GAO: Cost-Sharing Could Mean Faster Construction and Less Staff

A proposed multibillion-dollar program could speed up embassy

construction and reduce staffing levels overseas, but the

agencies that would share the costs have “expressed concern”

over its implementation, the Government Accountability

Office has said.


It said State’s bureau of overseas buildings operations

would manage the program, that if enacted, would mean 30

agencies would pay $17.5 billion to build 150 new

high-security embassies by 2018, beginning in 2005.


The administration’s proposed Capital Security Cost-Sharing

Program could save $1.4 billion each year from fiscal

2009 through 2018, with State paying about $920 million

and other agencies paying $480 million.


GAO did not make any recommendations, but said the

program has the potential to result in funds to speed up

embassy construction, “encourage agency rightsizing”

overseas, and add discipline to staffing projections.


Some non-State agencies object to fees based on personnel

“head-counts,” saying the bill arising out of that

formula would harm their overseas missions — and have

asked for “interagency mechanisms” to work through

implementation issues, according to GAO-05-32.


It said State is concerned with imprecise staffing

projections what would result in agencies building too

much office space and said without cost-sharing

employees are at greater risk.

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