[Federal Register: May 25, 2005 (Volume 70, Number 100)]
[Notices]
[Page 30115-30117]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25my05-116]
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GENERAL SERVICES ADMINISTRATION
[FMR Bulletin 2005-B1]
Delegations of Lease Acquisition Authority-Notification, Usage,
and Reporting Requirements for General Purpose, Categorical, and
Special Purpose Space Delegations
AGENCY: General Services Administration.
ACTION: Notice of Bulletin.
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SUMMARY: SUMMARY: It has been reported recently to Congressional
committees and the General Services Administration (GSA), Public
Buildings Service that some Federal agencies using the delegated
leasing authority issued to Federal agencies on September 25, 1996, as
part of the ``Can't Beat GSA Leasing'' program are not following
properly the instructions specified as a condition for use of the
leasing delegation. The attached bulletin reemphasizes and updates the
notification and reporting requirements specified in the delegation of
authority and its supporting information, GSA Bulletin FPMR D-239 and
GSA Bulletin FPMR D-239, Supplement 1, which are hereby canceled and
superseded by this bulletin. Additional reporting requirements for
categorical and special purpose space delegations are also
[[Page 30116]]
included. This bulletin is in keeping with the spirit of Executive
Order 13327, ``Federal Real Property Asset Management,'' in order to
maximize the increased Governmentwide emphasis on real property
inventory management. The FMR and any corresponding documents may be
accessed at GSA's website at http://www.gsa.gov/fmr. Click on FMR
Bulletins.
EFFECTIVE DATES: May 25, 2005.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Stanley C. Langfeld, General Services Administration, Office of Real
Property Management (MP), Washington, DC 20405;
stanley.langfeld@gsa.gov, (202) 501-1737. Please cite FMR Bulletin
2005-B1.
SUPPLEMENTARY INFORMATION: GSA Bulletin FPMR D-239, published in the
Federal Register October 16, 1996, announced a new GSA leasing program
called ``Can't Beat GSA Leasing'' and the delegation of lease
acquisition authority issued by the Administrator of General Services
to the heads of all Federal agencies in his letter of September 25,
1996. GSA Bulletin FPMR D-239, Supplement 1, published in the Federal
Register on December 18, 1996, issued supporting information for the
delegation.
There have been several instances reported of agencies failing to
meet the conditions required for use of the lease delegation:
1. Several agencies have failed to notify GSA prior to conducting a
specific leasing action,
2. Semi-annual performance reports on use of the lease delegation
are not being submitted to GSA on a regular basis, and
3. Some agencies have exceeded the authority of the delegation,
which is restricted to below prospectus level actions.
The following bulletin reemphasizes the above conditions, updates
outdated information and citations, and modifies certain reporting
requirements.
[FMR Bulletin 2005-B1]
To: Heads of Federal Agencies
Subject: Revised Implementation Requirements of the Delegation of
Lease Acquisition Authority.
1. Purpose. This bulletin reemphasizes and modifies certain
procedures associated with the use of the delegation of general purpose
leasing authority provided by GSA in 1996 as part of the leasing
program called ``Can't Beat GSA Leasing,'' and two other longstanding
delegations for categorical and agency-specific special purpose space
as currently provided in 41 CFR 102-73.
2. Expiration. This bulletin contains information of a continuing
nature and will remain in effect until canceled.
3. Background.
a. Agencies (without their own independent leasing authority) are
required to use one of the three types of blanket lease delegations
offered by GSA: 1) general purpose, 2) categorical, or 3) special
purpose. The ``Can't Beat GSA Leasing'' program, offering the general
purpose delegation, was an outgrowth of GSA's commitment to streamline
its leasing operations. Under this program, GSA provided each Federal
agency a simple choice: either engage GSA to provide the most cost-
effective and fastest service available, or use the leasing authority
to perform the space acquisition on its own. This bulletin emphasizes
the need for agencies to communicate with GSA prior to using the
general purpose delegation for each space action. This bulletin also
establishes that agencies are now required to submit semi-annual
reports on their use of any of the three types of blanket lease
delegations.
b. Executive Order No. 13327, ``Federal Real Property Asset
Management'' (69 F.R. 5897), dated February 4, 2004, promotes the
efficient and economical use of Federal real property resources. Among
other things, the Executive Order requires Federal agencies to
establish performance measures addressing the cost, value, and
efficiency of all acquisitions, within the scope of an overall agency
asset management plan. Agencies using any of the three GSA lease
delegations are expected to apply these measures to their acquisitions.
4. Action.
a. Pursuant to the authority vested in the Administrator of General
Services by subsections 121(d) and 585(a) of Title 40 of the United
States Code, in his letter of September 25, 1996, the Administrator
delegated authority 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. Lease procurements
using this delegation must be compatible with the GSA community housing
plans for new Federal construction or any suitable space that will
become available in Federally-controlled facilities. GSA will advise
the agency about any limiting factors (e.g. length of term) so that the
lease will be consistent with any community housing plans. This
delegation of authority does not alter the space delegation authorities
in 41 CFR 102-73 of the Federal Management Regulation, which pertain to
``categorical'' and ``special purpose'' space. It is also important to
emphasize that none of the GSA delegations provide authorization for
agencies to conduct procurements on behalf of or to collect rent from
other agencies.
b. General Purpose Delegation Notification Requirements. Prior to
instituting any new, succeeding, or superseding lease action under this
delegation, the head of a Federal agency or its designee shall notify
in writing the appropriate GSA, Assistant Regional Administrator for
Public Buildings 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 name of the contracting officer conducting the
procurement as well as a limited acquisition plan for the procurement
shall be included in the notice to GSA. The limited acquisition plan
must meet the requirements specified by General Services Administration
Acquisition Manual (GSAM), Part 507.1- Acquisition Plans. A sample
limited acquisition plan is available online at http://www.gsa.gov/leasingform.
