of crimes against the United States or for the 

collection of foreign intelligence or counterintelligence, sums 

authorized to be appropriated for the Federal Bureau of 

Investigation and for the Drug Enforcement Administration, and 

the proceeds from such undercover operation, may be deposited 

in banks or other financial institutions.

Proceeds from such undercover operation may be used to offset 

necessary and reasonable expenses incurred in such operation. 

As soon as the proceeds from an undercover investigative 

operation are no longer necessary for the conduct of such 

operation, such proceeds or the balance of such proceeds 

remaining at the time shall be deposited in the Treasury of the 

United States as miscellaneous receipts.

Department of Justice,

Federal Prison Industries

18 U.S.C. § 4126

Retention of Proceeds

All moneys under control of Federal Prison Industries, or 

received from the sale of the products or byproducts of such 

Industries, or for the services of federal prisoners, shall be 

deposited or covered into the Treasury of the United States to 

the credit of the Prison Industries Fund and withdrawn therefrom 

only pursuant to accountable warrants or certificates of 

settlement issued by the Government Accountability Office. 

Federal Prison Industries is authorized to employ the fund, and 

any earnings that may accrue to the corporation for, among 

other things, the lease, purchase, other acquisition, repair, 

alteration, erection, and maintenance of industrial buildings and 

equipment.

Department of Labor 29 U.S.C. § 568

Disposal

Retention of Proceeds

The Secretary of Labor is authorized to accept, in the name of 

the Department of Labor, and employ or dispose of in 

furtherance of authorized activities of the Department of Labor 

any money or property, real, personal, or mixed, tangible or 

intangible, received by gift, devise, bequest, or otherwise.

29 U.S.C. § 3208(g)

Retention of Proceeds

Notwithstanding any other provision of law, if the GSA sells a 

Job Corps center facility, the Administrator shall transfer the 

proceeds from the sale to the Secretary, who shall use the 

proceeds to carry out the Job Corps program.

29 U.S.C. § 3249(b)

Disposal

Retention of Proceeds

For purposes of Workforce Innovation and Opportunity, the 

Secretary is authorized to dispose of any money or property, 

real, personal, or mixed tangible or intangible, received by gift, 

devise, bequest, or otherwise.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 34 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

Department of State 22 U.S.C. § 300

Disposal

Retention of Proceeds

The Secretary of State is authorized to sell, exchange, lease or 

license any property or property interest for use of diplomatic 

and consular establishments in foreign countries or in the United 

States.

Proceeds derived from dispositions from the sale, exchange, 

lease, or license of any property for use of diplomatic and 

consular establishments in foreign countries or in the United 

shall be applied toward acquisition, construction, or other 

purposes authorized by the Foreign Buildings Service Act of 

1926, as amended, or held in the Foreign Service Buildings 

Fund, as in the judgment of the Secretary may best serve the 

Government’s interest.

22 U.S.C. § 2697

Disposal

Retention of Proceeds

The Secretary of State shall hold any real property made 

unconditionally by will or otherwise and shall either use such 

property for the operation of the Department of State and the 

performance of its functions, except that any such property not 

required for these purposes may be liquidated by the Secretary 

of State whenever in the judgment of the Secretary of State the 

purposes of the gift will be served thereby.

The net proceeds from the liquidation of gifts of intangible 

personal property, or personal or real property not required for 

the operation of the Department of State and the proceeds of 

insurance on any gift property which are not used for its 

restoration, shall be deposited into the Treasury of the United 

States. Such funds are hereby appropriated and shall be held in 

trust by the Secretary of the Treasury for the benefit of the 

Department of State. Such funds and the income from such 

investments shall be available for expenditure in the operation of 

the Department of State and the performance of its functions.

22 U.S.C. § 4303

Disposal

Based on his or her determination, the Secretary shall dispose of 

property acquired in carrying out the purposes of the Department 

of State.

