Interpretation of Executive Order 12072

GAO was requested to rule on whether the General Services Administration (GSA) is correctly interpreting an Executive Order (EO) which requires that first consideration should be given to urban areas in the process of meeting the Government's needs for office space. Concern was expressed that GSA is carrying out the EO in a manner inconsistent with a statute requiring that the United States Department of Agriculture (USDA) utilize State, regional, district, county, local, or other USDA offices to enhance rural development. GAO did not object to the way in which GSA has interpreted the EO. The EO does not conflict with the statute because their definitions of urban and rural areas are not the same. GSA defines an urban area as any incorporated community with a population of 10,000 or more. The statute defines a rural area as any community with a population of less than 50,000 which is not immediately adjacent to a city with a population of 50,000 or more. When the two definitions are both used, a community with a population of between 10,000 and 50,000 may be considered to be urban by GSA for the purposes of the application of the EO, and rural as defined in the statute. Once it is determined that an agency has an urban space need, as defined in the EO, GSA requires the placement of Federal office space in the centralized business districts of those areas. USDA has more flexibility than other agencies about the location of its offices in rural areas and would be in a position to locate its offices in other than a centralized business district if it thought it was necessary to enhance rural development. Given the clientele which USDA deals with and its subject matter, the location of its offices in areas outside of the centralized business district would not be improper. A recently concluded agreement between GSA and USDA provides for locating USDA offices in central business areas whenever this is consistent with program requirements but in other areas whenever that would be are more suitable. This arrangement has resolved the conflict to the satisfaction of both agencies.