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B-174594 1 (1972-02-16)

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                0-M Ofi i Congreesa81 RAU.
                COMPTROLLER GENERAL OF THE UNITED 'VrES

                   RELEASED


B-174594                                          FE7



Dear Mr. White:

     Your letter of November 15, 1971, requested that we un-
dertake a review of the preliminary negotiations between the
General Services Administration (GSA) and other parties con-
cerning the disposition of the Castner Range area before its
transfer to the jurisdiction of GSA. The Castner Range,
adjacent to the city of El Paso, T6xas, and now a part of
Fort Bliss, consists of about 8,300 acres.

     At the meeting held in your office on December 16, 1971,
our representatives presented the results of our review of
the GSA files and of our discussions with GSA and other Fed-
eral agency officials. We pointed out that (1) GSA had not
malde a formal appraisal of the land, (2) GSA had not entered
into formal arrangements with other parties relating to the
disposition of the Castner Range, and (3) the Forest Service,
Department of Agriculture, had not made a prior formal ar-
rangement for the sale of the land.

     By Executive Order No. 11508 dated February 12, 1970,
the Administrator of General Services was directed to insti-
tute, and conduct on a continuing basis, a survey of the real
property holdings of all executive agencies for the purpose
of identifying properties that are not utilized, are under-
utilized, or are not being put to their optimum use. Ac-
cording to a GSA survey report dated July 10, 1970, the
greater part of the Castner Range  lyd, estimated to be worth
about $10 million, wa-fi_6_fbing used. GSA recommended that
the Castner Range, except for three small areas, be reported
as exce§spjqrKty. A GSA official told us that the $10 mil-
lion estimate of value was a guess, intended to give the sur-
vey report reader some idea of the value of the land.

     GSA procedures provide that an appraisal be made by an
independent contract appraiser to determine the fair market
value of Government-owned property to be disposed of by GSA
through sale, transfer, donation, or exchange. At the time
of our review in December 1971, an appraisal of the Castner
Range had not been made.

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