22 U.S.C. §§ 4304(b) (5) and (f)

Retention of Proceeds

The Secretary of State may transfer funds made available under 

the heading “Acquisition and Maintenance of Buildings Abroad” 

(including funds held in the Foreign Service Building Fund) to the 

Working Capital Fund for the purpose of in-kind exchanges of 

property between the Government of the United Sates and the 

government of a foreign country for, or in connection with, 

diplomatic or consular establishments. If property acquired for 

purposes of exchange with a foreign government is instead sold, 

proceeds are available only as provided in advance in an 

appropriation act.

[The Working Capital Fund shall be available without fiscal year 

limitation for, among other things, the purposes of 22 U.S.C. §§ 

4301 et seq. (See 22 U.S. § 2684).]

Department of Transportation,

Federal Aviation Administration

49 U.S.C. § 40110(a)(3)

Disposal

Retention of Proceeds

The Administrator of the Federal Aviation Administration may 

dispose of any interest in property for adequate compensation, 

and the amount so received shall be credited to the 

appropriation current when the amount is received; be merged 

with and available for the purposes of such appropriation; and 

remain available until expended.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 35 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

49 U.S.C. § 40110(c)(4)

Disposal

The Administrator may construct and improve laboratories and 

other test facilities and dispose of those that are airport and 

airway property or technical equipment used for the special 

purposes of the Administration. 

49 U.S.C. § 45303(c)

Retention of Proceeds

All fees and amounts collected by the Administration, with limited 

exceptions, shall be credited to a separate account established 

in the Treasury and made available for Administration activities. 

The amounts shall be available immediately for expenditure but 

only for congressionally authorized and intended purposes, and 

shall remain available until expended.

Department of Transportation,

Federal Railroad Administration

45 U.S.C. § 823(h)(2)

Disposal

The Secretary may complete, recondition, reconstruct, renovate, 

repair, maintain, operate, charter, rent, sell, or otherwise dispose 

of any property or other interests obtained if the recipient of a 

loan or loan guarantee under the Railroad Rehabilitation and 

Improvement Financing program does not meet the terms of the 

loan or loan guarantee. 

Department of Transportation,

Maritime Administration

46 U.S.C. § 50304(a)

Disposal

The Secretary of Transportation may sell property (other than 

vessels transferred under section 4 of the Merchant Marine Act, 

1920) on terms the Secretary considers appropriate. 

49 U.S.C. § 109 (h)(1)a

Retention of Proceeds

In the same manner that a private corporation may make a 

contract within the scope of its authority under its charter, the 

Secretary may make contracts and cooperative agreements for 

the United States Government and disburse amounts to carry 

out the Secretary’s duties and powers under this section, for 

purposes of the Merchant Marine, and all other Maritime 

Administration programs, and to protect, preserve and improve 

collateral held by the Secretary to secure indebtedness. Only 

those amounts specifically authorized by law may be 

appropriated for the use of the Maritime Administration, with the 

use of such proceeds subject to further appropriation by 

Congress.

Department of Transportation,

St. Lawrence Seaway 

Development Corporation

33 U.S.C. § 984(a)b

Disposal

Retention of Proceeds

For the purpose of carrying out the functions of the Saint 

Lawrence Seaway Development Corporation, the Corporation 

may acquire, by purchase, lease, condemnation, or donation 

such real and personal property and any interest therein, and 

may sell, lease, or otherwise dispose of such real and personal 

property, as the Administrator deems necessary for the conduct 

of its business.

For the purpose of carrying out the functions of the Saint 

Lawrence Seaway Development Corporation, the Corporation 

shall determine the character of and the necessity for its 

obligations and expenditures, and the manner in which they shall 

be incurred, allowed and paid, subject to provisions of law 

specifically applicable to Government corporations.

Department of the Treasury,

Comptroller of the Currency

12 U.S.C. § 5416

Disposal

The Office of the Comptroller of the Currency may acquire real 

property (or property interests) to carry out the duties and 

responsibilities of the office and hold, maintain, sell, lease or 

otherwise dispose of this property (or property interest).
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 36 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

12 U.S.C. § 482c

Retention of Proceeds

The Comptroller of the Currency may impose and collect 

assessments, fees, or other charges as necessary or 

appropriate to carry out the responsibilities of the office of the 

Comptroller. Such assessments, fees, and other charges shall 

be set to meet the Comptroller’s expenses in carrying out 

authorized activities.

