Summary: As federal agencies confront shrinking budgets and increasing demands for better service, the importance of making the most effective fixed-asset acquisitions grows. Fixed assets often require large amounts of resources up front but can yield long-term efficiencies and savings. Prudent capital planning can help agencies make the most of limited resources, while failure to make timely and effective capital acquisitions can result in higher long-term costs. This report reviews how five federal organizations--the Army Corps of Engineers, the Coast Guard, the Interagency Fleet Management System and Public Buildings Service of the General Services Administration, and the U.S. Geological Survey--plan and budget for fixed assets. GAO examines (1) how these organizations believe the current budget process affects their capital acquisitions and (2) whether funding mechanisms exist--used or proposed by the organizations--that might be helpful in planning and budgeting for fixed assets. GAO also examines the response to the Office of Management and Budget's Bulletin 94-08, "Planning and Budgeting for the Acquisition of Fixed Assets."
