Summary of Property Holdings by Location, DOD Component, and Type
as of 30 June 1966

1/ Excluded from the totals are properties under the jurisdiction of Civil Works Division, Department of the Army, valued (millions of dollars) as follows:

2/ Relatively minor values of supply system inventories located in U. S. Possessions are included in overseas areas and reported in the "Foreign" column.

3/ Includes Reserve Fleet.

Includes Active Fleet, Supplies Afloat, and organic property of Fleet Marine Force.
Less than $0.5 million.

was located in the United States; $44.2 billion was in the foreign countries and afloat category, more than half of which is accounted for by the Navy active fleet and the Fleet Marine Forces; and $2.6 billion was in U. S. possessions. Property in the 50 states increased $2.6 billion during the year; that outside increased $4.7 billion, reflecting the deployment of U. S. forces. Again this year, reports of supply system inventories, by location, place inventories located in U. S. possessions and foreign countries together in a combined "overseas"

total.

This section of the report presents a summary and a brief analysis of the inventory of military real property as of 30 June 1966. Detailed statistics on Civil Works property (river and harbor and flood control property under the jurisdiction of the Secretary of the Army) are not included in this report; however, summary totals for informational purposes are shown as memorandum items.

The real property under the control of the military departments is one of the most important assets of the Department of Defense. In order to achieve maximum defense at minimum cost, such real property must be administered in accordance with modern management principles. The real property inventory provides information required to achieve management objectives of better utilization, use of existing real property in lieu of new acquisitions, and reduction of real property holdings and maintenance costs by effecting prompt disposition of excess property.

The first inventory report of the military departments submitted under uniform instructions (Department of Defense Instruction 4165.14) covered an inventory of 1 January 1954 which was completed in November 1954. Data from this first report and each of the subsequent inventory reports have been used in the preparation of Congressional reports by the Department of Defense and the General Services Administration.

The inventory data covering military real property include land and improvements on such property including installed equipment such as fixed overhead crane runways, elevators, lavatories, plumbing and

electrical systems. Machine tools and production equipment at such installations, however, are not included, but are included under

personal property, Part II.

2. Department of Defense Summary of Real Property

Cost of Property Controlled The total cost to the United States

Government of real property controlled by the three military departments as of 30 June 1966 was $38.39 billion (see Table 3). The increase of 2.2 percent over the $37.56 billion reported one year earlier was about the same change as occurred during the preceding year; the dollar increase for FY 1966 was $832 million as compared with $822 million during FY 1965. During the year ending 30 June 1964, the percentage increase in net inventory was only 0.5, the lowest reported since 1955. A large part of the indicated status quo in activity during FY 1964 was the reflection of final disposition actions on properties declared excess in prior years. Continuing emphasis on disposal of unneeded properties reflects in annual inventories as final disposition is accomplished.

The $832 million net increase during the year ending 30 June 1966 resulted from increases of $389 million for the Air Force, $243 million for the Army and $200 million for the Navy. During the preceding year, increases of $124 million for the Navy and $763 million for the Air Force were offset somewhat by a $65 million decrease in Army property inventory. Larger increases occurred in properties outside the United States during FY 1966 than during the preceding year. Of the $832 million net increase on a world-wide basis $524 million was in properties in the United States, $160 million in properties in the possessions, and $148

million in properties in foreign countries. During the year ending 30 June 1965 the increases had been $754 million for the United States, $29 million for possessions, and $39 million for foreign countries.

The distribution of inventory by military department is illustrated in Chart 3. Of the $38.4 billion total as of 30 June 1966, $32.6 billion was in the United States, $1.3 billion in the United States possessions, and $4.5 billion in foreign countries friendly to the United States.

"Controlled," as used throughout this report, has reference to the right of directing the use of property. In connection with buildings, structures, or land, it includes (1) owned (acquired through purchase, condemnation, donation, or transfer); (2) leased; (3) public domain (withdrawn permanently or temporarily by the military departments); (4) temporary use (acquired through license or permit, temporary public land order, temporary executive or territorial order); (5) easements (utility, clearance, etc.); (6) foreign rights (base rights agreements, reciprocal aid, requisitioned, etc.)

This $38.4 billion of military real property does not indicate present market value. Some of the land now owned by the military departments was donated, such as part of Fort Monroe, the original portion of which was donated to the Army by the State of Virginia. Also, some of the land used by the military departments was withdrawn from the public domain. There is no cost for public domain lands and in many instances no costs, or only nominal costs, for donated lands. Land and buildings in some cases were acquired a century or more ago when land prices and building costs were only a fraction of today's prices and costs. Cost data, in some