Liability of General Services Administration for Damage to Agency Property

The Department of Defense (DOD) requested a GAO opinion regarding the liability of the General Services Administration (GSA) for damage to the property of federal agencies which rent space in buildings owned or leased by GSA. GAO held that GSA was not required to reimburse tenant agencies for damage to agency property caused by building failures or to lower Standard Level User Charges by amount equal to liability insurance premium paid by commercial landlords. The general rule is that one federal agency is not liable to another for property damages. There is no basis in the Federal Property and Administrative Services Act or its legislative history to create an exception to this general rule where GSA serves as landlord.