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LCD-80-18 1 (1979-11-07)

handle is hein.gao/gaobaazxs0001 and id is 1 raw text is: COMP~CLLKRG=NKRAL. OF T E UNITD STATES WASH INGTON. O.C_ B-17761 .. .RELEASED The Honorable Lucien N. Nedzi NOVEMBER 7,1979 Chairman, Subcommittee on Military Installations and Facilities 5 Commtee o mdServce House of Representatives Dear Mr. Chairman: Subject: Standard Level User Charges Assessed to the Department of Defense by the General Services Administration (LCD-80-18) This report is in response to your June 6, 1979, equas t concerning standard level user charges assessed to the Depart& c ment of Defense by the General Services Administration. You asked us to determine whether the objectives of Public Law 92-313 are being met and complied with and whether the Depart- ment is receiving equitable treatment. Our review was pri- marily concerned with (1) the computation of annual rental charges assessed the Department and (2) the reasonableness of those charges. As stated in our July 5, 1979, letter, we did not address those areas dealing with services paid for by the Department (reimbursables), overtime services, and level of cleaning service provided by General Services to the Depart- ment, since they are the subject of ongoing reviews. We will send you copies of the reports on these reviews when they are completed. Public Law 92-313, dated June 16, 1972, authorizes and directs General Services to charge agencies for the space they occupy and services rendered. The law states that the charges (rental payments) shall approximate commercial charges for comparable space and services. The law, however, does not contain any criteria or guidance for computing comparable commercial rates. The rents to be collected from all tenant agencies in fiscal year 1980 are estimated at $1.5 billion for about 277 million square feet of space, including parking, of which about $200 million will be collected from the Department for about 40 million square feet of space. These collections llii II llllhIl(945178) 110864$1

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