Department of Veterans Affairs 38 U.S.C. § 2032(g)

Disposal

Retention of Proceeds

The Secretary may dispose of any property acquired for the 

purpose of this section, which is the operation of residences and 

facilities as therapeutic housing in connection with the 

compensated work therapy programs. The proceeds of any such 

disposal shall be credited to the General Post Fund, which is a 

trust fund authorized by 31 U.S.C. § 1321(a)(45). 

Funds received by the Department under this section shall be 

deposited in the General Post Fund. The Secretary may 

distribute out of the fund such amounts as necessary for the 

acquisition, management, maintenance, and disposition of real 

property for the purpose of carrying out such program. The 

Secretary shall manage the operation of this section so as to 

ensure that expenditures under this subsection for any fiscal 

year shall not exceed by more than $500,000 proceeds credited 

to the General Post Fund under this section. The operation of 

the program and funds received shall be separately accounted 

for, and shall be stated in the documents accompanying the 

President’s budget for each fiscal year.

38 U.S.C. § 8118

Disposal

Retention of Proceeds

The Secretary is authorized to transfer real property under the 

jurisdiction or control of the Department of Veterans Affairs to 

another department or agency of the United States, to a state or 

political subdivision of a state, or to any public or private, 

including an Indian Tribe. The property must be transferred at 

fair market value, unless it is transferred to a homeless provider. 

Property under VA’s authority cannot be disposed of until the 

Secretary determines that the property is no longer needed by 

the Department in carrying out its functions and is not suitable 

for use for the provision of services to homeless veterans by the 

Department under the McKinney-Vento Act or by another entity 

under VA’s Enhanced-Use Lease authority. This authority 

expires on December 31, 2018.

Proceeds from the transfer of real property are deposited in the 

Department of Veterans Affairs Capital Asset Fund and, to the 

extend provided in advance in appropriations acts, may be used 

for property transfer costs, including demolition, environmental 

remediation, maintenance and repair, improvements to facilitate 

the transfer, and administrative expenses; costs associated with 

future transfers of property under this authority; costs associated 

with enhancing medical care services to veterans by improving, 

renovating, replacing, updating, or establishing patient care 

facilities through minor construction projects; costs associated 

with the transfer, lease, or adaptive use of a structure or other 

property under the jurisdiction of the Secretary that is listed on 

the National Register of Historic Places.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 37 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

38 U.S.C. § 8122(a)(3)

Disposal

The Secretary may transfer to a State for use as the site of a 

State nursing-home or domiciliary facility real property which the 

Secretary determines to be excess to the needs of the 

Department.

38 U.S.C. § 8164

Disposal

If, during the term of an enhanced-use lease or within 30 days 

after the end of the term of the lease, the Secretary determines 

that the leased property is no longer needed by the Department, 

the Secretary may initiate action for the transfer to the lessee of 

all right, title, and interest of the United States in the property. A 

disposition of property may not be made under this section 

unless the Secretary determines that the disposition under this 

section rather than under sections 8118 or 8122 of title 38 is in 

the best interests of the Department.

A disposition under this section may be made in return for cash 

at fair value as the Secretary determines is in the best interest of 

the United States and upon such other terms and conditions as 

the Secretary considers appropriate.

Environmental Protection 

Agency

42 U.S.C. §9604(j)

Disposal

The President is authorized to acquire, by purchase, lease, 

condemnation, donation, or otherwise, any real property or any 

interest in real property that the President in his discretion 

determines is needed to conduct a remedial action under the 

Comprehensive Environmental Response, Compensation, and 

Liability Act of 1980, as amended. The President may use the 

authority for a remedial action only if, before an interest in real 

estate is acquired under this subsection, the State in which the 

interest to be acquired is located assures the President, through 

a contract or cooperative agreement or otherwise, that the State 

will accept transfer of the interest following completion of the 

remedial action.

General Services Administration 40 U.S.C. § 543

Disposal

The GSA Administrator is authorized to dispose of surplus real 

property by sale, exchange, lease, permit, or transfer for cash, 

credit, or other property.

