Improvements Needed in Space Leasing Program

GAO evaluated the space leasing policies followed by General Services Administration (GSA) Region 10 in finding new sites for ACTION and Forest Service offices in Seattle. The relocation was one of the major moves accomplished by the region during 1980, and the approach used in this case was supposedly typical of the way the region leases space.

GAO believed that it was appropriate for GSA to attempt to obtain offers from other property owners and not attempt to automatically negotiate a new lease at the current agency location. However, GAO believed that the handling of the relocation demonstrated a need to for improvement in the region's space leasing program. Cost was given little consideration throughout the leasing process, and regional officials developed an unnecessarily restrictive solicitation package. They rejected the only initial offer received for questionable reasons. In addition, preferential treatment was given to two higher cost locations in subsequent sole-source negotiations. As a result, ACTION and the Forest Service were relocated to space costing about $160,000 a year more than necessary. ACTION officials believe that their new space is more luxurious and costly than warranted for their mission and clientele. They also said that the increased space cost diverted funds that would have been spent on operating programs and thus the move impaired their ability to perform their mission. Delay in initiating the lease action ultimately limited the options available to satisfy the space requirements. Colocation of the two agencies in the core of the central business areas was the only option solicited. Despite Federal Property Management Regulations which encourage consultation with local officials regarding Federal use of space in a community, Region 10 made no arrangement for consultation about specific GSA space acquisitions.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: James G. Mitchell Team: General Accounting Office: Procurement, Logistics, and Readiness Division Phone: (202) 275-4128