Federal Management Regulation; Real Property Policies Update, 67786-67860 [05-21644]

Agencies

• General Services Administration

[Federal Register Volume 70, Number 215 (Tuesday, November 8, 2005)]
[Rules and Regulations]
[Pages 67786-67860]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21644]



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Part II





General Services Administration





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41 CFR Parts 102-71, 102-72, et al;



Federal Management Regulation; Real Property Policies Update; Final 
Rule

Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / 
Rules and Regulations

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 102-71, 102-72, 102-73, 102-74, 102-75, 102-76, 102-
77, 102-78, 102-79, 102-80, 102-81, 102-82, and 102-83

[FMR Amendment 2005-03; FMR Case 2005-102-8]
RIN 3090-AI17


Federal Management Regulation; Real Property Policies Update

AGENCY: Office of Governmentwide Policy, General Services 
Administration (GSA).

ACTION: Final rule.

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SUMMARY: The General Services Administration is amending the Federal 
Management Regulation (FMR) to update the legal citations to conform to 
Public Law 107-217 and to incorporate additional policy guidance. 
Public Law 107-217, which was enacted on August 21, 2002, revised, 
restated, and recodified, without substantive change, certain laws 
related to public buildings, property, and works in Title 40 of the 
United States Code. Accordingly, this final rule cancels and replaces 
in its entirety FMR Amendment C-1 issued December 13, 2002. In addition 
to updating the legal citations, this final rule implements new 
accessibility standards for Federal facilities and provides additional 
real property policy coverage on the integrated workplace, sustainable 
development, outleasing, telework, siting antennas on Federal property, 
seismic safety, screening of excess real property, and the National 
Environmental Policy Act of 1969 (NEPA), as amended. The FMR and any 
corresponding documents may be accessed at GSA's Web site at https://
www.gsa.gov/fmr.

DATES: Effective Date: November 8, 2005.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC, 20405, (202) 208-7312, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Stanley C. Langfeld, Director, Regulations 
Management Division, Office of Governmentwide Policy, General Services 
Administration, at (202) 501-1737, or by e-mail at 
Stanley.langfeld@gsa.gov. Please cite FMR case 2005-102-8, Amendment 
2005-03.

SUPPLEMENTARY INFORMATION:

A. Background

    As part of GSA's regulatory improvement initiative, GSA published a 
final rule that created FMR parts 102-71 through 102-82 (41 CFR parts 
102-71 through 102-82), entitled ``Real Property Policies,'' in the 
Federal Register on January 18, 2001 (66 FR 5358). On December 13, 
2002, GSA published FMR Amendment C-1 as a final rule in the Federal 
Register (67 FR 76820), which completed the transfer of coverage on 
real property policies from the Federal Property Management Regulation 
(FPMR) to the FMR and created a separate part, FMR Part 102-83, to deal 
specifically with updated policy concerning the location of space. 
Also, on December 13, 2002, GSA published FPMR Amendment D-99 as a 
final rule in the Federal Register (67 FR 76882), which removed all 
real property policy coverage from the FPMR and provided cross-
references that directs readers to the coverage in the FMR.

B. Executive Order 12866

    The General Services Administration (GSA) has determined that this 
final rule is not a significant regulatory action for the purposes of 
Executive Order 12866.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for comment. Therefore, the Regulatory Flexibility Act does 
not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FMR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501 et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This final rule is exempt from Congressional review under 5 U.S.C. 
801 since it relates solely to agency management and personnel.

List of Subjects in 41 CFR Parts 102-71, 102-72, 102-73, 102-74, 
102-75, 102-76, 102-77, 102-78, 102-79, 102-80, 102-81, 102-82, and 
102-83

    Administrative practice and procedure, Blind, Concessions, Federal 
buildings and facilities, Fire prevention, Government property 
management, Homeless, Individuals with disabilities, Location of space, 
Occupational safety and health, Parking, Real property acquisition, 
Security measures, Surplus Government property, Utilities.

    Dated: August 24, 2005.
Stephen A. Perry,
Administrator of General Services.

0
For the reasons set forth in the preamble, GSA amends 41 CFR chapter 
102 as set forth below:

0
1. Revise part 102-71 to read as follows:

CHAPTER 102--FEDERAL MANAGEMENT REGULATION

SUBCHAPTER C--REAL PROPERTY

PART 102-71--GENERAL

Sec.
102-71.5 What is the scope and philosophy of the General Services 
Administration's (GSA) real property policies?
102-71.10 How are these policies organized?
102-71.15 [Reserved]
102-71.20 What definitions apply to GSA's real property policies?
102-71.25 Who must comply with GSA's real property policies?
102-71.30 How must these real property policies be implemented?
102-71.35 Are agencies allowed to deviate from GSA's real property 
policies?

    Authority:  40 U.S.C. 121(c).


Sec.  102-71.5  What is the scope and philosophy of the General 
Services Administration's (GSA) real property policies?

    GSA's real property policies contained in this part and parts 102-
72 through 102-82 of this chapter apply to Federal agencies, including 
GSA's Public Buildings Service (PBS), operating under, or subject to, 
the authorities of the Administrator of General Services. These 
policies cover the acquisition, management, utilization, and disposal 
of real property by Federal agencies that initiate and have decision-
making authority over actions for real property services. The detailed 
guidance implementing these policies is contained in separate customer 
service guides.


Sec.  102-71.10  How are these policies organized?

    GSA has divided its real property policies into the following 
functional areas:
    (a) Delegation of authority.
    (b) Real estate acquisition.
    (c) Facility management.
    (d) Real property disposal.
    (e) Design and construction.
    (f) Art-in-architecture.
    (g) Historic preservation.
    (h) Assignment and utilization of space.
    (i) Safety and environmental management.
    (j) Security.

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    (k) Utility services.
    (l) Location of space.


Sec.  102-71.15  [Reserved]


Sec.  102-71.20  What definitions apply to GSA's real property 
policies?