Pub. L. No. 108-447, title IV, § 

412

Disposal

Retention of Proceeds

The GSA Administrator, notwithstanding any other provision of 

law, is authorized by sale, lease, exchange, or otherwise, real 

and related personal property, or interests therein.

Net proceeds from the disposition of real property are deposited 

in the Federal Buildings Fund and are used for GSA real 

property capital needs to the extent provided in appropriations 

act. 

National Science Foundation 42 U.S.C. § 1870(e)

Disposal

The National Science Foundation shall have the authority to hold 

and dispose of by grant, sale, lease, or loan, real and personal 

property of all kinds necessary for, or resulting from, the exercise 

of authority granted by the National Science Foundation Act of 

1950, as amended.

Nuclear Regulatory Commission 42 U.S.C. § 2201(g)

Disposal

The Nuclear Regulatory Commission is authorized to acquire, 

purchase, lease, and hold real and personal property, including 

patents, as agent of and on behalf of the United States, and to 

sell, lease, grant, and dispose of such real and personal property 

as provided in the Atomic Energy Act of 1954, as amended.
Appendix II: Disposal Authorities and 

Retention of Proceeds Authorities Reported by 

22 Federal Entities

Page 38 GAO-17-123 Federal Building Management 

Federal entity Statute and type of authority Summary of authority

United States Postal Service 39 U.S.C. § 401(5)

Disposal

The United States Postal Service is authorized to acquire 

personal or real property and to hold, maintain, sell, lease, or 

otherwise dispose of such property. 

39 U.S.C. §§ 2003 and 2401

Retention of Proceeds

Proceeds are deposited in the Postal Service Fund and remain 

available to the United States Postal Service without fiscal year 

limitation to carry out the purposes, functions, and powers 

authorized by title 39 of the U.S. Code. All revenues received by 

the United States Postal Service are appropriated to the United 

States Postal Service.

Source: GAO analysis of statutory authorities reported by 22 federal entities. | GAO-17-123

a

See also Comp. Gen. decision B-141543, Jan. 5, 1960; 49 U.S.C § 109; 40 U.S.C. § 113(e)(5); and 

former 46 U.S.C. App. 1116 (Section 206 of Merchant Marine Act of 1936), which was omitted when 

title 46 was re-codified but is still in law because the recodification was not intended to change the 

law.

b

See also Comp. Gen. decision B-34706, Dec. 5, 1947, and B-193573, Dec. 19, 1979.

c

See also 12 U.S.C. §§ 192 and 481, and Comp. Gen. decision B-324857, Aug. 6, 2015.
Appendix III: Enacting Legislation for Disposal 

Authorities and Retention of Proceeds 

Authorities of Federal Entities

Page 39 GAO-17-123 Federal Building Management 

Federal entity Statutory authority Enacting and amending legislation

Department of Agriculture,

U.S. Forest Service

16 U.S.C. § 580d note Pub. L. No.109-54, 119 Stat. 560 (Aug. 2, 2005) – Authorized 

the Secretary to convey administrative sites with certain 

limiting terms and conditions on conveyances.

Pub. L. No. 109-54, 119 Stat. 563 (Aug. 2, 2005) – Authorized 

the Secretary to deposit and use funds from the conveyance of 

administrative sites for specified activities.

Pub. L. No. 111-8, 123 Stat. 748 (Mar. 11, 2009) – Duration of 

Secretary’s authority changed from Sept. 20, 2008 to Sept. 30, 

2011.

Pub. L. No. 112-74, 125 Stat. 1045 (Dec. 23, 2011) – Duration 

of Secretary’s authority changed from Sept. 30, 2011 to Sept. 

30, 2016.

Department of Energy 42 U.S.C. § 2201(g) Pub. L. No. 83-703, 68 Stat. 949 (Aug. 30, 1954).

