FCC Did Not Act in the Government's Best Interest in Acquiring Leased Space
PLRD-81-39
Published: Jun 26, 1981. Publicly Released: Jun 26, 1981.
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Highlights
GAO completed a review of five leases for office space which the Federal Communications Commission (FCC) negotiated under its independent leasing authority. GAO also reviewed the proposed terms and conditions of two additional leases which FCC had planned to enter into for consolidated office space. The FCC independent leasing authority is set to expire in September 1981, pending congressional action on the continuing resolution for its fiscal 1981 appropriation. In addition, FCC voted to defer action on the consolidated office space until the Senate confirmed the appointment of an FCC chairman.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Communications Commission | The FCC should, in any future acquisitions of leased space, follow the Federal procurement policies and procedures which GSA has implemented in its leasing program. This will encourage maximum competition and ensure acquisition of space to the best advantage of the Government. At a minimum the Commission should (1) prepare and issue a formal solicitation for offers setting forth space requirements and proposed lease terms and conditions; (2) include in all negotiations all standard contract clauses used by GSA to implement statutory requirements or to protect the Government's interests; (3) decline to accept lease provisions permitting annual escalation of base rent unless GSA accepts and implements such practices as standard Government policy; and (4) maintain in the lease files memoranda showing price and related negotiated lease terms and conditions. To ensure that these policies and practices are enforced, the FCC contracting officer should be fully involved in the leasing process, including solicitation for offers, negotiation of lease terms and rental rates, and contract award and administration. The FCC should not exceed its authority by entering into multi-year leases. |
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Topics
Cost analysisFederal office buildingsLeasing policiesProcurement policyProperty and supply managementLease agreementsFederal procurementBid proposalsFederal propertyReal property