    The following definitions apply to GSA's real property policies:
    Airport means any area of land or water that is used, or intended 
for use, for the landing and takeoff of aircraft, and any appurtenant 
areas that are used, or intended for use, for airport buildings or 
other airport facilities or rights-of-way, together with all airport 
buildings and facilities located thereon.
    Alteration means remodeling, improving, extending, or making other 
changes to a facility, exclusive of maintenance repairs that are 
preventive in nature. The term includes planning, engineering, 
architectural work, and other similar actions.
    Carpool means a group of two or more people regularly using a motor 
vehicle for transportation to and from work on a continuing basis.
    Commercial activities, within the meaning of subpart D, part 102-74 
of this chapter, are activities undertaken for the primary purpose of 
producing a profit for the benefit of an individual or organization 
organized for profit. (Activities where commercial aspects are 
incidental to the primary purpose of expression of ideas or advocacy of 
causes are not commercial activities for purposes of this part.)
    Cultural activities include, but are not limited to, films, 
dramatics, dances, musical presentations, and fine art exhibits, 
whether or not these activities are intended to make a profit.
    Decontamination means the complete removal or destruction by 
flashing of explosive powders; the neutralizing and cleaning-out of 
acid and corrosive materials; the removal, destruction, or neutralizing 
of toxic, hazardous or infectious substances; and the complete removal 
and destruction by burning or detonation of live ammunition from 
contaminated areas and buildings.
    Designated Official is the highest ranking official of the primary 
occupant agency of a Federal facility, or, alternatively, a designee 
selected by mutual agreement of occupant agency officials.
    Disabled employee means an employee who has a severe, permanent 
impairment that for all practical purposes precludes the use of public 
transportation, or an employee who is unable to operate a car as a 
result of permanent impairment who is driven to work by another. 
Priority may require certification by an agency medical unit, including 
the Department of Veterans Affairs or the Public Health Service.
    Disposal agency means the Executive agency designated by the 
Administrator of General Services to dispose of surplus real or 
personal property.
    Educational activities mean activities such as (but not limited to) 
the operation of schools, libraries, day care centers, laboratories, 
and lecture or demonstration facilities.
    Emergency includes bombings and bomb threats, civil disturbances, 
fires, explosions, electrical failures, loss of water pressure, 
chemical and gas leaks, medical emergencies, hurricanes, tornadoes, 
floods, and earthquakes. The term does not apply to civil defense 
matters such as potential or actual enemy attacks that are addressed by 
the U.S. Department of Homeland Security.
    Executive means a Government employee with management 
responsibilities who, in the judgment of the employing agency head or 
his/her designee, requires preferential assignment of parking 
privileges.
    Executive agency means an Executive department specified in section 
101 of title 5; a military department specified in section 102 of such 
title; an independent establishment as defined in section 104(1) of 
such title; and a wholly owned Government corporation fully subject to 
the provisions of chapter 91 of title 31.
    Federal agency means any Executive agency or any establishment in 
the legislative or judicial branch of the Government (except the 
Senate, the House of Representatives, and the Architect of the Capitol 
and any activities under his or her direction).
    Federal agency buildings manager means the buildings manager 
employed by GSA or a Federal agency that has been delegated real 
property management and operation authority from GSA.
    Federal Government real property services provider means any 
Federal Government entity operating under, or subject to, the 
authorities of the Administrator of General Services that provides real 
property services to Federal agencies. This definition also includes 
private sector firms under contract with Federal agencies that deliver 
real property services to Federal agencies. This definition excludes 
any entity operating under, or subject to, authorities other than those 
of the Administrator of General Services.
    Flame-resistant means meeting performance standards as described by 
the National Fire Protection Association (NFPA Standard No. 701). 
Fabrics labeled with the Underwriters Laboratories Inc., classification 
marking for flammability are deemed to be flame resistant for purposes 
of this part.
    Foot-candle is the illumination on a surface one square foot in 
area on which there is a uniformly distributed flux of one lumen, or 
the illuminance produced on a surface all points of which are at a 
distance of one foot from a directionally uniform point source of one 
candela.
    GSA means the U.S. General Services Administration, acting by or 
through the Administrator of General Services, or a designated official 
to whom functions under this part have been delegated by the 
Administrator of General Services.
    Highest and best use means the most likely use to which a property 
can be put, which will produce the highest monetary return from the 
property, promote its maximum value, or serve a public or institutional 
purpose. The highest and best use determination must be based on the 
property's economic potential, qualitative values (social and 
environmental) inherent in the property itself, and other utilization 
factors controlling or directly affecting land use (e.g., zoning, 
physical characteristics, private and public uses in the vicinity, 
neighboring improvements, utility services, access, roads, location, 
and environmental and historical considerations). Projected highest and 
best use should not be remote, speculative, or conjectural.
    Indefinite quantity contract (commonly referred to as term 
contract) provides for the furnishing of an indefinite quantity, within 
stated limits, of specific property or services during a specified 
contract period, with deliveries to be scheduled by the timely 
placement of orders with the contractor by activities designated either 
specifically or by class.
    Industrial property means any real property and related personal 
property that has been used or that is suitable to be used for 
manufacturing, fabricating, or processing of products; mining 
operations; construction or repair of ships and other waterborne 
carriers; power transmission facilities; railroad facilities; and 
pipeline facilities for transporting petroleum or gas.
    Landholding agency means the Federal agency that has accountability 
for the property involved. For the purposes of this definition, 
accountability means that the Federal agency reports the real property 
on its financial statements and inventory records.
    Landing area means any land or combination of water and land, 
together with improvements thereon and necessary operational equipment 
used in connection therewith, which is used

