



A GAO report finds that the Defense Department's use of intergovernmental support agreements, deals letting military bases share services like utilities and road maintenance with local governments, grew from 45 in 2018 to 316 in 2025. Despite officials' enthusiasm for expanding the practice further, GAO found the services' cost-savings estimates did not follow best practices, and some agreements had no cost estimate or cost-benefit analysis at all.
The Navy, Marine Corps and Air Force also lacked procedures to verify whether projected savings matched actual costs after the fact. Separately, GAO found that in nine of 21 reviewed agreements, private contractors performing the work were paid under wage rates that varied from what federal law would require for comparable work under standard federal service contracts.
GAO issued five recommendations for better cost-estimating guidance and verification procedures; the military services generally agreed and said they'd take unspecified action.
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