Federal Management Regulation; Real Property Disposition Policies and Procedures, 104493-104499 [2024-29377]

Agencies

• General Services Administration

[Federal Register Volume 89, Number 246 (Monday, December 23, 2024)]
[Proposed Rules]
[Pages 104493-104499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29377]


=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

41 CFR Part 102-75

[FMR Case 2024-02; Docket No. GSA-FMR-2024-0013; Sequence No. 1]
RIN 3090-AK80


Federal Management Regulation; Real Property Disposition Policies 
and Procedures

AGENCY: Office of Government-Wide Policy (OGP), U.S. General Services 
Administration (GSA)

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. General Services Administration (GSA) proposes to 
amend subparts of the Federal Management Regulation (FMR) pertaining to 
real property disposition to align with the Federal Property and 
Administrative Services Act's disposition process and to address 
considerations and decisions needed at each stage of the disposal 
process. This proposed rule will add definitions, policy, and 
procedures where there were none previously. The rule will assist 
Federal landholding agencies with understanding their responsibilities 
when contemplating asset management and disposal actions and engaging 
with GSA using GSA's authority and their own authorities to meet their 
Federal real property goals and objectives.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
February 21, 2025, to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FMR case 2024-02 to: 
Regulations.gov at https://www.regulations.gov. Submit comments

[[Page 104494]]

via the Federal eRulemaking portal by searching for ``FMR Case 2024-
02.'' Select the link ``Comment Now'' that corresponds with FMR Case 
2024-02. Follow the instructions provided at the ``Comment Now'' 
screen. Please include your name, company name (if any), and ``FMR Case 
2024-02'' on your attached document. If your comment cannot be 
submitted using https://www.regulations.gov, call or email the points 
of contact in the FOR FURTHER INFORMATION CONTACT section of this 
document for alternate instructions.
    Instructions: Please submit comments only and cite FMR Case 2024-
02, in all correspondence related to this case. Comments received 
generally will be posted without change to https://www.regulations.gov, 
including any personal or business confidential information, or both. 
To confirm receipt of your comment(s), please check www.regulations.gov 
approximately two to three days after submission to verify posting.

FOR FURTHER INFORMATION CONTACT: Mr. Chris Coneeney, Director, Real 
Property Policy Division, Office of Government-wide Policy, at 202-208-
2956 or [email protected], for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat Division at 202-501-4755 or [email protected]. 
Please cite FMR Case 2024-02. A summary of this proposed rule is 
available at https://www.regulations.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    GSA was founded in 1949 with the enactment of the Federal Property 
and Administrative Services Act.\1\ Public Law 107-217, enacted August 
21, 2002 (40 U.S.C. 101 and 501, et seq.), ``Public Buildings, Property 
and Works,'' effectively repealed the Federal Property and 
Administrative Services Act and re-codified its provisions without 
substantive change. Chapter 5 of the public law will be referred to as 
the ``Property Act'' throughout this regulation. The Federal Property 
and Administrative Services Act established GSA as the Federal 
Government's centralized management agency consolidating the functions 
of predecessor agencies (e.g., Federal Works Agency and the War Assets 
Administration) and authorities such as the 1935 Act and the Surplus 
Property Act of 1944, including the authority to be the Federal 
Government's real property disposal agent. Since that time, the Federal 
real estate landscape has dramatically changed and GSA has evolved from 
operating solely as the Property Act disposal agent to being a 
customer-focused Government-wide realty services provider.
---------------------------------------------------------------------------

    \1\ https://disposal.gsa.gov/s/act49.
---------------------------------------------------------------------------

    Over the past fifteen years there has been a heightened focus on 
Federal real property asset management that can be attributed to both 
executive and legislative actions demonstrating a continuing desire for 
GSA to play a critical role in disposing of unneeded real property and 
increasing proceeds from the sale of such property.
    On November 9, 2011, President Obama signed Executive Order (E.O.) 
13589 ``Promoting Efficient Spending'' \2\ directing each agency to 
reduce its combined costs in a variety of administrative categories by 
not less than 20 percent in Fiscal Year (FY) 2013 from FY 2010 levels.
---------------------------------------------------------------------------

    \2\ https://obamawhitehouse.archives.gov/the-press-office/2011/11/09/executive-order-13589-promoting-efficient-spending.
---------------------------------------------------------------------------

