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PLRD-81-62 1 (1981-08-21)

handle is hein.gao/gaobabchy0001 and id is 1 raw text is: .~g~UNITED STATES GENERAL ACCOUNTING OFCE w WASHINGTON, D.C. 20548 PROCUREMENT, LOGISTICS, AN0 REAOINES DIVISION B-204377 AUGUST 21, 1981 The Honorable David A. Stockman Director, Office of Management and Budget 116184 Dear Mr. Stockman: Subject: GAO'sLbservations~on the Proposed Revision to Executive Order 12072 on the Policy of Meeting Federal Space Needs in Urban Areas (PLRD-81-62) During the past 2 years, we have issued eight reports (see enc.) in response to congressional requests for information on aspects of the implementation of Executive Order 12072. This order establishes, among other policies, the policy of meeting Federal agencies' space needs in urban areas by locating the agencies in central business areas to encourage urban development and redevelopment. Because of considerable interest, we have reviewed the General Services Administration's (GSA's) implemen- tation of this policy. GSA recently submitted a proposed revised Executive order to the Office of Management and Budget for its consideration. We understand that the revised order, which includes new policies on siting Federal facilities, could become effective during September 1981. In view of the proposed replacement of Executive Order 12072, we have suspended our work on. the Federal facilities siting policy and are offering you the following observations based on our prior work. We believe that siting Federal facilities to aid urban economies as called for by Executive Order 12072 and GSA's implementing regulations have resulted in some increased Federal costs without clear evidence that the local economies substan- tially benefited. We noted instances where GSA has relocated Federal activities to central business areas of cities to encour- age urban development and redevelopment without adequately con- sidering the impact of such relocations on the Federal agencies' missions, the added cost of space, or the benefits to the cities involved. (945456)

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