Management Advisory: Evaluation of the DoD’s Actions to Address Mold Hazards in Naval Air Station Key West Privatized Military Housing

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Date Issued

Thursday, February 12, 2026

Submitting OIG

Department of Defense OIG

Agencies Reviewed/Investigated

Department of Defense

Report Number

DODIG-2026-048

Report Type

Inspection / Evaluation

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 8 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2026-2048-DEV0SR-0001-0001	No	$0	$0
(U) Rec. 1: The DoD OIG recommended that the Commander of the Naval Facilities Engineering Systems Command Southeast review the February 2023 section 3051 inspection reports and require the Navy Southeast Region privatized housing company to address systemic life, health, and safety issues, such as mold and moisture.
D-2026-2048-DEV0SR-0001-0002	No	$0	$0
(U) Rec. 2: The DoD OIG recommended that the Commander of Naval Air Station Key West refer residents with health concerns identified during the Navy assessment team inspections to a medical treatment facility for assessment to determine whether association existed between the environmental safety and health issues in military housing.
D-2026-2048-DEV0SR-0001-0003.a	No	$0	$0
(U) Rec. 3.a: The DoD OIG recommended that the DoD Chief Housing Officer and Defense Health Agency Director coordinate to define the procedures to refer patients to a medical treatment facility for a medical assessment.
D-2026-2048-DEV0SR-0001-0003.b	No	$0	$0
(U) Rec. 3.b: The DoD OIG recommended Defense Health Agency Director update Defense Health Agency Administrative Instruction 6050.01 to incorporate referral procedures.
D-2026-2048-DEV0SR-0001-0003.c	No	$0	$0
(U) Rec. 3.c: The DoD OIG recommended that the DoD Chief Housing Officer publish guidance, consistent with Defense Health Agency Administrative Instruction 6050.01, that establishes procedures to refer patients to a medical treatment facility for a medical assessment.
D-2026-2048-DEV0SR-0001-0004.a	No	$0	$0
(U) Rec. 4.a: The DoD OIG recommended that the DoD Chief Housing Officer establish guidance for the Military Departments on how to interpret and implement 10 U.S.C. 2893.
D-2026-2048-DEV0SR-0001-0004.b	No	$0	$0
(U) Rec. 4.b: The DoD OIG recommended that the Secretary of the Navy conduct a review to determine whether the Navy Southeast Region privatized housing company demonstrated a pattern of failing to remedy, or failing to remedy in a timely manner, health or environmental hazards.
D-2026-2048-DEV0SR-0001-0004.c	No	$0	$3,950,000
(U) Rec. 4.c: The DoD OIG recommended that the Secretary of the Navy take appropriate corrective action in response to the review in Recommendation 4.b, including whether to deny unawarded performance incentive fees (that we estimated as $3.95 million), in accordance with 10 U.S.C. 2893.