United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-06-05 monographic deposited born digital 16 p. GA 1.13:GAO-01-578R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-578R P0b002ee18038dd34 f:d01578r DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-578R machine generated eng fdlp REPORT GAOREPORTS-GAO-01-578R GAO-01-578R Contract award protests Real estate leases Interest groups Federal procurement Correspondence A01123

This report reviews the data, assumptions, and conclusions reached by the General Services Administration (GSA) and the Patent and Trademark Office (PTO) relating to the acquisition of about two million square feet of leased space for the consolidation of PTO activities. This build-to-suit lease, valued at approximately $1.2 billion over its 20-year term, was signed in June 2000. This objective of this report is to respond to allegations and questions from two public interest groups about the PTO lease acquisition. One public interest group alleged that during the procurement process for the lease (1) GSA improperly awarded the lease to an offeror who had not complied with the solicitation's stated requirements, (2) GSA failed to compete the construction of the interior finishes phase of the project as required by law, and (3) GSA used an illegal cost-plus-a-percentage-of-cost contract. The second public interest group asked (1) whether the requirements in GSA's Solicitation for Offers for the PTO lease transformed the lease from an operating lease to a capital lease under Office of Management and Budget (OMB) Circular A-11, (2) whether the new facility will be able to house all PTO employees and contractors throughout the lease term because the staff may grow, including whether this growth invalidates the potential cost savings from consolidation, (3) whether some of the standard requirements of the lease, such as a day care center and a fitness center, are essential to providing adequate office space for PTO, (4) whether the cost estimates for the tenant improvement allowance and furniture costs are excessive, and (5) whether constructing the PTO facility would have been less costly than leasing it. In response to the first public interest group's allegations, GAO found nothing improper in GSA's award of the lease for the PTO facility. In response to the questions from the second public interest group, GAO found that (1) GSA acted in accordance with OMB's and its own guidance in determining that the PTO lease was an operating lease, (2) it is currently unknown whether PTO's new space will meet all of its future housing needs, (3) features such as the day care and fitness centers are either authorized by law or governmentwide policy, (4) none of the available information indicated that the funding planned for tenant improvements was excessive, and the competitive procurement for the furniture was aimed at achieving the best value for the money, and (5) constructing a facility would have been less costly, however, it was not a viable option because funds for government ownership were not available at the time that GSA made its decision. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-578R/html/GAOREPORTS-GAO-01-578R.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-578R/pdf/GAOREPORTS-GAO-01-578R.pdf GAO-01-578R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-578R Correspondence GAO-01-578R; Acquisition of Leased Space for the U.S. Patent and Trademark Office; Contract award protests Real estate leases Interest groups Federal procurement Title 5 Section 7901 5 U.S.C. 7901 Title 18 Section 4124 18 U.S.C. 4124 Title 40 Section 490b Title 40 Section 601a 40 U.S.C. 490b 40 U.S.C. 601a Title 41 Section 254 41 U.S.C. 254