UNDER SECRETARY OF DEFENSE 1100 DEFENSE PENTAGON WASHINGTON, DC 20301-1100

MEMORANDUM FOR

UNDER SECRETARIES OF DEFENSE DIRECTOR, DEFENSE RESEARCH AND ENGINEERING ASSISTANT SECRETARIES OF DEFENSE GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE DIRECTOR, OPERATIONAL TEST AND EVALUATION ASSISTANTS TO THE SECRETARY OF DEFENSE DIRECTOR, ADMINISTRATION AND MANAGEMENT DIRECTORS OF THE DEFENSE AGENCIES DIRECTORS OF THE DOD FIELD ACTIVITIES

INFO COPY:

SECRETARIES OF THE MILITARY DEPARTMENTS CHAIRMAN OF THE JOINT CHIEFS OF STAFF

SUBJECT:

Management Reform Memorandum #7 -- Streamlining the Management of Leased Property

     The Department currently spends over $900 million a year to lease buildings and property, yet there is no systematic oversight of this process. Each service and defense agency has developed its own plan and procedures in isolation, preventing the opportunity to capture efficiencies through coordinated efforts. Data on departmental leasing is inadequate and inconsistent, and is not integrated into long-term force and infrastructure planning.

     I am asking the Acting Under Secretary (Acquisition and Technology) to join with me in establishing an integrated process team that would revise existing or develop new policies, and insure consistent and accurate record keeping and management of property leases on a department-wide basis. This should be undertaken in cooperation with the Director for Administration and Management. I am requesting an initial report from the team by July 1, with a final blueprint by October 1. The plan should survey business procedures and tools available in the private sector. The plan should also contain an evaluation of opportunities to shift lease administration to the private sector.

     Your cooperation in supporting the development of this coordinated plan will be appreciated.

     In approximately two weeks from the date of this memorandum, I will have my secretary arrange for a meeting with the USD(A&T) to discuss the status of this joint effort.

John J. Hamre