The agency may exercise the authority contained in this
delegation only when the ARA/PBS notifies the requesting agency in
writing that suitable Federally-controlled space is not available to
meet its space need. If the agency subsequently decides not to exercise
the requested authority, it must provide written notice of such to the
ARA/PBS.
c. General Conditions for the use of General Purpose, Categorical,
and Special Purpose Delegations.
(1) 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.
(2) The average net annual rent (gross annual rent excluding
services and utilities) of any lease action executed under these
delegations must be below the prospectus threshold. The prospectus
threshold may be adjusted annually in accordance with 40 U.S.C.
3307(g). The current threshold for each fiscal year can be accessed by
entering GSA's website at http://www.gsa.gov and then inserting
``prospectus thresholds'' in the search mechanism in the upper right
hand corner of the page.
(3) Redelegation of the authority to lease may only be made to
those officers, officials, and employees fully meeting the experience
and training requirements of the contracting officer warrant program as
specified in section 501.603-1 of the GSAM.
[[Page 30117]]
(4) Federal agencies must acquire and utilize the space in
accordance with all applicable laws and regulations that apply to
Federal space acquisition activities, including, but not limited to,
the Competition in Contracting Act, the Federal Management Regulation,
Executive Order No. 12072, Executive Order No. 13006, Executive Order
No. 13327, the Davis-Bacon Act, OMB Circular A-11 (Scoring), and the
GSAM.
(5) Agencies are responsible for maintaining the capacity to
support all delegated leasing activities, including a warranted
contracting officer, legal review and oversight, construction and
inspection management, cost estimation, lease management and
administration, and program oversight. Prior to each leasing action,
the agency must conduct an assessment of its needs to establish
technical requirements and the amounts of space necessary to meet
mission requirements. Additionally, agencies are expected to acquire
space at charges consistent with prevailing market rates for comparable
facilities in the community. Accountability for all leasing activities
shall be coordinated through the agency's Senior Real Property Officer.
(6) GSA retains the right to assess, at any time, both the
integrity of each individual lease action as well as the capability of
an agency to perform all aspects of the delegated leasing activities
and, if necessary, to revoke an agency's delegation.
(7) The general purpose delegation requires agencies to provide GSA
with leasing performance information periodically. In addition, GSA is
now requiring agencies to provide lease performance information on
categorical and special purpose lease delegation actions. Accordingly,
agencies using any of the GSA lease delegations are hereafter required
to provide GSA with reports semi-annually on April 30 and October 31
that detail the leasing activities conducted under the delegations.
Reports should be sent to GSA, Office of Governmentwide Policy, Office
of Real Property Management (MP), 1800 F Street, N.W., Room 6203,
Washington, DC 20405. Reports may also be sent via e-mail to
real.property@gsa.gov. The reports should contain the following
information for each currently active and future lease executed under
the lease delegation:
(a) Agency/bureau name;
(b) Property Address--Street address, city and state of the leased
building;
(c) Rentable Square Feet (if applicable) --The area for which rent
is charged (based on the local commercial method of measurement;
(d) Annual Rental Rate per Square Foot--Divide the total annual
rent by the rentable square feet to obtain the annual rental rate;
(e) Type of Space--General purpose-office, storage, or special. If
categorical or special purpose, specify type;
(f) Effective Net Annual Rent--The effective net annual rent is
obtained by dividing the total rent (excluding services and utilities)
to be paid over the lease term (after adjusting for any rent-free
periods) by the number of years in the lease. Estimated CPI escalations
and tax escalations are not to be included in this calculation. Provide
total annual rent for categorical or special purpose space where
effective net annual rent cannot be calculated;
(g) Lease Term;
(h) Lease Expiration Date; and
(i) If the lease is for general purpose space, provide date of the
ARA/PBS notice stating that no suitable Federally-controlled space was
available to satisfy the space need.
(8) Agencies using the general purpose delegation are also required
to provide the following information to the GSA Regional Office from
which the delegation authorization was requested:
(a) Upon award, provide notification of the award date and location
of the property, including documentation that the negotiated rental
rate is within the prevailing market rental rate for the class of
building leased in the delegated action. The documentation may include
information from organizations such as SIOR, Black's Guide, Torto-
Wheaton, Co-Star, etc. If the negotiated rental rate exceeds the market
range, provide information as to why the market rate was exceeded; and
(b) Provide 18 months advance notice of lease expiration if there
is a continuing need for the space and the agency wishes to use the
delegation again to satisfy the requirement.
(9) Agencies using any of the GSA delegations are responsible for
observing the above rules and conditions. Improper use of the
delegations may result in revocation of the delegation.
d. Further information regarding this program may be obtained by
contacting the General Services Administration, Office of Real Property
Management on (202) 501-0856.
Dated: 12 May 2005.
G. Martin Wagner,
Associate Administrator for Governmentwide Policy.
[FR Doc. 05-10451 Filed 5-24-05; 8:45 am]