[Federal Register Volume 70, Number 100 (Wednesday, May 25, 2005)]
[Pages 30115-30117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10451]



[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.


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superseded by this bulletin.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 

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; 
[email protected], (202) 501-1737. Please cite FMR Bulletin 

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 
    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 

[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 
    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 
    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 
    (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 
[email protected]. 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 
    (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]