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for landing, takeoff, and parking of aircraft. The term includes, but 
is not limited to, runways, strips, taxiways, and parking aprons.
    Life cycle cost is the total cost of owning, operating, and 
maintaining a building over its useful life, including its fuel and 
energy costs, determined on the basis of a systematic evaluation and 
comparison of alternative building systems; except that in the case of 
leased buildings, the life cycle cost shall be calculated over the 
effective remaining term of the lease.
    Limited combustible means rigid materials or assemblies that have 
fire hazard ratings not exceeding 25 for flame spread and 150 for smoke 
development when tested in accordance with the American Society for 
Testing and Materials, Test E 84, Surface Burning Characteristics of 
Building Materials.
    Maintenance, for the purposes of part 102-75, entitled ``Real 
Property Disposal,'' of this chapter, means the upkeep of property only 
to the extent necessary to offset serious deterioration; also such 
operation of utilities, including water supply and sewerage systems, 
heating, plumbing, and air-conditioning equipment, as may be necessary 
for fire protection, the needs of interim tenants, and personnel 
employed at the site, and the requirements for preserving certain types 
of equipment. For the purposes of part 102-74, entitled ``Facility 
Management,'' of this chapter, maintenance means preservation by 
inspection, adjustment, lubrication, cleaning, and the making of minor 
repairs. Ordinary maintenance means routine recurring work that is 
incidental to everyday operations; preventive maintenance means work 
programmed at scheduled intervals.
    Management means the safeguarding of the Government's interest in 
property, in an efficient and economical manner consistent with the 
best business practices.
    Nationally recognized standards encompasses any standard or 
modification thereof that--
    (1) Has been adopted and promulgated by a nationally recognized 
standards-producing organization under procedures whereby those 
interested and affected by it have reached substantial agreement on its 
adoption; or
    (2) Was formulated through consultation by appropriate Federal 
agencies in a manner that afforded an opportunity for diverse views to 
be considered.
    No commercial value means real property, including related personal 
property, which has no reasonable prospect of producing any disposal 
revenues.
    Nonprofit organization means an organization identified in 26 
U.S.C. 501(c).
    Normally furnished commercially means consistent with the level of 
services provided by a commercial building operator for space of 
comparable quality and housing tenants with comparable requirements. 
Service levels are based on the effort required to service space for a 
five-day week, one eight-hour shift schedule.
    Occupancy Emergency Organization means the emergency response 
organization comprised of employees of Federal agencies designated to 
perform the requirements established by the Occupant Emergency Plan.
    Occupant agency means an organization that is assigned space in a 
facility under GSA's custody and control.
    Occupant Emergency Plan means procedures developed to protect life 
and property in a specific federally occupied space under stipulated 
emergency conditions.
    Occupant Emergency Program means a short-term emergency response 
program. It establishes procedures for safeguarding lives and property 
during emergencies in particular facilities.
    Postal vehicle means a Government-owned vehicle used for the 
transportation of mail, or a privately owned vehicle used under 
contract with the U.S. Postal Service for the transportation of mail.
    Protection means the provisions of adequate measures for prevention 
and extinguishment of fires, special inspections to determine and 
eliminate fire and other hazards, and necessary guards to protect 
property against thievery, vandalism, and unauthorized entry.
    Public area means any area of a building under the control and 
custody of GSA that is ordinarily open to members of the public, 
including lobbies, courtyards, auditoriums, meeting rooms, and other 
such areas not assigned to a lessee or occupant agency.
    Public body means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, or any 
political subdivision, agency, or instrumentality of the foregoing.
    Public building means:
    (1) Any building that is suitable for office and/or storage space 
for the use of one or more Federal agencies or mixed-ownership 
corporations, such as Federal office buildings, post offices, 
customhouses, courthouses, border inspection facilities, warehouses, 
and any such building designated by the President. It also includes 
buildings of this sort that are acquired by the Federal Government 
under the Administrator's installment-purchase, lease-purchase, and 
purchase-contract authorities.
    (2) Public building does not include buildings:
    (i) On the public domain.
    (ii) In foreign countries.
    (iii) On Indian and native Eskimo properties held in trust by the 
United States.
    (iv) On lands used in connection with Federal programs for 
agricultural, recreational, and conservation purposes.
    (v) On or used in connection with river, harbor, flood control, 
reclamation or power projects, or for chemical manufacturing or 
development projects, or for nuclear production, research, or 
development projects.
    (vi) On or used in connection with housing and residential 
projects.
    (vii) On military installations.
    (viii) On Department of Veterans Affairs installations used for 
hospital or domiciliary purposes.
    (ix) Excluded by the President.
    Real property means:
    (1) Any interest in land, together with the improvements, 
structures, and fixtures located thereon (including prefabricated 
movable structures, such as Butler-type storage warehouses and Quonset 
huts, and house trailers with or without undercarriages), and 
appurtenances thereto, under the control of any Federal agency, 
except--
    (i) The public domain;
    (ii) Lands reserved or dedicated for national forest or national 
park purposes;
    (iii) Minerals in lands or portions of lands withdrawn or reserved 
from the public domain that the Secretary of the Interior determines 
are suitable for disposition under the public land mining and mineral 
leasing laws;
    (iv) Lands withdrawn or reserved from the public domain but not 
including lands or portions of lands so withdrawn or reserved that the 
Secretary of the Interior, with the concurrence of the Administrator of 
General Services, determines are not suitable for return to the public 
domain for disposition under the general public land laws because such 
lands are substantially changed in character by improvements or 
otherwise; and
    (v) Crops when designated by such agency for disposition by 
severance and removal from the land.
    (2) Improvements of any kind, structures, and fixtures under the 
control of any Federal agency when designated by such agency for

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disposition without the underlying land (including such as may be 
located on the public domain, on lands withdrawn or reserved from the 
public domain, on lands reserved or dedicated for national forest or 
national park purposes, or on lands that are not owned by the United 
States) excluding, however, prefabricated movable structures, such as 
Butler-type storage warehouses and Quonset huts, and house trailers 
(with or without undercarriages).
    (3) Standing timber and embedded gravel, sand, or stone under the 
control of any Federal agency, whether designated by such agency for 
disposition with the land or by severance and removal from the land, 
excluding timber felled, and gravel, sand, or stone excavated by or for 
the Government prior to disposition.
    Recognized labor organization means a labor organization recognized 
under title VII of the Civil Service Reform Act of 1978 (Pub. L. 95-
454), as amended, governing labor-management relations.
    Recreational activities include, but are not limited to, the 
operations of gymnasiums and related facilities.
    Regional Officer, within the meaning of part 102-74, subpart D of 
this chapter, means the Federal official designated to supervise the 
implementation of the occasional use provisions of 40 U.S.C. 581(h)(2). 
The Federal official may be an employee of GSA or a Federal agency that 
has delegated authority from GSA to supervise the implementation of the 
occasional use provisions of 40 U.S.C. 581(h)(2).
    Related personal property means any personal property--
    (1) That is an integral part of real property or is related to, 
designed for, or specially adapted to the functional or productive 
capacity of the real property and the removal of which would 
significantly diminish the economic value of the real property 
(normally common use items, including but not limited to general-
purpose furniture, utensils, office machines, office supplies, or 
general-purpose vehicles, are not considered to be related personal 
property); or
    (2) That is determined by the Administrator of General Services to 
be related to the real property.
    Repairs means those additions or changes that are necessary for the 
protection and maintenance of property to deter or prevent excessive or 
rapid deterioration or obsolescence, and to restore property damaged by 
storm, flood, fire, accident, or earthquake.
    Ridesharing means the sharing of the commute to and from work by 
two or more people, on a continuing basis, regardless of their 
relationship to each other, in any mode of transportation, including, 
but not limited to, carpools, vanpools, buspools, and mass transit.
    State means the fifty States, political subdivisions thereof, the 
District of Columbia, the Commonwealths of Puerto Rico and Guam, and 
the territories and possessions of the United States.
    Unit price agreement provides for the furnishing of an indefinite 
quantity, within stated limits, of specific property or services at a 
specified price, during a specified contract period, with deliveries to 
be scheduled by the timely placement of orders upon the lessor by 
activities designated either specifically or by class.
    Unusual hours means work hours that are frequently required to be 
varied and do not coincide with any regular work schedule. This 
category includes time worked by individuals who regularly or 
frequently work significantly more than 8 hours per day. Unusual hours 
does not include time worked by shift workers, by those on alternate 
work schedules, and by those granted exceptions to the normal work 
schedule (e.g., flex-time).
    Upon approval from GSA means when an agency either has a delegation 
of authority document from the Administrator of General Services or 
written approval from the Administrator or his/her designee before 
proceeding with a specified action.
    Vanpool means a group of at least 8 persons using a passenger van 
or a commuter bus designed to carry 10 or more passengers. Such a 
vehicle must be used for transportation to and from work in a single 
daily round trip.
    Zonal allocations means the allocation of parking spaces on the 
basis of zones established by GSA in conjunction with occupant 
agencies. In metropolitan areas where this method is used, all agencies 
located in a designated zone will compete for available parking in 
accordance with instructions issued by GSA. In establishing this 
procedure, GSA will consult with all affected agencies.


