Summary: In response to a congressional request, GAO testified on the joint use of federally supported research facilities by industries and universities. The testimony was based on a report in which GAO concluded that many of the Agricultural Research Service's (ARS) 148 domestic research locations were not staffed to their design capacity which makes individual research projects more expensive. The overall underuse has resulted primarily from a declining personnel ceiling as well as construction of new facilities. Notwithstanding this underuse, new laboratories are still being planned. To fully use its existing facilities, ARS would require a substantial increase in its annual appropriations and higher personnel ceilings. ARS has closed some facilities and transferred staff to other locations to improve facility use. However, this approach has not been very successful. ARS has also leased or provided research space to other Federal or State agencies and has improved facility use with support personnel hired under cooperative agreements. It has also contracted out certain support services to retain scientists and technicians. GAO has found that closing research facilities and consolidating their functions may be the most viable alternative for reducing the underused capacity. ARS does not have a comprehensive plan to reduce the number of ARS-owned research locations, and many factors need to be considered in developing such a plan. In addition, establishing research priorities is an important factor in developing a comprehensive plan. In response to a GAO recommendation, ARS is developing a strategic plan as a basis for future research management.