Federal Personal Property: Better Internal Guidance and More Action from GSA Are Needed to Help Agencies Maximize Use of Excess
Fast Facts
Every year, federal agencies purchase hundreds of millions of dollars of "personal property," which includes things like office chairs and cars. They also dispose of excess property—things they no longer need.
Federal regulation requires agencies to consider whether excess federal property can meet their needs. It is generally available to them for free.
We found that from 2016 to 2020, agencies obtained $3.9 billion (based on original cost) in excess property—a small part of what was available. We found ways agency guidance could be improved to help maximize the use of excess property and save money. Our recommendations address this issue.
Reusing excess property, like office chairs, maximizes government assets and minimizes new purchase costs.
Highlights
What GAO Found
Before purchasing “personal property,” which ranges from office supplies and food to precious metals, the Federal Management Regulation (FMR) requires executive agencies to consider whether excess property, already owned by the government, can meet their needs. Excess property is generally available at no charge (excluding costs to transport or ship) to agencies. From 2016 to 2020, agencies government-wide obtained $3.9 billion—based on the property's original acquisition cost—in excess personal property. Comparing $3.9 billion to the $206 billion in property agencies purchased in the same time period, excess property was not a significant source of supply. Further, this $3.9 billion represented a small part of the excess property available to agencies (see figure). It is unclear whether agencies could have obtained excess property to a greater extent because data on purchases and on excess property do not contain enough detail to correlate specific products agencies purchased to specific products available as excess. In addition, some categories of property agencies purchased—such as perishables and national security sensitive items—are not typically available as excess.
Percentage of Reported Excess Personal Property Obtained by Agencies Government-Wide by Number and Value, Fiscal Years 2016 to 2020
GAO identified four essential elements from the FMR on considering excess property that agencies should address in their internal guidance. These elements include determining when it is practicable to check for and obtain excess property and evaluating the suitability of excess property to meet agency needs. The guidance at five selected agencies —Bureau of Indian Affairs (BIA); Customs and Border Protection (CBP); Federal Aviation Administration (FAA); Securities and Exchange Commission (SEC); and U.S. Agency for International Development (USAID)—varied, but none addressed all four elements. For example, two agencies' guidance addressed three elements while one agency's guidance did not address any. Without guidance that addresses the four elements, agencies may not be obtaining excess property to the extent they could in order to minimize expenditures for new property. The General Services Administration (GSA) is responsible for promoting the maximum use of excess property by executive agencies and issued the FMR and other guidance for agencies. However, GAO's findings indicate that these efforts may be insufficient, and GSA officials said GSA has not assessed its current efforts or other actions that could increase agencies' use of excess. After such an assessment, for example, GSA may be able to take actions that could help agencies more consistently meet the requirement to consider excess and increase the likelihood that agencies will maximize their use of excess property and save taxpayer dollars.
Why GAO Did This Study
Every year, executive agencies purchase billions of dollars of personal property while also disposing of property that is excess, or no longer needed. This excess personal property represents a significant government investment and its reuse maximizes government assets and minimizes new purchase costs.
GAO was asked to review federal use of excess personal property. This report: (1) describes what is known about the extent that agencies obtained excess personal property and (2) assesses the extent to which selected agencies' internal guidance addressed elements from the FMR for considering excess property and opportunities for GSA to promote the use of excess. GAO reviewed federal regulations and analyzed data on purchases of personal property and on excess property obtained. GAO reviewed five agencies' guidance on considering excess property and interviewed agency and GSA officials. GAO selected BIA, CBP, FAA, SEC, and USAID based on the amounts of property they purchased and excess property they reported and obtained.
Recommendations
GAO is making six recommendations, including (1) that each selected agency ensure its internal guidance on considering excess property fully addresses the FMR elements and (2) that GSA assess its efforts to promote agencies' maximum use of excess property and take action that will help agencies implement better guidance. All selected agencies agreed with our recommendations. GSA agreed with our findings and said it would take action on our recommendation.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Bureau of Indian Affairs | The Director of the Bureau of Indian Affairs should ensure that internal guidance on considering excess personal property incorporates, at a minimum, the requirement to consider excess property, relevant roles and responsibilities, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. (Recommendation 1) |
The Bureau of Indian Affairs (BIA) concurred with this recommendation and said it would take steps to implement it. In February 2024, BIA said it had updated its purchase card guidance and expected to update its purchase request guidance in the next month to include the requirement to consider excess personal property before purchasing new. We will continue to monitor BIA actions in response to this recommendation.
