Summary: On any given day in the continental United States, about 5,800 transient Navy personnel are lodged off base while traveling on temporary duty. In 1990 the Navy paid an estimated $139 million for off-base per diem. The cost of building and operating the on-base facilities is paid from regular appropriations. To match commercial motel standards, however, installations are allowed to charge a fee for maid and custodial services and amenities not available from appropriated funds. This fee, generally about $4, is a small fraction of the commercial off-base rates that range between $40 to $113 per day. The Navy's transient lodging facilities are not run as efficiently as possible because management controls need improvement. Increased costs of off-base lodging are being incurred because billeting offices (1) rely on a weak reservation system, (2) discourage reservists from using on-base facilities, and (3) have poor control over lodging facilities set aside for senior officials. These problems can be remedied by implementing cost-effective management actions and appropriate internal controls. Navy officials agree and are planning changes to increase efficiency and more effectively control revenues.