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![handle is hein.gao/gaobaawpr0001 and id is 1 raw text is:
- DCCUMENT RESUME
04935 - [B01950851 ]les-icted)
Space Rental Rates Char~ed the Department of Agriculture by the
General Services Admin s tration. LCD-78-305; B-95136. January
18, 1978. 6 pp.
Report to Rep. George 'N'. ahon, Chairnan, House Committee on
Appropriations; Sen. aren G. Magnuson, Acting Chairman, Senate
Committee on Appropriat Ions; by Elmer B. Staats, Comptroller
General.
Issue Area: Facilititfr'and Material Management (700).
Contact: Logistics antCommunications Div.
Budget Function: Genifir Government: General Property and
Records Management*'(804); General Government: Other General
Government (806).',
Organization Concerned:JGeneral Services Administration;
Department of AgqiTu]ture.
Congressional RelevAnce House Committee con Appropriations;
Senate Committee-a' Appropriations. Rep. GeorgQ H. Mahon;
Sen. Warren G. Mlatson.
Authority: Federal Prdperty and Administrative Services Act of
1949, as amended (X' U.S.C. 490(j)). H. Rept. 95-520.
The Federal Property and Administrative Secvices Act of
1949 directs the General Services Administration (GSA) to charge
agencies rent at rates approximating commercial charges for
comparable facilities but does not contain criteria for
computing these rates. To determine the approximate commercial
rates for buildings Qr fi-cal years (F s) 1975, 1976, and 1977,
GSA used composite area rental rates adjusted by quality ratings
assiqned to each building. In response to a prGvious GAO report,
GSA adopted a new method for determining rates in which each
space is independently appraised and a fair annual rate,
comparable to commercial rates, is established. EacTh year,
one-third of GSA-contr#lled buildings are to be reappraised and
rental rates maintained for 3 years. GSA officials telieved that
the Department of Agr4iulture's (USDA) rental payments for FYs
1975, 1976, and 1977 were too lo and did nGt accutately reflect
comparable commercistrates. GSA's estimates for USDA& rental
charqes for FYS 1978;nd 1979 represent an increase of 13.6%
over FY 1977 charge%, and IV 1979 estimates represent a 7.7%
increase iin rental c~4es and a 2.9% increase in space ovC* F
1978. Because only a-boat one-third of buildings received new
rates for FY 1979, n% ,ot USDA's rental rates remaiaied the same
for FY 1979. Of 195 Ejce assignments examined, 61 had rates
different from 1978 raes with an average incre&se of about
3.5%. Previous probleap, gnvolving inaccurate billings were
eliminated. (HTW)](ViewImageLocal?handle=hein.gao/gaobaawpr0001&div=1&collection=&method=preview&ext=.png&size=3)