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| United States Customs and Border Protection | The Commissioner of Customs and Border Protection should ensure that internal guidance on considering excess personal property incorporates, at a minimum, when it is practicable to check for and obtain excess property and how to evaluate the suitability of excess property for meeting agency needs. (Recommendation 2) |
Every year, executive agencies purchase billions of dollars of personal property while also disposing of property that is excess, or no longer needed. This excess personal property represents a significant government investment and its reuse maximizes government assets and minimizes new purchase costs. The Federal Management Regulation (FMR) includes a requirement for agencies to consider excess property before purchasing new property. GAO selected Bureau of Indian Affairs, CBP, FAA, SEC, and U.S. Agency for International Development for review based on the amounts of property they purchased and excess property they reported and obtained. In 2022, GAO reported that it identified four essential elements from the FMR on considering excess property that agencies should address in their internal guidance. These elements are: (1) the requirement to consider excess property, (2) defining relevant roles and responsibilities, (3) determining when it is practicable to check for and obtain excess property, and (4) evaluating the suitability of excess property for meeting agency needs. The guidance at five selected agencies varied, but none addressed all four elements. The agencies' internal guidance often did not include essential information to provide reasonable assurance of compliance with the FMR requirements. Specifically, CBP officials told GAO they implemented the FMR requirement in their internal guidance covering personal property management and government purchase cards. However, GAO found that CBP's property management and purchase card guidance did not include information on determining when it is practicable to check for and obtain excess property and CBP's purchase card guidance did not include information on evaluating suitability of excess. For example, CBP officials described circumstances in which it was not necessary to check for excess, such as before purchasing low-cost items like office supplies. However, CBP's guidance did not provide any information about circumstances in which checking for excess was or was not necessary. By including the requirement for determining when it is practicable and suitable to check for and obtain excess property in its guidance, CBP may be able to maximize its use of excess property and the cost savings that this source of supply can bring. Accordingly, GAO recommended that CBP should ensure that internal guidance on considering excess personal property incorporates, at a minimum, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. In December 2022, CBP issued an update to its purchase card guidance that included information on evaluating the suitability of excess property for meeting agency needs. Specifically, the guidance stated that, whenever possible, purchase card holders should obtain excess personal property instead of purchasing new, provided that the age and condition of the property, as well as any transportation or rehabilitation costs required, do not exceed the fair market value of the item. In December 2023, CBP drafted changes to its personal property guidance that addresses when it is practicable to check for and obtain excess property. Specifically, CBP included factors from the FMR to be considered when obtaining excess property. For example, purchasers should evaluate whether the cost of obtaining and maintaining excess property exceed the cost of purchasing and maintaining new property. These changes will be incorporated in CBP's next revision of this guidance. In the interim, CBP has begun a semi-annual process of distributing an internal communication on the requirement to consider excess personal property. By taking these actions, CBP is better positioned to ensure that its employees are consistently considering or using excess property to the maximum extent possible to minimize new expenditures, as required.
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| Federal Aviation Administration | The Administrator of the Federal Aviation Administration should ensure that internal guidance on considering excess personal property incorporates, at a minimum, relevant roles and responsibilities, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. (Recommendation 3) |
Every year, executive agencies purchase billions of dollars of personal property while also disposing of property that is excess, or no longer needed. This excess personal property represents a significant government investment and its reuse maximizes government assets and minimizes new purchase costs. The Federal Management Regulation (FMR) includes a requirement for agencies to consider excess property before purchasing new property. GAO selected Bureau of Indian Affairs, CBP, FAA, SEC, and U.S. Agency for International Development for review based on the amounts of property they purchased and excess property they reported and obtained. In 2022, GAO reported that it identified four essential elements from the FMR on considering excess property that agencies should address in their internal guidance. These elements are: (1) the requirement to consider excess property, (2) defining relevant roles and responsibilities, (3) determining when it is practicable to check for and obtain excess property, and (4) evaluating the suitability of excess property for meeting agency needs. The guidance at five selected agencies varied, but none addressed all four elements. The agencies' internal guidance often did not include essential information to provide reasonable assurance of compliance with the FMR requirements. Specifically, FAA officials told GAO they implemented the FMR requirement in their internal guidance covering personal property management and government purchase cards. However, GAO found that FAA's property management guidance did not define relevant roles and responsibilities or include information on determining when it is practicable to check for and obtain excess property. GAO also found that FAA's purchase card guidance did not include information on practicability or on evaluating suitability of excess. For example, FAA officials described circumstances in which it was not necessary to check for excess, such as before purchasing low-cost items like office supplies. However, FAA's guidance did not provide any information about circumstances in which checking for excess was or was not necessary. By including the requirement for determining when it is practicable and suitable to check for and obtain excess property in its guidance, FAA may be able to maximize its use of excess property and the cost savings that this source of supply can bring. Accordingly, GAO recommended that FAA should ensure that internal guidance on considering excess personal property incorporates, at a minimum, relevant roles and responsibilities, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. In January 2023, FAA made changes to its personal property guidance that addressed roles and responsibilities and when it is practicable to check for and obtain excess property. Specifically, FAA guidance defined responsibility for ensuring consideration of excess and included factors from the FMR to be considered when obtaining excess property. For example, purchasers should evaluate whether the cost of obtaining and maintaining excess property exceed the cost of purchasing and maintaining new property. In addition, the FAA guidance also included seven criteria that purchasers are to use to assess suitability of excess property. In March 2024, FAA updated its purchase card guidance to include information on when it is practicable to consider excess and on evaluating the suitability of excess property for meeting agency needs. Specifically, the guidance references both FAA's personal property guidance and procurement guidance, which include information on practicability and suitability. By taking these actions, FAA is better positioned to ensure that its employees are consistently considering or using excess to the maximum extent possible to minimize new expenditures, as required.
