[Federal Register Volume 61, Number 201 (Wednesday, October 16, 1996)]
[Notices]
[Pages 53924-53925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26050]


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GENERAL SERVICES ADMINISTRATION

[GSA Bulletin FPMR D-239]


Delegation of Lease Acquisition Authority

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Notice of bulletin.

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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

[[Page 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