42 U.S.C. § 2342 Pub. L. No. 84-221, 69 Stat. 476 (Aug. 4, 1955).

16 U.S.C. § 832a(e) Pub. L. No. 75-329, 50 Stat. 733 (Aug. 20, 1937).

16 U.S.C. § 838i(a) Pub. L. No. 93-454, 88 Stat. 1378 (Oct. 18, 1974).

Department of Health and Human 

Services,

Indian Health Service

25 U.S.C. § 5324(f) Pub. L. No. 100-472, 102 Stat. 2292 (Oct. 5, 1988) –

Authorized the Secretary to (1) permit an Indian tribe to use 

existing school buildings, hospitals, and other facilities, and 

personal property thereon; (2) donate to an Indian tribe the title 

to any excess personal property of the Bureau of Indian 

Affairs, Indian Health Service, or General Services 

Administration; and (3) acquire excess government personal 

property for donation to an Indian tribe.

Pub. L. No. 101-644, 104 Stat. 4666 (Oct. 25, 1994) –

Authorized the Secretary to donate real property to an Indian 

tribe and acquire excess government real property for donation 

to an Indian tribe.

Pub. L. No. 103-413, 108 Stat. 4254 (Oct. 25, 1994) – Placed 

certain limitations on the Secretary’s authority to donate 

excess personal and real property to Indian tribes.

25 U.S.C. § 5392(c) Pub. L. No. 106-260, 114 Stat. 726 (Aug. 18, 2000).

25 U.S.C. § 1660g(b) Pub. L. No. 111-148, 124 Stat. 935 (Mar. 23, 2010).

Department of Homeland Security,

Federal Emergency Management 

Agency

15 U.S.C. § 2218(b)(3) Pub. L. No. 93-498, 88 Stat. 1548 (Oct. 29, 1974).

Department of Homeland Security,

Immigration and Customs 

Enforcement

Pub. L. No. 114-4, § 544 Pub. L. No. 114-4, 129 Stat. 69 (Mar. 4, 2015).

Department of Homeland Security,

U.S. Coast Guard

14 U.S.C. § 670 Pub. L. No. 103-206, 107 Stat. 2423 (Dec. 20, 1993).

14 U.S.C. § 681 Pub. L. No. 114-120, 130 Stat. 83 (Feb. 8, 2016).

Appendix III: Enacting Legislation for 

Disposal Authorities and Retention of 

Proceeds Authorities of Federal Entities
Appendix III: Enacting Legislation for Disposal 

Authorities and Retention of Proceeds 

Authorities of Federal Entities

Page 40 GAO-17-123 Federal Building Management 

Federal entity Statutory authority Enacting and amending legislation

14 U.S.C. § 685 Pub. L. No. 104-324, 110 Stat. 3911 (Oct. 19, 1996) –

Authorized the Secretary to convey or lease property or 

facilities to private persons with proceeds used to carry out 

activities under the chapter.

Pub. L. No. 11-281, 124 Stat. 2919 (Oct. 15, 2010) –

Authorized the Secretary to convey, at fair market value, real 

property of the Coast Guard with proceeds going toward 

acquiring and constructing military housing.

14 U.S.C. § 687 Pub. L. No. 104-324, 110 Stat. 3912 (Oct. 19, 1996) –

Established the Coast Guard Housing Fund and authorized it 

to include proceeds from the conveyance or lease of property 

or facilities under section 685. Authorized the Secretary to use 

the funds for military housing.

Pub. L. No. 111-281, 124 Stat. 2920 (Oct. 15, 2010) – Limited 

authority of Coast Guard Housing Fund to include proceeds 

from conveyances of property, not proceeds from leases of 

property, nor proceeds from conveyances or leases of 

facilities.

Department of Justice,

Federal Bureau of Investigation

Pub. L. No. 102-395, § 102(b)(1) Pub. L. No. 95-624, 92 Stat. 3465 (Nov. 9, 1978) – Authorized 

the Federal Bureau of Investigation to use appropriated funds 

for leasing space within the United States, District of Columbia, 

and territories of the United States, when necessary for the 

detection and prosecution of crimes against the United States, 

or for the collection of foreign intelligence or 

counterintelligence. Authorized the Federal Bureau of 

Investigation to use or deposit the proceeds from such 

undercover operations.

