The Department of Defense Office of Inspector General (DoD OIG) announced today the release of the “Audit of the Military Services’ Oversight of Privatized Military Housing Maintenance” report. The DoD OIG determined that the Military Services did not effectively oversee the performance of Hunt Military Communities (Hunt), one of the country’s largest private owners of military family housing.

The DoD OIG reviewed family housing units at seven installations across the United States. At all seven installations, the DoD OIG found that the Military Departments’ assistant secretaries responsible for housing did not provide Military Housing Offices (MHO) with sufficient resources for ensuring Service families received adequate housing. Furthermore, Military Departments inconsistently addressed maintenance work orders including life, health, and safety hazards resulting in disparate levels of service for families in different locations.

Additionally, the DoD OIG found that the Departments of the Army and Navy failed to provide adequate oversight of their incentive fee award plans. The DoD OIG analysis of one award identified that the Fort Sam Houston MHO overpaid by more than $11,000. If not corrected, Fort Sam Houston will continue to make overpayments, resulting in a potential misuse of $1.4 million for the remainder of the agreement with Hunt.

The DoD OIG made 19 recommendations, including that Military Departments’ assistant secretaries develop plans and internal controls to provide better oversight of privatized housing companies, such as Hunt. The DoD OIG also recommended that the Assistant Secretary of Defense for Energy, Installations, and Environment establish uniform definitions for life, health, and safety hazards and emergency, urgent, and routine work order categories. Further, they should establish uniform response and completion times for the work orders.  

The DoD OIG will continue monitoring the implementation of the recommendations.