[Question Concerning Lease-Back Arrangement To Pay for Renovations to Detention Facility]

The Immigration and Naturalization Service (INS) requested an opinion regarding whether it could enter into a lease-back arrangement with a contractor in order to cover the cost of necessary renovations to a planned detention facility. INS noted that: (1) it wished to transfer the property to a contractor and lease it back from the contractor for the cost of the renovations; (2) its authorizing legislation conferred broad authority to acquire space for detention facilities; and (3) it was working with the General Services Administration (GSA) to facilitate the arrangement. GAO held that: (1) neither GSA nor INS had authority to transfer the property to a contractor because the property was not excess to the government's needs; (2) the INS authorizing legislation confers broad authority to acquire space for detention needs but not to dispose of space; and (3) INS should seek other funding to pay for the renovations. Accordingly, INS may not enter into a lease-back arrangement in order to pay for renovations to its planned detention facility.