    To achieve these savings, many agencies identified and implemented 
creative and innovative practices to reduce costs and improve 
efficiencies in real estate. On May 11, 2012, the Office of Management 
and Budget (OMB) published Memorandum M-12, ``Promoting Efficient 
Spending to Support Agency Operations,'' \3\ to describe a series of 
policies and practices for agencies to take to improve operations, 
increase efficiency, and cut unnecessary spending.
---------------------------------------------------------------------------

    \3\ https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2012/m-12-12_0.pdf.
---------------------------------------------------------------------------

    Subsequently, OMB published Memorandum No.2013-02 on March 14, 
2013, ``Implementation of OMB Memorandum M-12-12 Section 3: Freeze the 
Footprint,'' \4\ as guidance for the Freeze the Footprint (FTF) policy, 
which directed Chief Financial Officers (CFO) Act agencies to maintain 
the total size of their agency office and warehouse space to an FY 2012 
baseline. FTF required agencies to freeze the growth in their office 
and warehouse inventory or offset any new acquisitions with concomitant 
reductions. Under the guidance, agencies developed and annually updated 
three-year plans to restrict the growth in their office and warehouse 
inventories. Agencies also developed internal controls to facilitate 
increased communication between agency CFO and Real Property Management 
offices. The coordinated planning and communication improved agencies' 
internal management of Federal real property assets. The FTF policy was 
in effect from FY 2012 through FY 2015. Federal agencies exceeded the 
FTF policy's objective by decreasing the Government-wide office and 
warehouse baseline by 24.7 million square feet.\5\
---------------------------------------------------------------------------

    \4\ https://obamawhitehouse.archives.gov/sites/default/files/omb/financial/memos/implementation-of-freeze-the-footprint-guidance.pdf.
    \5\ https://obamaadministration.archives.performance.gov/initiative/freeze-footprint.html.
---------------------------------------------------------------------------

    After the FTF policy expired, the requirement for agencies to 
freeze their office and warehouse baselines to a set portfolio 
continued through the Reduce the Footprint (RTF) policy. The RTF policy 
was the successor to the FTF policy; it used FY 2015 data to set a new 
office and warehouse baseline for agencies to adhere to.
    On March 25, 2015, OMB released the National Strategy for the 
Efficient Use of Real Property \6\ and its companion policy, the Reduce 
the Footprint (RTF) policy.\7\ The National Strategy was a three-step 
framework to improve real property management aimed to freeze growth in 
the inventory, measure performance to identify opportunities for 
efficiency improvements through data driven decision-making, and 
ultimately reduce the size of the inventory by prioritizing actions to 
consolidate, co-locate, and dispose of properties. Over time, 
application of the National Strategy improved the utilization of 
Government owned and leased buildings, lowered the number of excess and 
underutilized properties, and improved the cost effectiveness and 
efficiency of the overall real property portfolio.
---------------------------------------------------------------------------

    \6\ https://obamawhitehouse.archives.gov/sites/default/files/omb/financial/national-strategy-efficient-use-real-property.pdf.
    \7\ https://obamawhitehouse.archives.gov/sites/default/files/omb/financial/memos/implementation-reduce-the-footprint.pdf.
---------------------------------------------------------------------------

    To make progress under this strategy, OMB issued the RTF policy 
with Memorandum No. 2015-01, ``Implementation of OMB Memorandum M-12-12 
Section 3: Reduce the Footprint,'' \8\ on March 25, 2015. The RTF 
policy required agencies to submit annual Real Property Efficiency 
Plans (Plan) to OMB that--
---------------------------------------------------------------------------

    \8\ https://obamawhitehouse.archives.gov/sites/default/files/omb/financial/memos/implementation-reduce-the-footprint.pdf.
---------------------------------------------------------------------------

    (1) Set annual square foot reduction targets for Federal domestic 
buildings;
    (2) Adopted an office space design standard to optimize Federal 
domestic office space usage; and
    (3) Required agencies' office and warehouse portfolios to remain at 
or below their FY 2015 FTF baselines.
    Under the RTF policy, OMB established a Government-wide policy to 
use property as efficiently as possible

[[Page 104495]]

and to reduce agency portfolios through annual reduction targets. The 
RTF policy was an impetus for real property management transformation 
that provided value to taxpayers. By implementing this policy, in FY 
2016 through FY 2020, the U.S. Government reduced its office and 
warehouse space by 8.2 million square feet, with an estimated annual 
cost avoidance of $130.7 million.\9\
---------------------------------------------------------------------------

    \9\ https://www.performance.gov/real-property/real-property-metrics/.
---------------------------------------------------------------------------

