Development of Ford Island, Pearl Harbor, Hawaii

Abstract : The audit was in response to a DoD Hotline complaint regarding the Navy plan to sell 122 acres of Government land located in Pearl City, Hawaii, to finance the construction of a causeway from Pearl Harbor Naval Base to Ford Island, Hawaii. Upon completion of the causeway, the Navy plans to develop Ford Island as a military family housing area. The DoD Hotline complaint alleged that the Navy was not receiving the fair market value for the land, the Navy was understating the estimated cost to construct the causeway and to develop Ford Island, and the plan to develop Ford Island was not justified. After the draft report was issued, the Deputy Secretary of Defense deconsolidated military family housing management on Oahu. The primary objectives of the audit were to determine whether the Navy was receiving the fair market value for the property being sold and whether the development of Ford Island as a military family housing area was justified and cost-effective. We evaluated the requirements for military family housing on Oahu, the justification for community support projects, and the requirements for upgrading the infrastructure on Ford Island. The audit also included an evaluation of the internal controls over the requirement validation and justification process for military construction projects planned for Ford Island and management's implementation of the DoD Internal Management Control Program.