In an effort to enhance the operational efficiency and effectiveness of Department of Defense facilities, DOD will actively market, under statutory authority, unused and underutilized non-excess property to the private sector.

The DoD has executed a modest number of out leases that generate an annual income of $25 million – ($15M in cash and $10M in in-kind services.)

This income – combined with the savings from base realignment and closure – is important.

The Department believes that enhanced out leasing authority can substantially improve our management of property.

As part of a leasing study requested by Congress, DoD will consider seeking legislation: to expand the types of in-kind services we can receive to include construction…

alter the budget treatment of cash proceeds …

and allow cash proceeds to be spent on a greater array of facility-related requirements, including construction.

In addition, DoD will submit special legislation for broad authority to accommodate more ambitious proposals, such as those being considered at Ford Island, Hawaii, and Brooks Air Force Base, Texas.