    On November 6, 2019, with the issuance of OMB Memorandum M-20-03, 
``Implementation of Agency-wide Real Property Capital Planning,'' \10\ 
CFO Act agencies are no longer required to submit annual Plans to OMB. 
Agencies are still required to set the office, warehouse, and owned 
property annual reduction targets, but these targets are incorporated 
into the agency capital plans supported by a brief narrative.
---------------------------------------------------------------------------

    \10\ https://www.whitehouse.gov/wp-content/uploads/2019/11/M-20-03.pdf.
---------------------------------------------------------------------------

    OMB Memorandum M-20-03 also provided heads of executive departments 
and agencies with capital planning requirements for real property, in 
accordance with the Federal Property Management Reform Act of 2016 
(FPMRA), 40 U.S.C. 621, et seq., enacted on December 16, 2016.\11\ The 
FPMRA established the Federal Real Property Council (FRPC) \12\ and 
charged it with ensuring implementation of an efficient and effective 
real property management strategy.
---------------------------------------------------------------------------

    \11\ https://www.govinfo.gov/content/pkg/PLAW-114publ318/pdf/PLAW-114publ318.pdf.
    \12\ https://www.performance.gov/real-property/.
---------------------------------------------------------------------------

    In addition, in OMB Memorandum M-20-10, ``Issuance of an Addendum 
to the National Strategy for the Efficient Use of Real Property,'' \13\ 
issued March 6, 2020, Action 6 states that the Government will 
establish and publish accountable annual performance metrics for all 
agencies.
---------------------------------------------------------------------------

    \13\ https://www.whitehouse.gov/wp-content/uploads/2020/03/M-20-10.pdf.
---------------------------------------------------------------------------

    To further improve the management of Federal real property, the 
Federal Assets Sale and Transfer Act of 2016 (FASTA) (Pub. L. 114-287) 
\14\ was enacted on December 16, 2016, with subsequent amendments. 
FASTA requires that all executive branch Federal agencies, with certain 
exceptions, submit current data of all Federal civilian real properties 
owned, leased, or controlled by a Federal agency. Data is reported at 
the constructed asset level for each land, building and other structure 
that is owned, leased or otherwise managed by the agency.
---------------------------------------------------------------------------

    \14\ https://www.congress.gov/114/plaws/publ287/PLAW-114publ287.pdf.
---------------------------------------------------------------------------

    FASTA also requires OMB and GSA to identify opportunities for the 
Federal Government to reduce its inventory of civilian real property, 
more efficiently utilize existing properties, and reduce the cost for 
maintaining these properties.
    GSA provides the Federal Government a center of expertise for 
Federal real property disposal by offering strategic asset management 
tools to landholding agencies to identify, prepare, and divest unneeded 
property.

II. Summary of Significant Changes

Section 102-75.5

    GSA is adding this section to clarify and add to the definitions 
that apply to this part that are consistent with U.S. Code; as well as 
move the definitions to one section to increase the readability for the 
user. GSA is updating the definitions of the types of utilization. GSA 
is removing Sec.  102-75.45 and replacing the term ``not utilized'' 
with ``unutilized,'' and adding the corresponding statutory reference. 
GSA is removing Sec.  102-75.50 and adding the corresponding statutory 
reference. GSA is removing Sec.  102-75.55 and no longer uses the term 
``not being put to optimum use.'' GSA is adding the definition of 
``utilized'' which is consistent with definitions used by Federal 
agencies in responding to the Federal Real Property Profile Management 
System.\15\
---------------------------------------------------------------------------

    \15\ https://www.gsa.gov/policy-regulations/policy/real-property-policy-division-overview/asset-management/federal-real-property-profile-frpp.
---------------------------------------------------------------------------

Section 102-75.6

    GSA is changing this section to more accurately describe the scope 
and coverage of the regulation. GSA is adding specific references to 
laws for clarity and defining the Property Act.

Section 102-75.7

    GSA is moving Sec.  102-75.296 to Sec.  102-75.7.

Section 102-75.8

    GSA is moving Sec.  102-75.297 to Sec.  102-75.8.

Section 102-75.9

    GSA is moving Sec.  102-75.298 to Sec.  102-75.9.

Section 102-75.10

    GSA is moving Sec.  102-75.65 to Sec.  102-75.10.

Section 102-75.11

    GSA is moving Sec.  102-75.70 to Sec.  102-75.11.

Section 102-75.12

    GSA is adding this section. GSA is removing any reference to 
``disposal agency'' and replacing it with ``GSA'' since these 
regulations implement a primary authority of GSA. The term ``GSA'' also 
includes any agency with a delegation of authority from GSA applicable 
to these regulations.

