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In response to a congressional request, GAO reviewed the Navy's plan to move from leased space and redevelop the Washington Navy Yard to provide centralized office space for 18,000 employees. GAO also evaluated the plan's cost effectiveness and reviewed a draft of the final environmental impact statement on the relocation of Navy personnel from leased office space to Government-owned office space.

GAO found that by redeveloping the Navy yard and moving out of leased space the Navy would save $263 million in present value terms over a 30-year period, and the breakeven point would be 16 years. In addition, the environmental impact report draft concluded that the Navy yard was the preferred alternative of four sites previously determined to have high potential for accommodating a major new Navy administrative complex and that movement to the Navy yard would provide the most positive environmental benefits with the fewest negative environmental consequences. Furthermore, under the Navy plan, most of the people moving to the Navy yard would vacate leased space in northern Virginia where the demand for office space is strong and lease rates will continue to rise. Accordingly, GAO found that the Navy plan to redevelop the Navy yard and to move from leased space is cost effective and should result in significant savings to the Government.