Liability of General Services Administration for Damage to Agency Property

The Deputy Assistant Secretary of Defense for Administration requested views concerning 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. GSA is not required to reimburse tenant agencies for damage to agency property caused by building failures or to lower standard level user charges by an amount equal to the liability insurance premium paid by commercial landlords. There is no basis for an exception to the general rule that one federal agency is not liable to another for property damages.