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B-171019 1 (1973-04-26)

handle is hein.gao/gaobaagfo0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WAHINGTON. D.C. B-171019 C The Honorable William V. Roth, Jr. LM096391 United States Senate Dear Senator Roth: Pursuant to your request of October 18, 1972, we looked into the costs of redecorating the Law Enforcement Assistance f Administration's (LEA's) headquarters office in the Indiana Building, 633 Indiana Avenue NW., Washington, D.C. We found no evidence of any violations of applicable laws or regula- tions. The General Services Administration (GSA) leases the /7 space in the Indiana Building from Indiana Associates at an annual rental of $506,531.76; LEAA occupies 9 of the 13 floors. The original lease was due to expire on August 31, 1975. On February 1, 1973, a 10-year extension of the lease was entered into, effective on that date. GSA authorized the renovations in August 1971, even though the original lease did not contain an option-to-renew clause and thus did not provide any guarantee that the owner would renew the lease. GSA told us that it felt justified in authorizing the renovations because the-owner had continually assured GSA of his desire to negotiate a reasonably priced extension. GSA further stated that, in the event it could not have satisfactorily negotiated an extension of the lease, the Government could have exercised its right of eminent domain if this was determined to be prudent and necessary. We believe that GSA should not have authorized the renovations at the Indiana Building without more assurance that the lease would be extended. As of March 21, 1973, the renovation costs amounted to $391,542--$7,500 for design services; $82,585 for carpeting, wallcovering, draperies, and furniture; and $301,457 for re- pairs and alterations. An estimated additional $9,173 is to be spent for a smoke-detection system. GSA records stated that the renovation was necessary to meet LEAA's current space needs. The costs are being paid from moneys appropriated for LEAA administrative expenses.

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