Sec.  102-71.25  Who must comply with GSA's real property policies?

    Federal agencies operating under, or subject to, the authorities of 
the Administrator of General Services must comply with these policies.


Sec.  102-71.30  How must these real property policies be implemented?

    Each Federal Government real property services provider must 
provide services that are in accord with the policies presented in 
parts 102-71 through 102-82 of this chapter. Also, Federal agencies 
must make the provisions of any contract with private sector real 
property services providers conform to the policies in parts 102-71 
through 102-82 of this chapter.


Sec.  102-71.35  Are agencies allowed to deviate from GSA's real 
property policies?

    Yes, see Sec. Sec.  102-2.60 through 102-2.110 of this chapter to 
request a deviation from the requirements of these real property 
policies.

0
2. Revise part 102-72 to read as follows:

PART 102-72--DELEGATION OF AUTHORITY

Subpart A--General Provisions

Sec.
102-72.5 What is the scope of this part?
102-72.10 What basic policy governs delegation of authority to 
Federal agencies?
Subpart B--Delegation of Authority
102-72.15 What criteria must a delegation meet?
102-72.20 Are there limitations on this delegation of authority?
102-72.25 What are the different types of delegations of authority?
102-72.30 What are the different types of delegations related to 
real estate leasing?
102-72.35 What are the requirements for obtaining an Administrative 
Contracting Officer (ACO) delegation from GSA?
102-72.40 What are facility management delegations?
102-72.45 What are the different types of delegations related to 
facility management?
102-72.50 What are Executive agencies' responsibilities under a 
delegation of real property management and operation authority from 
GSA?
102-72.55 What are the requirements for obtaining a delegation of 
real property management and operation authority from GSA?
102-72.60 What are Executive agencies' responsibilities under a 
delegation of individual repair and alteration project authority 
from GSA?
102-72.65 What are the requirements for obtaining a delegation of 
individual repair and alteration project authority from GSA?
102-72.70 What are Executive agencies' responsibilities under a 
delegation of lease management authority (contracting officer 
representative authority) from GSA?
102-72.75 What are the requirements for obtaining a delegation of 
lease management authority (contracting officer representative 
authority) from GSA?
102-72.80 What are Executive agencies' responsibilities under a 
disposal of real property delegation of authority from GSA?
102-72.85 What are the requirements for obtaining a disposal of real 
property delegation of authority from GSA?


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102-72.90 What are Executive agencies' responsibilities under a 
security delegation of authority from GSA?
102-72.95 What are the requirements for obtaining a security 
delegation of authority from GSA?
102-72.100 What are Executive agencies' responsibilities under a 
utility service delegation of authority from GSA?
102-72.105 What are the requirements for obtaining a utility 
services delegation of authority from GSA?

    Authority: 40 U.S.C. 121(c), (d) and (e).

Subpart A--General Provisions


Sec.  102-72.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including GSA's Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.


Sec.  102-72.10  What basic policy governs delegation of authority to 
Federal agencies?

    The Administrator of General Services may delegate and may 
authorize successive redelegations of the real property authority 
vested in the Administrator to any Federal agency.

Subpart B--Delegation of Authority


Sec.  102-72.15  What criteria must a delegation meet?

    Delegations must be in the Government's best interest, which means 
that GSA must evaluate such factors as whether a delegation would be 
cost effective for the Government in the delivery of space.


Sec.  102-72.20  Are there limitations on this delegation of authority?

    Federal agencies must exercise delegated real property authority 
and functions according to the parameters described in each delegation 
of authority document, and Federal agencies may only exercise the 
authority of the Administrator that is specifically provided within the 
delegation of authority document.


Sec.  102-72.25  What are the different types of delegations of 
authority?

    The basic types of GSA Delegations of Authority are--
    (a) Delegation of Leasing Authority;
    (b) Delegation of Real Property Management and Operation Authority;
    (c) Delegation of Individual Repair and Alteration Project 
Authority;
    (d) Delegation of Lease Management Authority (Contracting Office 
Representative Authority);
    (e) Delegation of Administrative Contracting Officer (ACO) 
Authority;
    (f) Delegation of Real Property Disposal Authority;
    (g) Security Delegation of Authority; and
    (h) Utility Services Delegation of Authority.


Sec.  102-72.30  What are the different types of delegations related to 
real estate leasing?

    Delegations related to real estate leasing include the following:
    (a) Categorical space delegations and agency special purpose space 
delegations (see Sec.  102-73.140 of this title).
    (b) The Administrator of General Services has issued a standing 
delegation of authority (under a program known as ``Can't Beat GSA 
Leasing'') to the heads of all Federal agencies to accomplish all 
functions relating to leasing of general purpose space for terms of up 
to 20 years and below prospectus level requirements, regardless of 
geographic location. This delegation includes some conditions Federal 
agencies must meet when conducting the procurement themselves, such as 
training in lease contracting and reporting data to GSA.
    (c) An ACO delegation, in addition to lease management authority, 
provides Federal agencies with limited contracting officer authority to 
perform such duties as paying and withholding lessor rent and modifying 
lease provisions that do not change the lease term length or the amount 
of space under lease.


Sec.  102-72.35  What are the requirements for obtaining an 
Administrative Contracting Officer (ACO) delegation from GSA?

    When Federal agencies do not exercise the delegation of authority 
for general purpose space mentioned in Sec.  102-72.30(b) of this part, 
GSA may consider granting an ACO delegation when Federal agencies--
    (a) Occupy at least 90 percent of the building's GSA-controlled 
space, or Federal agencies have the written concurrence of 100 percent 
of rent-paying occupants covered under the lease; and
    (b) Have the technical capability to perform the leasing function.


