General Services Administration's Practices in Awarding and Administering Leases Could Be Improved
LCD-77-354: Published: Jan 24, 1978. Publicly Released: Jan 24, 1978.
- Full Report:
The General Services Administration (GSA) leases 90.5 million square feet of space at an annual rent of about $400 million to accommodate federal departments and agencies. Commitments for current leases total about $2.1 billion.
Deficiencies were found in GSA practices for awarding leases. These deficiencies involved some of the major functions of GSA in acquiring leased space and included avoiding the requirement for congressional authorization of major leases, inconsistent methods of calculating rent for determining compliance with the Economy Act limitation, failure to determine compliance with the Economy Act limitation, limited competition obtained in acquiring leased space, inadequate consideration of some offers, leasing space not ready for occupancy, and leasing more space than required. GSA also negotiated uneconomical rental adjustments for government assumption of the utilities and services costs previously furnished by the lessors and for vacating leased space. The government was also paying for utilities used by commercial tenants in government-leased buildings.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Administrator of GSA should: (1) require periodic reviews of the leasing program to help ensure that existing procedures for obtaining congressional approval are met; (2) require review and clarification of procedures and forms used to determine compliance with the Economy Act and oversee and evaluate regional efforts periodically in carrying out the requirements of the act; (3) ensure that competition is obtained to the maximum practical extent for new leases and follow-on leases; (4) require adequate consideration of all offers during preaward evaluations and negotiations and solicitation of space within delineated geographical areas of sufficient size to allow more offerers to participate in solicitations; (5) ensure that alteration work is supervised and coordinated properly and alterations are completed by the occupancy date; (6) require reviews of pending lease actions to ensure that leased space to be acquired does not significantly exceed firm agency requirements; and (7) ensure that the government receives adequate rent reductions when leases are amended to provide for government assumption of utilities or services costs.