An IG report has raised numerous issues regarding management of relocatable buildings by the Navy and Marine Corps, concluding that the services potentially misspent $1.8 million by leasing 32 of the 45 relocatable buildings in a sample, and then an additional $750,000 to acquire 31 of them.

DoD policy is that relocatable structures–designed to be readily erected, disassembled, moved, stored, and reused–are to be used for needs of five years or less, while Navy policy cautions that they are less energy efficient, require more maintenance than permanent facilities, and provide ill-suited working environments, the report said.

However, the report found that Department of Public Works personnel at Navy and Marine Corps installations it reviewed: did not obtain initial approval to acquire seven relocatable buildings; did not have strategies in place to discontinue the use and dispose of eight; did not obtain a waiver to use 16 beyond their limit; and may not have appropriately leased 32 because they did not perform a lease versus buy analysis.

Also, some buildings were improperly classified, “hindering DoD and Department of Navy personnel from accurately assessing space utilization and potentially circumventing the military construction process by using short-term requirements for long-term needs.”

Further, while the Marine Corps is using the DLA’s disposition services to dispose of excess relocatable buildings the Navy is not, and “may be missing opportunities to reuse relocatable buildings in other locations or receive revenue from the sale of relocatable buildings for public use or scrap.”

The IG said that the Navy and Marine Corps agreed with its recommendations for clearer guidance and more oversight.