Pub. L. No. 102-395, 106 Stat. 1838 (Oct. 6, 1992) –

Authorized the Federal Bureau of Investigation or Drug 

Enforcement Administration, during fiscal years 1993, 1994, 

and 1995, to use appropriated funds for purchasing property, 

buildings, and other facilities, and for leasing space within the 

United States, District of Columbia, and territories of the United 

States, when necessary to detect and prosecute crimes 

against the United States, or for the collection of foreign 

intelligence or counterintelligence. Authorized the Federal 

Bureau of Investigation and Drug Enforcement Administration, 

during fiscal years 1993, 1994, and 1995, to use or deposit 

proceeds from undercover operations.

Pub. L. No. 104-132, 110 Stat. 1315 (Apr. 24, 1996) –

Continued Pub. L. No. 102-395 § 102(b) until specifically 

repealed.

Department of Justice,

Federal Prison Industries

18 U.S.C. § 4126 Pub. L. No. 80-772, 62 Stat. 852 (June 25, 1948).
Appendix III: Enacting Legislation for Disposal 

Authorities and Retention of Proceeds 

Authorities of Federal Entities

Page 41 GAO-17-123 Federal Building Management 

Federal entity Statutory authority Enacting and amending legislation

Department of Labor 29 U.S.C. § 568 Pub. L. No. 102-394, 106 Stat. 1799 (Oct. 6, 1992) –

Authorized the Secretary of Labor to accept, employ, or 

dispose of money, real property, or personal property received 

by gift, devise, bequest, or otherwise.

Pub. L. 103-333, 108 Stat. 2548 (Sept. 30, 1994) – Continued 

the Secretary of Labor’s authority to fiscal year ending Sept. 

30, 1995 and each fiscal year thereafter.

29 U.S.C. § 3208(g) Pub. L. No. 113-128, 128 Stat. 1554 (July 22, 2014).

29 U.S.C. § 3249(b) Pub. L. No. 113-128, 128 Stat. 1599 (July 22, 2014).

Department of State 22 U.S.C. § 300 Pub. L. No. 79-33, 59 Stat. 53 (Apr. 19, 1945).

22 U.S.C. § 2697 Pub. L. No. 96-465, 94 Stat. 2153 (Oct. 17, 1980).

22 U.S.C. § 4303 Pub. L. No. 101-246, 104 Stat. 24 (Feb. 16, 1990).

22 U.S.C. §§ 4304(b) (5) and (f) Pub. L. No. 101-246, 104 Stat. 24 (Feb. 16, 1990).

Department of Transportation,

Federal Aviation Administration

49 U.S.C. § 40110(a)(3) Pub. L. No. 85-726, 72 Stat. 748 (Aug. 23, 1958).

49 U.S.C. § 40110(c)(4) Pub. L. No. 112-95, 126 Stat. 39, 44 (Feb. 14, 2012).

49 U.S.C. § 45303(c) Pub. L. No. 104-264, 110 Stat. 3247 (Oct. 9, 1996).

Department of Transportation,

Federal Railroad Administration

45 U.S.C. § 823(h)(2) Pub. L. No. 105-178, 112 Stat. 476 (June 9, 1998).

Department of Transportation,

Maritime Administration

46 U.S.C. § 50304(a) Pub. L. No. 109-304, 120 Stat. 1565 (Oct. 6, 2006).

49 U.S.C. § 109(h)(1) Pub. L. No. 74-835, 49 Stat. 1987-88 (June 29, 1936).

Department of Transportation,

St. Lawrence Seaway 

Development Corporation

33 U.S.C. § 984(a) Pub. L. No. 83-358, 68 Stat. 94 (May 13, 1954).

Department of the Treasury,

Comptroller of the Currency

12 U.S.C. § 5416 Pub. L. No. 111-203, 124 Stat. 1528 (July 21, 2010).

12 U.S.C. § 482 Pub. L. No. 102-242, 105 Stat. 2248 (Dec. 19, 1991).

Department of Veterans Affairs 38 U.S.C. § 2032(g) Pub. L. No. 105-114, 111 Stat. 2286 (Nov. 21, 1977).

