GSA Is Overcharging Some Federal Agencies for Protective Services

Under the law, the General Services Administratin (GSA) is directed to charge agencies rent for the space it provides, and the rental, or standard level user charges (SLUC), should approximate the commercial charges for comparable space and services. However, the law does not contain criteria or guidance for computing comparable commercial charges. Independent appraisers are contracted to estimate comparable commercial charges. While little guidance is given to the appraisers, they are told that the rates should reflect the SLUC, including cleaning, temperature control, illumination, and initial alterations. The form for recording assessments provides a space for including estimated security, or protection costs, but appraisers are not told whether, or at what level, protection services are to be included in estimating the rates. After receiving the appraisers' estimated fair annual rental rates, GSA adds anticipated inflation and a surcharge for guard and protection services to the beginning of the first fiscal year in which the rates are to be charged to the agencies.