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LCD-78-338 1 (1978-09-14)

handle is hein.gao/gaobaayaw0001 and id is 1 raw text is: DOCUMENT RESUME 07239 - [E26276561 General Services Idministrationts Practices for Altering Leased Buildings Should Be Improved. LCD-78-338; B-118623. September 14, 1978. Released September 18, 1978. 29 pF. + 3 appendices (7 pp.). Report to Pep. Jack Brooks, Chairman, House Committee on Government Operations; by Bluer B. Steats, Comptroller General. Issue Area: Increase in the Amourt of govt. Leased Space Despite Congress' Baphasie on Federal Construction. (710). Contact: Logistics and Communications Div. Budget Ft ztion: General Government: General Property and Records Management (804. Organization Concerned: General Services Administration. Congessional Relevance: House Conittee on Government Operations. Rep. Z .k Brooks. Authority: Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 252). Econosy Act of 1932 (40 U.S.C. 278a). Public Buildings Act of 1959, as amended (140 U.S.C. 606). F.P.R. 1-18.102-1. FoP.R. 1-3.807-3. F.P.R.R. 101-19.002. OB Circular A-104. The ,;eneral Services administration (GSA) leases about 91.3 million sqtare feet of space to accommodate Federal departments ana- agencies at annual rents of $455 million. It fincal year (FY) 1977, obligations for alterations to leased buildings were in excess of $36 million. Findings/Coaclusions: The following deficiencies in GSAIs contracting practices for altering leased buildings were identified: excessive use of sole-source contracting with the building oune.s for alterations; rot preparing independent Government estimates to aid in negotiating contract pricqs; a single otganizational unit responsible for preparing estimates, negotiating contracts, approving payments, and inspecting work; performing major alterations before lease expiratio& without attceptitig to renegotiate tke lease period or the rent; failure to adequately consider purchase for construction of alternate space; paying rent while space was not available for occupancy; and failure to document inspections of alteration work. is a result of reviews and investigations, GS1 instituted a new policy requiring competitive procurement and issued new procedures for inal-ecting alteration work. If properly implemanted, these actions may correct some of the deficiencies. The Economy Act of 1932 limits the amount that may be expended on alterations in a leased building, but it has not been effective in accomplishing this. Requiring specific congressional authorization of alterations would te mcre effective. GSA funding practices for alteration work have not always been sound, and yearend obligations for F! 1977 may be invalid or misclassified. Recommendations: Tie Adainistrator, GSA, should: obtain certificates of c.rrent cost and pricing data for lessors for negotiated lease alteration

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