Pub. L. No. 107-95, 115 Stat. 918 (Dec. 21, 2001) --

Redesignated the section number of this authority within title 

38 of the U.S. Code.

38 U.S.C. § 8118 Pub. L. No. 108-422, 118 Stat. 2388 (Nov. 30, 2004).

38 U.S.C. § 8122(a)(3) Pub. L. No. 100-687, 102 Stat. 4135 (Nov. 18, 1988).
Appendix III: Enacting Legislation for Disposal 

Authorities and Retention of Proceeds 

Authorities of Federal Entities

Page 42 GAO-17-123 Federal Building Management 

Federal entity Statutory authority Enacting and amending legislation

38 U.S.C. § 8164 Pub. L. No. 102-86, 105 Stat. 420 (Aug. 14, 1991) –

Authorized the Secretary to determine that leased property is 

no longer needed by the department and initiate action for the 

transfer to the lessee of the property by requesting the 

Administrator of the General Services Administration to 

dispose of the property.

Pub. L. No. 108-422, 118 Stat. 2390 (Oct. 30, 2004) –

Authorized the Secretary to dispose of property under this 

section, rather than section 8818 or 8122 of title 38, only if the 

Secretary determines that the disposition is in the best 

interests of the Department.

Pub. L. No. 112-154, 126 Stat. 1181 (Aug. 6, 2012) –

Authorized the Secretary to dispose of property in return for 

cash at fair value as he determines is in the best interest of the 

United States and upon such terms and conditions as the 

Secretary deems appropriate.

Environmental Protection Agency 42 U.S.C. §9604(j) Pub. L. No. 99-499, 100 Stat. 1624 (Oct. 17, 1986).

General Services Administration 40 U.S.C. § 543 Pub. L. No. 81-152, 63 Stat. 385 (June 30, 1949).

Pub. L. No. 108-447, title IV, § 

412

Pub. L. No. 108-447, 118 Stat. 3259 (Dec. 8, 2004).

National Science Foundation 42 U.S.C. § 1870(e) Pub. L. No. 81-507, 64 Stat. 153 (May 10, 1950).

Nuclear Regulatory Commission 42 U.S.C. § 2201(g) Pub. L. No. 83-703, 68 Stat. 949 (Aug. 30, 1954).

United States Postal Service 39 U.S.C. § 401(5) Pub. L. No. 91-375, 84 Stat. 723 (Aug. 12, 1970). 

39 U.S.C. § 2003 Pub. L. No. 91-375, 84 Stat. 739 (Aug. 12, 1970).

39 U.S.C. § 2401 Pub. L. No. 91-375, 84 Stat. 743 (Aug. 12, 1970).

Source: GAO analysis of statutory authorities reported by 22 federal entities. | GAO-17-123
Appendix IV: GAO Contact and Staff 

Acknowledgments

Page 43 GAO-17-123 Federal Building Management 

David J. Wise, (202) 512-2834 or wised@gao.gov

In addition to the individual named above, Maria Edelstein (Assistant 

Director), Christopher Jones (Analyst in Charge), Lindsay Bach, Russ 

Burnett, Jack Granberg, Delwen Jones, Hannah Laufe, Malika Rice, 

Minette Richardson, and Janani Shankaran made key contributions to this 

report.

Appendix IV: GAO Contact and Staff 

Acknowledgments

GAO Contact

Staff 

Acknowledgments
Related GAO Products

Page 44 GAO-17-123 Federal Building Management 

Federal Real Property: Efforts Made, but Challenges Remain in Reducing 

Unneeded Facilities. GAO-16-869T. Washington, D.C.: September 23, 

2016.

Federal Real Property: Public-Private Partnerships Have a Limited Role 

in Disposal and Management of Unneeded Property. GAO-16-776R. 

Washington, D.C.: August 30, 2016.

Federal Real Property: Improving Data Transparency and Expanding the 

National Strategy Could Help Address Long-standing Challenges. 

GAO-16-275. Washington, D.C.: March 31, 2016.

Federal Real Property: Continued Efforts, Legislation, and Implementing 

GAO Recommendation Could Address Challenges. GAO-15-689T. 