Sec.  102-72.40  What are facility management delegations?

    Facility management delegations give Executive agencies authority 
to operate and manage buildings day to day, to perform individual 
repair and alteration projects, and manage real property leases.


Sec.  102-72.45  What are the different types of delegations related to 
facility management?

    The principal types of delegations involved in the management of 
facilities are--
    (a) Real property management and operation authority;
    (b) Individual repair and alteration project authority; and
    (c) Lease management authority (contracting officer representative 
authority).


Sec.  102-72.50  What are Executive agencies' responsibilities under a 
delegation of real property management and operation authority from 
GSA?

    With this delegation, Executive agencies have the authority to 
operate and manage buildings day to day. Delegated functions may 
include building operations, maintenance, recurring repairs, minor 
alterations, historic preservation, concessions, and energy management 
of specified buildings subject to the conditions in the delegation 
document.


Sec.  102-72.55  What are the requirements for obtaining a delegation 
of real property management and operation authority from GSA?

    An Executive agency may be delegated real property management and 
operation authority when it--
    (a) Occupies at least 90 percent of the space in the Government-
controlled facility, or has the concurrence of 100 percent of the rent-
paying occupants to perform these functions; and
    (b) Demonstrates that it can perform the delegated real property 
management and operation responsibilities.


Sec.  102-72.60  What are Executive agencies' responsibilities under a 
delegation of individual repair and alteration project authority from 
GSA?

    With this delegation of authority, Executive agencies have the 
responsibility to perform individual repair and alterations projects. 
Executive agencies are delegated repair and alterations authority for 
reimbursable space alteration projects up to the simplified acquisition 
threshold, as specified in the GSA Customer Guide to Real Property.


Sec.  102-72.65  What are the requirements for obtaining a delegation 
of individual repair and alteration project authority from GSA?

    Executive agencies may be delegated repair and alterations 
authority for other individual alteration projects when they 
demonstrate the ability to perform the delegated repair and alterations 
responsibilities and when such a delegation promotes efficiency and 
economy.

[[Page 67791]]

Sec.  102-72.70  What are Executive agencies' responsibilities under a 
delegation of lease management authority (contracting officer 
representative authority) from GSA?

    When an Executive agency does not exercise the delegation of 
authority mentioned in Sec.  102-72.30(b) to lease general purpose 
space itself, it may be delegated, upon request, lease management 
authority to manage the administration of one or more lease contracts 
awarded by GSA.


Sec.  102-72.75  What are the requirements for obtaining a delegation 
of lease management authority (contracting officer representative 
authority) from GSA?

    An Executive agency may be delegated lease management authority 
when it--
    (a) Occupies at least 90 percent of the building's GSA-controlled 
space or has the written concurrence of 100 percent of rent-paying 
occupants covered under the lease to perform this function; and
    (b) Demonstrates the ability to perform the delegated lease 
management responsibilities.


Sec.  102-72.80  What are Executive agencies' responsibilities under a 
disposal of real property delegation of authority from GSA?

    With this delegation, Executive agencies have the authority to 
utilize and dispose of excess or surplus real and related personal 
property and to grant approvals and make determinations, subject to the 
conditions in the delegation document.


Sec.  102-72.85  What are the requirements for obtaining a disposal of 
real property delegation of authority from GSA?

    While disposal delegations to Executive agencies are infrequent, 
GSA may delegate authority to them based on situations involving 
certain low-value properties and when they can demonstrate that they 
have the technical expertise to perform the disposition functions. GSA 
may grant special delegations of authority to Executive agencies for 
the utilization and disposal of certain real property through the 
procedures set forth in part 102-75, subpart F of this chapter.


Sec.  102-72.90  What are Executive agencies' responsibilities under a 
security delegation of authority from GSA?

    Law enforcement and related security functions were transferred to 
the Department of Homeland Security upon its establishment in 2002. The 
Homeland Security Act authorizes the Secretary of Homeland Security, in 
consultation with the Administrator of General Services, to issue 
regulations necessary for the protection and administration of property 
owned or occupied by the Federal Government and persons on the 
property. Notwithstanding the foregoing, GSA retained all powers, 
functions and authorities necessary for the operation, maintenance, and 
protection of buildings and grounds owned and occupied by the Federal 
Government and under the jurisdiction, custody, or control of GSA.


Sec.  102-72.95  What are the requirements for obtaining a security 
delegation of authority from GSA?

    An Executive agency may request a security delegation from GSA by 
submitting a written request with the detailed basis for the requested 
delegation to the Assistant Regional Administrator, PBS, in the region 
where the building is located. A request for multiple buildings in 
multiple regions should be directed to the Commissioner of PBS. The 
delegation may be granted where the requesting agency demonstrates a 
compelling need for the delegated authority and the delegation is not 
inconsistent with the authorities of any other law enforcement agency.


Sec.  102-72.100  What are Executive agencies' responsibilities under a 
utility service delegation of authority from GSA?

    With this delegation, Executive agencies have the authority to 
negotiate and execute utility services contracts for periods over one 
year but not exceeding ten years for their use and benefit. Agencies 
also have the authority to intervene in utility rate proceedings to 
represent the consumer interests of the Federal Government, if so 
provided in the delegation of authority.


Sec.  102-72.105  What are the requirements for obtaining a utility 
services delegation of authority from GSA?

    Executive agencies may be delegated utility services authority when 
they have the technical expertise and adequate staffing.

0
3. Revise part 102-73 to read as follows:

PART 102-73--REAL ESTATE ACQUISITION

Subpart A--General Provisions
Sec.
102-73.5 What is the scope of this part?
102-73.10 What is the basic real estate acquisition policy?
102-73.15 What real estate acquisition and related services may 
Federal agencies provide?

United States Postal Service-Controlled Space

102-73.20 Are Federal agencies required to give priority 
consideration to space in buildings under the custody and control of 
the United States Postal Service in fulfilling Federal agency space 
needs?

Locating Federal Facilities

102-73.25 What policies must Executive agencies comply with in 
locating Federal facilities?

Historic Preservation

102-73.30 What historic preservation provisions must Federal 
agencies comply with prior to acquiring, constructing, or leasing 
space?

