FACILITIES MODERNIZATION: DOD Guidance and Processes Reflect Leading Practices for Capital Planning
Abstract
In 2005, the Office of the Secretary of Defense (OSD) developed the Facilities Modernization Model (the model) to estimate the Department of Defense's (DOD) annual-funding requirements for modernization. However, OSD officials stated that they decided in 2009 not to implement the model and identified two primary reasons for their decision. First, OSD senior leadership determined the model was based in part on a key assumption about the expected service life of DOD facilities that officials did not believe reflected the difficulty in predicting new technologies and mission changes that would affect modernization of DOD facilities Second, OSD officials determined that the model's outputthe estimate of total annual funding for modernization requirementsdid not accurately account for the cyclical nature of facility modernization, in which the costs could be higher in one year and lower in the next. Therefore, the officials stated that OSD determined that the model was not a reliable forecasting tool for the modernization funding requirements as part of DOD's budget submission. Without the model, DOD makes its capital-investment decisions, including those related to facilities modernization, using a mix of projections and project-by-project estimates.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 2015
- Accession Number
- AD1169268
Entities
People
- Johana Ayers
Organizations
- United States Government Accountability Office