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DCCUMENT RESUME
04930 - [P0265136]
General Services Admitistration's Practices in Awarding and
Administerin Lease48d Be Improvad. LCD-77-354J; ±-95136.
January 2pi, 1978. + . 2 appendices (6 pp.).
Report to the Congress.; by tAmer B. Staats, Comptroller General.
Issue Area: Facilities 4nd Material Manageaent: Building,
Buying, or Leasing Federal Facilities and Equipment (706).
Contact: Logistics and Communications Div.
Budget Function: General Government: General Property and
Records Kanagement (0 4)
Orqanization Concerned: General Services Administration.
Conqressionai Relevance: House Committee on Public Works and
Transportation; Penate Committee on Environment and Public
Works; Congress.
Autnority: Federal P rQp'ty and Administrative Services Act of
1949, as amended (40 U.S.C. 490). Public Buildings Act of
1959, as amended (40 U.S.C. 606). E'onomy Act of 1932, as
amended (40 U.S.C. _78a). 52 Comp. Gen. 230. 12 Comp. Gen.
546. 29 Comp. Geq. _99.
The General Services Administration (GSA) leases 90.5
million square feet Of space at an aunual rent of about $400
million to accommoda~ * ?ederal departzents and agenoies.
Commitments for currqft leases total about $2.1 billion.
Findinqs/Conclusions: Deficiencies were found in GSA's practices
for awarding leases. These deficiencies involved some of GSA's
major functions in acguiring leased space and included. avoiding
the requirement for congressional authorization of major leases,
inconsistent methods of calculating rent for determining
compliance with the Economy Act limitation, failure to determine
compliance with the Economy Act lim..tation, limited competition
obtained ii acquiring leased space, inadequate consideration of
scme offers, leasing space not ready for occupancy, and leasing
more space than required. GSA also negotiated uneconomical
rental adjustments for Government assumption of the utilities
and services costs previously furnished by the lessors aDd for
vacating leased space. The Government %as also paying for
utilities used by coqmercial tenants in Government-leased
buildinqs. Recommend&t,ons: The Administrator of GSA should:
require period.c ravIiews of the leasing program to help insure
tnat existiq procedures for obtaining congressional approval
are met; require revkewyand cldrification of procedures and
forms used to determiine compliance with the Economy ACt and
oversee anL evaluate -gional efforts periodically in carrying
out the requireients of the act; insure that competition is
ottained to the ma.xikum practical extent tor new leases and
follow-on leases; require adequate consideration of all offers
durinq preaward evaluations and negotiations and solicitation of
space within del.neate4 geographical areas of sufficient size to
allow more offerors to participate in solicitations; insure that](ViewImageLocal?handle=hein.gao/gaobaawpk0001&div=1&collection=&method=preview&ext=.png&size=3)