Prospectus Requirements

102-73.35 Is a prospectus required for all acquisition, 
construction, or alteration projects?
102-73.40 What happens if the dollar value of the project exceeds 
the prospectus threshold?
Subpart B--Acquisition by Lease
102-73.45 When may Federal agencies consider leases of privately 
owned land and buildings to satisfy their space needs?
102-73.50 Are Federal agencies that possess independent statutory 
authority to acquire leased space subject to requirements of this 
part?
102-73.55 On what basis must Federal agencies acquire leases?
102-73.60 With whom may Federal agencies enter into lease 
agreements?
102-73.65 Are there any limitations on leasing certain types of 
space?
102-73.70 Are Executive agencies required to acquire leased space by 
negotiation?
102-73.75 What functions must Federal agencies perform with regard 
to leasing building space?
102-73.80 Who is authorized to contact lessors, offerors, or 
potential offerors concerning space leased or to be leased?
102-73.85 Can agencies with independent statutory authority to lease 
space have GSA perform the leasing functions?
102-73.90 What contingent fee policy must Federal agencies apply to 
the acquisition of real property by lease?
102-73.95 How are Federal agencies required to assist GSA?

Competition in Contracting Act of 1984

102-73.100 Is the Competition in Contracting Act of 1984, as amended 
(CICA), applicable to lease acquisition?

National Environmental Policy Act of 1969 (NEPA)

102-73.105 What policies must Federal agencies follow to implement 
the requirements of NEPA when acquiring real property by lease?

Lease Construction

102-73.110 What rules must Executive agencies follow when acquiring 
leasehold interests in buildings constructed for Federal Government 
use?

Price Preference for Historic Properties

102-73.115 Must Federal agencies offer a price preference to space 
in historic properties when acquiring leased space?
102-73.120 How much of a price preference must Federal agencies give 
when acquiring leased space using the lowest

[[Page 67792]]

price technically acceptable source selection process?
102-73.125 How much of a price preference must Federal agencies give 
when acquiring leased space using the best value tradeoff source 
selection process?

Leases With Purchase Options

102-73.130 When may Federal agencies consider acquiring leases with 
purchase options?

Scoring Rules

102-73.135 What scoring rules must Federal agencies follow when 
considering leases and leases with purchase options?

Delegations of Leasing Authority

102-73.140 When may agencies that do not possess independent leasing 
authority lease space?

Categorical Space Delegations

102-73.145 What is a categorical space delegation?
102-73.150 What is the policy for categorical space delegations?
102-73.155 What types of space can Federal agencies acquire with a 
categorical space delegation?

Special Purpose Space Delegations

102-73.160 What is an agency special purpose space delegation?
102-73.165 What is the policy for agency special purpose space 
delegations?
102-73.170 What types of special purpose space may the Department of 
Agriculture lease?
102-73.175 What types of special purpose space may the Department of 
Commerce lease?
102-73.180 What types of special purpose space may the Department of 
Defense lease?
102-73.185 What types of special purpose space may the Department of 
Energy lease?
102-73.190 What types of special purpose space may the Federal 
Communications Commission lease?
102-73.195 What types of special purpose space may the Department of 
Health and Human Services lease?
102-73.196 What types of special purpose space may the Department of 
Homeland Security lease?
102-73.200 What types of special purpose space may the Department of 
the Interior lease?
102-73.205 What types of special purpose space may the Department of 
Justice lease?
102-73.210 What types of special purpose space may the Office of 
Thrift Supervision lease?
102-73.215 What types of special purpose space may the Department of 
Transportation lease?
102-73.220 What types of special purpose space may the Department of 
the Treasury lease?
102-73.225 What types of special purpose space may the Department of 
Veterans Affairs lease?

Limitations on the Use of Delegated Authority

102-73.230 When must Federal agencies submit a prospectus to lease 
real property?
102-73.235 What is the maximum lease term that a Federal agency may 
agree to when it has been delegated lease acquisition authority from 
GSA?
102-73.240 What policy must Federal agencies follow to acquire 
official parking spaces?
Subpart C--Acquisition by Purchase or Condemnation

Buildings

102-73.245 When may Federal agencies consider purchase of buildings?
102-73.250 Are agencies required to adhere to the policies for 
locating Federal facilities when purchasing buildings?
102-73.255 What factors must Executive agencies consider when 
purchasing sites?

Land

102-73.260 What land acquisition policy must Federal agencies 
follow?
102-73.265 What actions must Federal agencies take to facilitate 
land acquisition?

Just Compensation

102-73.270 Are Federal agencies required to provide the owner with a 
written statement of the amount established as just compensation?
102-73.275 What specific information must be included in the summary 
statement for the owner that explains the basis for just 
compensation?
102-73.280 Where can Federal agencies find guidance on how to 
appraise the value of properties being acquired by the Federal 
Government?
102-73.285 [Reserved]
102-73.290 Are there any prohibitions when a Federal agency pays 
``just compensation'' to a tenant?

Expenses Incidental to Property Transfer

102-73.295 What property transfer expenses must Federal agencies 
cover when acquiring real property?

Litigation Expenses

102-73.300 Are Federal agencies required to pay for litigation 
expenses incurred by a property owner because of a condemnation 
proceeding?

Relocation Assistance Policy

102-73.305 What relocation assistance policy must Federal agencies 
follow?

    Authority: 40 U.S.C. 121(c); Sec. 3(c), Reorganization Plan No. 
18 of 1950 (40 U.S.C. 301 note); Sec. 1-201(b), E.O. 12072, 43 FR 
36869, 3 CFR, 1978 Comp., p. 213.

Subpart A--General Provisions


Sec.  102-73.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including GSA's Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.


Sec.  102-73.10  What is the basic real estate acquisition policy?

    When seeking to acquire space, Federal agencies should first seek 
space in Government-owned and Government-leased buildings. If suitable 
Government-controlled space is unavailable, Federal agencies must 
acquire real estate and related services in an efficient and cost 
effective manner.


Sec.  102-73.15  What real estate acquisition and related services may 
Federal agencies provide?

    Federal agencies, upon approval from GSA, may provide real estate 
acquisition and related services, including leasing (with or without 
purchase options), building and/or site purchase, condemnation, and 
relocation assistance. For information on the design and construction 
of Federal facilities, see part 102-76 of this chapter.

United States Postal Service-Controlled Space


Sec.  102-73.20  Are Federal agencies required to give priority 
consideration to space in buildings under the custody and control of 
the United States Postal Service in fulfilling Federal agency space 
needs?

    Yes, after considering the availability of GSA-controlled space and 
determining that no such space is available to meet its needs, Federal 
agencies must extend priority consideration to available space in 
buildings under the custody and control of the United States Postal 
Service (USPS) in fulfilling Federal agency space needs, as specified 
in the ``Agreement Between General Services Administration and the 
United States Postal Service Covering Real and Personal Property 
Relationships and Associated Services,'' dated July 1985.

