Federal Office Space

The General Services Administration (GSA) has not purchased any properties from the Resolution Trust Corporation (RTC) or the Federal Deposit Insurance Corporation (FDIC). It is trying to streamline its identification, consideration, and purchase of such properties, but progress has been slow. GSA has considered a few RTC properties on an ad hoc basis; tried unsuccessfully to get special sales concessions from RTC; obtained information on certain RTC properties in some locations where it has building ownership plans and started considering them; and explored with the Office of Management and Budget how prospective purchases of RTC, FDIC, and other commercially available properties could be financed. GSA has not yet, however, begun to identify and consider available FDIC properties. RTC and FDIC, as well as other sellers may have properties that could satisfy the government's needs cost-effectively. GSA's ability to purchase such properties, however, is encumbered by funding and budgetary limitations, its lack of a comprehensive strategic approach for meeting federal space needs, and its lack of discretionary building purchase authority.

GAO found that: (1) in June 1991, GSA proposed that RTC establish a formal working agreement with it to facilitate the identification, consideration, and purchase of available RTC properties; (2) RTC expressed concern regarding its ability to give GSA special concessions because of its fiduciary responsibilities, and proposed that it and GSA try a few sales before adopting a formal agreement; (3) in December 1991, RTC provided GSA with a list of potentially suitable properties; (4) as of January 1992, GSA had not purchased any RTC or FDIC properties and had been slow in identifying and considering potential properties; (5) GSA plans to consider available FDIC properties after it concentrates on available RTC properties; (6) GSA chose to concentrate on RTC properties first because RTC controls more commercial properties than FDIC and Congress directed GSA to coordinate with RTC; and (7) obstacles that could impede GSA ability to purchase properties held by RTC, FDIC, and other sellers include funding and budgetary limitations, a lack of a comprehensive strategic approach for meeting federal space needs, and a lack of GSA discretionary building purchase authority.