In 2017, the Federal Aviation Administration’s (FAA) had $104 million in annual rent, with office and warehouses comprising about three-quarters of that total. That three-quarters represents a potential value of $1.4 billion. However, FAA has not maintained accurate data on its leases or established effective policies and procedures to help ensure its office and warehouse leases are cost-effective.
According to the report, over half of the leases OIG sampled contained data errors, lacks lease efficiency, and has not established sufficient controls to validate lease payments. OIG projects that $37.6 million in funds could have been better used by FAA due to the agency’s management weaknesses and its oversight of FAA-leased offices and warehouses.Read the full report