Locating Federal Facilities


Sec.  102-73.25  What policies must Executive agencies comply with in 
locating Federal facilities?

    Executive agencies must comply with the location policies in this 
part and part 102-83 of this chapter.

Historic Preservation


Sec.  102-73.30  What historic preservation provisions must Federal 
agencies comply with prior to acquiring, constructing, or leasing 
space?

    Prior to acquiring, constructing, or leasing space, Federal 
agencies must comply with the provisions of section

[[Page 67793]]

110(a) of the National Historic Preservation Act of 1966, as amended 
(16 U.S.C. 470h-2(a)), regarding the use of historic properties. 
Federal agencies can find guidance on protecting, enhancing, and 
preserving historic and cultural property in part 102-78 of this 
chapter.

Prospectus Requirements


Sec.  102-73.35  Is a prospectus required for all acquisition, 
construction, or alteration projects?

    No, a prospectus is not required if the dollar value of a project 
does not exceed the prospectus threshold. 40 U.S.C. 3307 establishes a 
prospectus threshold, applicable to Federal agencies operating under, 
or subject to, the authorities of the Administrator of General 
Services, for the construction, alteration, purchase, and acquisition 
of any building to be used as a public building, and establishes a 
prospectus threshold to lease any space for use for public purposes. 
The current prospectus threshold value for each fiscal year can be 
accessed by entering GSA's Web site at https://www.gsa.gov and then 
inserting ``prospectus thresholds'' in the search mechanism in the 
upper right-hand corner of the page.


Sec.  102-73.40  What happens if the dollar value of the project 
exceeds the prospectus threshold?

    Projects require approval by the Senate and the House of 
Representatives if the dollar value of a project exceeds the prospectus 
threshold. To obtain this approval, the Administrator of General 
Services will transmit the proposed prospectuses to Congress for 
consideration by the Senate and the House of Representatives. 
Furthermore, as indicated in Sec.  102-72.30(b), the general purpose 
lease delegation authority is restricted to below the prospectus 
threshold, and therefore, GSA must conduct all lease acquisitions over 
the threshold.

Subpart B--Acquisition by Lease


Sec.  102-73.45  When may Federal agencies consider leases of privately 
owned land and buildings to satisfy their space needs?

    Federal agencies may consider leases of privately owned land and 
buildings only when needs cannot be met satisfactorily in Government-
controlled space and one or more of the following conditions exist:
    (a) Leasing is more advantageous to the Government than 
constructing a new building, or more advantageous than altering an 
existing Federal building.
    (b) New construction or alteration is unwarranted because demand 
for space in the community is insufficient, or is indefinite in scope 
or duration.
    (c) Federal agencies cannot provide for the completion of a new 
building within a reasonable time.


Sec.  102-73.50  Are Federal agencies that possess independent 
statutory authority to acquire leased space subject to requirements of 
this part?

    No, Federal agencies possessing independent statutory authority to 
acquire leased space are not subject to GSA authority and, therefore, 
may not be subject to the requirements of this part. However, lease 
prospectus approval requirements of 40 U.S.C. Section 3307 may still 
apply appropriations to lease of space for public purposes under an 
agency's independent leasing authority.


Sec.  102-73.55  On what basis must Federal agencies acquire leases?

    Federal agencies must acquire leases on the most favorable basis to 
the Federal Government, with due consideration to maintenance and 
operational efficiency, and at charges consistent with prevailing 
market rates for comparable facilities in the community.


Sec.  102-73.60  With whom may Federal agencies enter into lease 
agreements?

    Federal agencies, upon approval from GSA, may enter into lease 
agreements with any person, partnership, corporation, or other public 
or private entity, provided that such lease agreements do not bind the 
Government for periods in excess of twenty years (40 U.S.C. 585(a)). 
Federal agencies may not enter into lease agreements with persons who 
are barred from contracting with the Federal Government (e.g., Members 
of Congress or debarred or suspended contractors).


Sec.  102-73.65  Are there any limitations on leasing certain types of 
space?

    Yes, the limitations on leasing certain types of space are as 
follows:
    (a) In general, Federal agencies may not lease any space to 
accommodate computer and telecommunications operations; secure or 
sensitive activities related to the national defense or security; or a 
permanent courtroom, judicial chamber, or administrative office for any 
United States court, if the average annual net rental cost of leasing 
such space would exceed the prospectus threshold (40 U.S.C. 
3307(f)(1)).
    (b) However, Federal agencies may lease such space if the 
Administrator of General Services first determines that leasing such 
space is necessary to meet requirements that cannot be met in public 
buildings, and then submits such determination to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives in 
accordance with 40 U.S.C. 3307(f)(2).


Sec.  102-73.70  Are Executive agencies required to acquire leased 
space by negotiation?

    Yes, Executive agencies must acquire leased space by negotiation, 
except where the sealed bid procedure is required by the Competition in 
Contracting Act, as amended (CICA) (41 U.S.C. 253(a)).


Sec.  102-73.75  What functions must Federal agencies perform with 
regard to leasing building space?

    Federal agencies, upon approval from GSA, must perform all 
functions of leasing building space, and land incidental thereto, for 
their use except as provided in this subpart.


Sec.  102-73.80  Who is authorized to contact lessor, offerors, or 
potential offerors concerning space leased or to be leased?

    No one, except the Contracting Officer or his or her designee, may 
contact lessors, offerors, or potential offerors concerning space 
leased or to be leased for the purpose of making oral or written 
representation or commitments or agreements with respect to the terms 
of occupancy of particular space, tenant improvements, alterations and 
repairs, or payment for overtime services.


Sec.  102-73.85  Can agencies with independent statutory authority to 
lease space have GSA perform the leasing functions?

    Yes, upon request, GSA may perform, on a reimbursable basis, all 
functions of leasing building space, and land incidental thereto, for 
Federal agencies possessing independent statutory authority to lease 
space. However, GSA reserves the right to accept or reject reimbursable 
leasing service requests on a case-by-case basis.


Sec.  102-73.90  What contingent fee policy must Federal agencies apply 
to the acquisition of real property by lease?

    Federal agencies must apply the contingent fee policies in 48 CFR 
3.4 to all negotiated and sealed bid contracts for the acquisition of 
real property by lease. Federal agencies must appropriately adapt the 
representations and covenants required by that subpart for use in 
leases of real property for Government use.


Sec.  102-73.95  How are Federal agencies required to assist GSA?