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| United States Securities and Exchange Commission | The Chair of the Securities and Exchange Commission should ensure that internal guidance on considering excess personal incorporates, at a minimum, the requirement to consider excess property, relevant roles and responsibilities, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. (Recommendation 4) |
The Securities and Exchange Commission (SEC) concurred with this recommendation. In May 2023, SEC issued a new excess personal property policy that sets forth how the agency will consider obtaining excess property as a way to prevent unnecessary acquisition. Specifically, the policy identifies or elaborates on each of the four essential elements GAO identified, including the requirement to consider excess property, roles and responsibilities, practicability to check for and obtain excess property, and suitability of excess personal property.
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| U.S. Agency for International Development | The Administrator of the U.S. Agency for International Development should ensure that internal guidance on considering excess personal property incorporates, at a minimum, relevant roles and responsibilities, when it is practicable to check for and obtain excess property, and how to evaluate the suitability of excess property for meeting agency needs. (Recommendation 5) |
The U.S. Agency for International Development (USAID) concurred with this recommendation and said it would take steps to implement it. In March 2024, USAID said it will implement additional purchase card procedures to ensure consideration of excess property. USAID said it anticipates completion of these actions by the end of July 2024. We will continue to review and assess USAID's efforts to address this recommendation.
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| General Services Administration |
Priority Rec.
The Administrator of the General Services Administration should assess its current efforts to promote the maximum use of excess personal property and take further actions that could increase the use of excess personal property; such actions could include promoting additional policies or methods that will help agencies implement guidance to provide assurance that excess property is considered before purchasing new. (Recommendation 6) |
Every year, executive agencies purchase billions of dollars of personal property while also disposing of property that is excess, or no longer needed. This excess personal property represents a significant government investment and its reuse maximizes government assets and minimizes new purchase costs. Executive agencies are statutorily required to obtain, to the extent practicable, excess property and GSA is required to prescribe policies and methods to promote the maximum use of excess property. GAO selected Bureau of Indian Affairs, CBP, FAA, SEC, and U.S. Agency for International Development for review based on the amounts of property they purchased and excess property they reported and obtained. In 2022, GAO reported that the internal guidance at five agencies GAO selected did not include essential information to provide reasonable assurance of compliance with the requirement to obtain excess property when practicable. GSA officials said that agencies are responsible for meeting the requirement to consider excess property and that GSA does not have the authority to oversee agencies' compliance with the requirement to consider excess. While GSA is responsible for promoting maximum use of excess property, according to GSA officials, GSA has not assessed its current efforts or the extent to which additional actions could increase agencies' use of excess property. Assessing agencies' needs and providing more specific guidance could help agencies government-wide to improve their own guidance, and to generate more robust consideration of excess property to meet agencies' needs. Accordingly, GAO recommended that GSA should assess its current efforts to promote the maximum use of excess personal property and take further actions that could increase the use of excess personal property; such actions could include promoting additional policies or methods that will help agencies implement guidance to provide assurance that excess property is considered before purchasing new. In 2024, GAO confirmed that GSA assessed its current efforts and identified areas for improvement. Specifically, GSA identified and interviewed 14 organizations within GSA that play a role in promoting agencies' use of excess personal property. From these efforts, GSA identified and implemented 6 actions that could increase agencies use of excess personal property. For example, GSA modified a training module for acquisition personnel to emphasize the requirement to obtain excess personal property. GSA went beyond GAO's recommendation and led a working group that developed 12 recommendations to increase the promotion and consideration of excess property. GSA has taken action to implement some of these recommendations and is evaluating others. By taking these actions, GSA increases the likelihood of agencies obtaining excess property thereby minimizing new purchases and saving taxpayer dollars.
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