Washington, D.C.: June 16, 2015.

Federal Real Property: Current Efforts, GAO Recommendations, and 

Proposed Legislation Could Address Challenges. GAO-15-688T. 

Washington, D.C.: June 16, 2015.

DOE Real Property: Better Data and a More Proactive Approach Needed 

to Facilitate Property Disposal. GAO-15-305. Washington, D.C.: February 

25, 2015.

Federal Real Property: Excess and Underutilized Property Is an Ongoing 

Challenge. GAO-13-573T. Washington, D.C.: April 25, 2013.

Federal Real Property: High-Risk Designation Remains due to Persistent 

Management Challenges. GAO-13-422T. Washington, D.C.: February 27, 

2013.

Federal Real Property: Improved Data and a National Strategy Needed to 

Better Manage Excess and Underutilized Property. GAO-12-958T. 

Washington, D.C.: August 6, 2012.

Federal Real Property: National Strategy and Better Data Needed to 

Improve Management of Excess and Underutilized Property.

GAO-12-645. Washington, D.C.: June 20, 2012.

Federal Real Property: Proposed Civilian Board Could Address Disposal

of Unneeded Facilities. GAO-11-704T. Washington, D.C.: June 9, 2011.

Related GAO Products
Related GAO Products

Page 45 GAO-17-123 Federal Building Management 

Federal Real Property: Progress Made on Planning and Data, but 

Unneeded Owned and Leased Facilities Remain. GAO-11-520T.

Washington, D.C.: April 6, 2011.

Federal Real Property: The Government Faces Challenges to Disposing 

of Unneeded Buildings. GAO-11-370T. Washington, D.C.: February 10, 

2011.

VA Real Property: VA Emphasizes Enhanced-Use Leases to Manage Its 

Real Property Portfolio. GAO-09-776T. Washington, D.C.: June 10, 2009.

(100565)
The Government Accountability Office, the audit, evaluation, and investigative 

arm of Congress, exists to support Congress in meeting its constitutional 

responsibilities and to help improve the performance and accountability of the 

federal government for the American people. GAO examines the use of public 

funds; evaluates federal programs and policies; and provides analyses, 

recommendations, and other assistance to help Congress make informed 

oversight, policy, and funding decisions. GAO’s commitment to good government

is reflected in its core values of accountability, integrity, and reliability.

The fastest and easiest way to obtain copies of GAO documents at no cost is 

through GAO’s website (http://www.gao.gov). Each weekday afternoon, GAO 

posts on its website newly released reports, testimony, and correspondence. To 

have GAO e-mail you a list of newly posted products, go to http://www.gao.gov

and select “E-mail Updates.”

The price of each GAO publication reflects GAO’s actual cost of production and 

distribution and depends on the number of pages in the publication and whether 

the publication is printed in color or black and white. Pricing and ordering 

information is posted on GAO’s website, http://www.gao.gov/ordering.htm. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 

TDD (202) 512-2537.

Orders may be paid for using American Express, Discover Card, MasterCard, 

Visa, check, or money order. Call for additional information.

Connect with GAO on Facebook, Flickr, Twitter, and YouTube.

Subscribe to our RSS Feeds or E-mail Updates. Listen to our Podcasts.

Visit GAO on the web at www.gao.gov.

Contact:

Website: http://www.gao.gov/fraudnet/fraudnet.htm

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470

Katherine Siggerud, Managing Director, siggerudk@gao.gov, (202) 512-4400, 

U.S. Government Accountability Office, 441 G Street NW, Room 7125, 

Washington, DC 20548

Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, DC 20548

James-Christian Blockwood, Managing Director, spel@gao.gov, (202) 512-4707

U.S. Government Accountability Office, 441 G Street NW, Room 7814, 

Washington, DC 20548

GAO’s Mission

Obtaining Copies of 

GAO Reports and 

Testimony

Order by Phone

Connect with GAO

To Report Fraud, 

Waste, and Abuse in 

Federal Programs

Congressional 

Relations

Public Affairs

Strategic Planning and 

External Liaison

Please Print on Recycled Paper.