    The heads of Federal agencies must--

[[Page 67794]]

    (a) Cooperate with and assist the Administrator of General Services 
in carrying out his responsibilities respecting office buildings and 
space;
    (b) Take measures to give GSA early notice of new or changing space 
requirements;
    (c) Seek to economize their requirements for space; and
    (d) Continuously review their needs for space in and near the 
District of Columbia, taking into account the feasibility of 
decentralizing services or activities that can be carried on elsewhere 
without excessive costs or significant loss of efficiency.

Competition in Contracting Act of 1984


Sec.  102-73.100  Is the Competition in Contracting Act of 1984, as 
amended (CICA), applicable to lease acquisition?

    Yes, Executive agencies must obtain full and open competition among 
suitable locations meeting minimum Government requirements, except as 
otherwise provided by CICA, 41 U.S.C. 253.

National Environmental Policy Act of 1969 (NEPA)


Sec.  102-73.105  What policies must Federal agencies follow to 
implement the requirements of NEPA when acquiring real property by 
lease?

    Federal agencies must follow the NEPA policies identified in 
Sec. Sec.  102-76.40 and 102-76.45 of this chapter.

Lease Construction


Sec.  102-73.110  What rules must Executive agencies follow when 
acquiring leasehold interests in buildings constructed for Federal 
Government use?

    When acquiring leasehold interests in buildings to be constructed 
for Federal Government use, Executive agencies must--
    (a) Establish detailed building specifications before agreeing to a 
contract that will result in the construction of a building;
    (b) Use competitive procedures;
    (c) Inspect every building during construction to ensure that the 
building complies with the Government's specifications;
    (d) Evaluate every building after completion of construction to 
determine that the building complies with the Government's 
specifications; and
    (e) Ensure that any contract that will result in the construction 
of a building contains provisions permitting the Government to reduce 
the rent during any period when the building does not comply with the 
Government's specifications.

Price Preference for Historic Properties


Sec.  102-73.115  Must Federal agencies offer a price preference to 
space in historic properties when acquiring leased space?

    Yes, Federal agencies must give a price preference to space in 
historic properties when acquiring leased space using either the lowest 
price technically acceptable or the best value tradeoff source 
selection processes.


Sec.  102-73.120  How much of a price preference must Federal agencies 
give when acquiring leased space using the lowest price technically 
acceptable source selection process?

    Federal agencies must give a price evaluation preference to space 
in historic properties as follows:
    (a) First to suitable historic properties within historic 
districts, a 10 percent price preference.
    (b) If no suitable historic property within an historic district is 
offered, or the 10 percent preference does not result in such property 
being the lowest price technically acceptable offer, the Government 
will give a 2.5 percent price preference to suitable non-historic 
developed or undeveloped sites within historic districts.
    (c) If no suitable non-historic developed or undeveloped site 
within an historic district is offered, or the 2.5 percent preference 
does not result in such property being the lowest price technically 
acceptable offer, the Government will give a 10 percent price 
preference to suitable historic properties outside of historic 
districts.
    (d) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.


Sec.  102-73.125  How much of a price preference must Federal agencies 
give when acquiring leased space using the best value tradeoff source 
selection process?

    When award will be based on the best value tradeoff source 
selection process, which permits tradeoffs among price and non-price 
factors, the Government will give a price evaluation preference to 
historic properties as follows:
    (a) First to suitable historic properties within historic 
districts, a 10 percent price preference.
    (b) If no suitable historic property within an historic district is 
offered or remains in the competition, the Government will give a 2.5 
percent price preference to suitable non-historic developed or 
undeveloped sites within historic districts.
    (c) If no suitable non-historic developed or undeveloped site 
within an historic district is offered or remains in the competition, 
the Government will give a 10 percent price preference to suitable 
historic properties outside of historic districts.
    (d) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.

Leases With Purchase Options


Sec.  102-73.130  When may Federal agencies consider acquiring leases 
with purchase options?

    Agencies may consider leasing with a purchase option at or below 
fair market value, consistent with the lease-purchase scoring rules, 
when one or more of the following conditions exist:
    (a) The purchase option offers economic and other advantages to the 
Government and is consistent with the Government's goals.
    (b) The Government is the sole or major tenant of the building, and 
has a long-term need for the property.
    (c) Leasing with a purchase option is otherwise in the best 
interest of the Government.

Scoring Rules


Sec.  102-73.135  What scoring rules must Federal agencies follow when 
considering leases and leases with purchase options?

    All Federal agencies must follow the budget scorekeeping rules for 
leases, capital leases, and lease-purchases identified in appendices A 
and B of OMB Circular A-11. (For availability, see 5 CFR 1310.3.)

Delegations of Leasing Authority


Sec.  102-73.140  When may agencies that do not possess independent 
leasing authority lease space?

    Federal agencies may perform for themselves all functions necessary 
to acquire leased space in buildings and land incidental thereto when--
    (a) The authority may be delegated (see Sec.  102-72.30) on the 
different types of delegations related to real estate leasing);
    (b) The space may be leased for no rental, or for a nominal 
consideration of $1 per annum, and is limited to terms not to exceed 1 
year;
    (c) Authority has been requested by an Executive agency and a 
specific delegation has been granted by the Administrator of General 
Services;
    (d) A categorical delegation has been granted by the Administrator 
of General Services for space to accommodate particular types of agency 
activities, such as military recruiting offices or space for certain 
county level agricultural activities (see Sec.  102-73.155 for a 
listing of categorical delegations); or

[[Page 67795]]

    (e) The required space is found by the Administrator of General 
Services to be wholly or predominantly utilized for the special 
purposes of the agency to occupy such space and is not generally 
suitable for use by other agencies. Federal agencies must obtain prior 
approval from the GSA regional office having jurisdiction for the 
proposed leasing action, before initiating a leasing action involving 
2,500 or more square feet of such special purpose space. GSA's approval 
must be based upon a finding that there is no vacant Government-owned 
or leased space available that will meet the agency's requirements. 
Agency special purpose space delegations can be found in Sec. Sec.  
102-73.170 through 102-73.225.

Categorical Space Delegations


Sec.  102-73.145  What is a categorical space delegation?

    A categorical space delegation is a standing delegation of 
authority from the Administrator of General Services to a Federal 
agency to acquire a type of space identified in Sec.  102-73.155, 
subject to limitations in this part.


Sec.  102-73.150  What is the policy for categorical space delegations?

    Subject to the limitations cited in Sec. Sec.  102-73.230 through 
102-73.240, all Federal agencies are authorized to acquire the types of 
space listed in Sec.  102-73.155 and, except where otherwise noted, may 
lease space