Lease-Construction Agreements by the General Services Administration

This decision is in response to a lease-construction agreement by the General Services Administration providing for the acquisition of facilities to accommodate the National Computer Center, Internal Revenue Service, Martinsburg, West Virginia. Authority for the Administrator of General Services to enter into lease agreements is contained in the Federal Property and Administrative Services Act of 1949. The Martinsburg lease agreement allows the Government to acquire title to the property for a consideration reducing to one dollar at the end of 20 years and a question arises as to the legality of such an agreement. Had the Government chosen to construct the facility through direct appropriation, the project herein described would have required approval by the Public Works Committee of Congress. Since the nature of the transaction and the terms of the lease indicate a determination to acquire a facility though a "lease-purchase" agreement, there is a question as to the authority for the transaction.