Proposed Temporary Regulation Covering the Leasing of Space by Executive Agencies

An opinion was requested on a proposed temporary regulation concerning the procurement of leased office space by executive agencies. Although the regulation recognizes that the leasing of space must be accomplished through formal advertising unless an exception to this requirement is applicable, the regulation is otherwise oriented to the use of negotiation procedures. GAO believed that the regulation should be revised to provide that no appropriation shall be obligated when either the rental of office space exceeds the per annum rate of 15 percent of the fair market value or when the cost of repairs exceeds 25 percent of the cost of rental.