[GSA Bulletin FPMR D-239] Delegation of Lease Acquisition Authority

AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Notice of bulletin.

SUMMARY: The attached bulletin announces the beginning of a new approach to
doing business in the General Services Administration (GSA) leasing program
called "Can't Beat GSA Leasing."

EFFECTIVE DATE: October 14, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. Marjorie L. Lomax, Director,
Evaluation and Outreach, Office of Real Property, Washington, DC 20405,
telephone 202-501-3476.

SUPPLEMENTARY INFORMATION:

Public Buildings and Space

Subject: Delegation of Lease Acquisition Authority

1. Purpose. This bulletin announces the beginning of a new approach to
doing business in the General Services Administration (GSA) leasing program
called "Can't Beat GSA Leasing." This program represents a change in
policy at GSA regarding the leasing of general purpose space and provides Federal agencies the option of using GSA or performing the space acquisition function themselves through a delegation of leasing authority.
The Administrator of General Services issued a letter on September 25, 1996, to the heads of all Federal agencies providing the delegation of leasing authority.

2. Expiration. This bulletin contains information of a continuing nature and will remain in effect until canceled.

3. Background.

a. The "Can't Beat GSA Leasing" program is an outgrowth of GSA's commitment to streamline its leasing operations. Under this new program, GSA is providing each Federal agency a simple choice. Either engage GSA to provide the most cost-effective and fastest service in the real estate market today or use the delegated leasing authority to perform
the space acquisition on their own.

b. GSA has taken this action to respond to the needs of a changing world in which Government must work faster, smarter, cheaper and better. GSA is committed to provide space so that Federal agencies can meet those needs.

c. GSA is committed to meet these challenges to work up to new standards of excellence. At the same time, GSA has listened carefully to recommendations from many client agencies and the Vice President's National Performance Review to open itself to competition.

d. Under "Can't Beat GSA Leasing," GSA has developed new strategies and retooled its entire leasing operation. GSA has refocused its energies on the needs of its customers. To cite just a few examples:

1. The Rent pricing structure is now clearer and more responsive to our
customers.

2. The Rent GSA will charge Federal agencies for leased space will be based
on GSA's rent plus a service fee comparable to that charged by private
sector agents.

3. GSA can now provide customized tenant allowances and flexibility in
payment alternatives for above standard items.

e. The most important change at GSA is the "can do" attitude of GSA's experienced, warranted real estate contracting officers. These highly motivated employees have been empowered to respond to the needs of Federal agencies with sound business practices that make sense.

f. GSA's leasing specialists will continue to follow all applicable statutory and regulatory requirements. These are the same requirements that Federal agencies will be expected to follow if they choose to lease space on their own or use other brokerage services.

4. Action.

a. Pursuant to the authority vested in the Administrator of General Services by subsections 205(d) and 210(h)(1) of the Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended, authority was delegated by the Administrator in his letter of September 25, 1996, to the heads of all Federal agencies to perform all functions related to the leasing of general purpose space for a term of up to 20 years regardless of geographic location. This delegation of authority does not alter the space delegations in sections 101-18.104-2 and -3 of the Federal Property Management Regulations, which pertain to "categorical" and "special purpose" space.

b. The "Can't Beat GSA Leasing" program will be effective October 14, 1996, and agencies will be able to use the delegated leasing authority subject to the following conditions:

1. Prior to instituting any action under this delegation, the head of a Federal agency or its designee shall notify the appropriate GSA, Assistant Regional Administrator for Public Buildings Federal Register  /  Vol. 61, No. 201  /  Wednesday, October 16, 1996  / 
Notices 53925

Service (ARA/PBS) of the agency's need for general purpose space and the agency's intent to exercise the authority granted in this delegation. The agency may exercise the authority contained in this delegation when the ARA/PBS determines that suitable Government- controlled space is not available to meet the space need of the Federal agency.

2. Relocation of Government employees from GSA-controlled federally owned or leased space may take place when prior written confirmation has been received from the appropriate ARA/PBS that suitable Government-controlled space cannot be provided for them.

3. A prospectus has been approved by the Congressional Committees pursuant to the Public Buildings Act of 1959 when the annual rental for the lease contract, excluding service and utilities, exceeds $1.74 million, as adjusted annually in accordance with 40 U.S.C. 606(f). In this circumstance GSA will prepare the prospectus in consultation with the agency.

4. Redelegation of the authority to lease may be made to those officers, officials, and employees who have been adequately trained as lease contracting officers.

5. Federal agencies must acquire and utilize the space in accordance with all applicable laws and regulations, including, but not limited to, the Competition in Contracting Act, Federal Property Management Regulations, Executive Order 12072, Executive Order
13006, Davis Bacon Act, and the General Services Administration Acquisition Regulation.

6. Agencies periodically provide GSA with leasing performance information. c. Further information regarding this program may be obtained by contacting Ms. Marjorie L. Lomax, Director, Evaluation and Outreach, Office of Real Property on (202) 501-0379.

Dated: October 3, 1996.

G. Martin Wagner,
Associate Administrator for Governmentwide Policy.
[FR Doc. 96-26050 Filed 10-15-96; 8:45 am]
BILLING CODE 6820-23-M