Section 102-75.13

    GSA is adding this section to state that severability applies to 
the part.

Section 102-75.15

    GSA updated this section to clarify and provide more detailed 
information to include a comprehensive list of the disposal actions 
landholding agencies may take while operating under a GSA delegated 
authority.

Section 102-75.20

    GSA updated this section to clarify and provide more detailed 
information about how Federal agencies with independent disposal 
authority may obtain disposal services from GSA through a Memorandum of 
Agreement or Reimbursable Work Authorization.

Section 102-75.40

    GSA is adding this section to clarify and add to the definitions 
that apply to this part that are consistent with U.S. Code; as well as 
move the definitions to one section to increase the readability for the 
user. GSA is adding the definitions of ``public domain land'' and 
``withdrawn public domain land.''

Sections 102-75.50 Through 102-75.60

    GSA is adding these sections to clarify and expand upon current 
Sec. Sec.  102-75.100 and 102-75.105.

III. Regulatory Impact Analysis

    During the first year after publication of the final rule, GSA will 
need to update the Real Property Disposal Customer Guide. GSA estimates 
this cost by multiplying the time required to review the regulations 
and guidance implementing the proposed rule by the estimated hourly 
compensation. GSA calculates the estimated hourly compensation using 
the U.S. Office of Personnel Management's 2024 General Schedule (GS) 
Rest of United States Locality Pay Table, a full fringe benefit cost 
factor of 36.25%, and an overhead cost factor of 
12%.16 17 18 19
---------------------------------------------------------------------------

    \16\ General Schedule (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2024/general-schedule/).
    \17\ Computing Hourly Rates of Pay Using the 2,087-Hour Divisor 
(https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/computing-hourly-rates-of-pay-using-the-2087-hour-divisor/).
    \18\ OMB Memo M-08-13, dated March 11, 2008 (https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2008/m08-13.pdf).
    \19\ OMB Circular A-76 (https://georgewbush-whitehouse.archives.gov/omb/circulars/a076/a76_incl_tech_correction.html).

---------------------------------------------------------------------------

[[Page 104496]]

1. Government Costs

    The Government must update the glossary in the Customer Guide to 
Real Property Disposal. GSA makes these assumptions based on historical 
familiarization and subject matter expert judgment. Below is a list of 
activities related to updating the glossary in the Real Property 
Disposal Customer Guide that GSA anticipates will occur. GSA estimates 
it will take 1 GSA data analyst on average, with a GS-9 step 5 with an 
average hourly rate of $48.28/hour, 12 hours in year 1 to update the 
glossary in the Real Property Disposal Customer Guide. Therefore, GSA 
estimates the total estimated cost for this part of the proposed rule 
to be $579 (= 1 x $48.28 GS-9 step 5 rate x 12 hours). GSA estimates it 
will take 5 GSA Senior Realty Specialists on average, with a GS-13 step 
5 with an average hourly rate of $83.25/hour, 2 hours each in year 1 to 
review the glossary updates in the Real Property Disposal Customer 
Guide. Therefore, GSA estimates the total estimated cost of this part 
of the proposed rule to be $833 (= 5 x $83.25 GS-13 step 5 rate x 2 
hours).
    GSA estimates it will take 1 GSA Branch Chief on average, with a 
GS-14 step 5 with an average hourly rate of $98.38/hour, 2 hours in 
year 1 to review the glossary updates in the Real Property Disposal 
Customer Guide. Therefore, GSA estimates the total estimated cost of 
this part of the proposed rule to be $197 (= 1 x $98.38 GS-14 step 5 
rate x 2 hours).
    GSA estimates it will take 1 GSA Zonal Director on average, with a 
GS-15 step 5 with an average hourly rate of $115.72/hour, 1 hour in 
year 1 to review and approve the glossary updates in the Real Property 
Disposal Customer Guide. Therefore, GSA estimates the total estimated 
cost of this part of the proposed rule to be $116 (= 1 x $115.72 GS-15 
step 5 rate x 1 hour).
    GSA estimates it will take 1 GSA attorney on average, with an SES 
Level 3 with an average hourly rate of $144.91/hour, 4 hours in year 1 
to review and approve the glossary updates in the Real Property 
Disposal Customer Guide. Therefore, GSA estimates the total estimated 
cost of this part of the proposed rule to be $580 (= 1 x $144.91 SES 
Level 3 rate x 4 hours).
    GSA estimates it will take 1 GSA Assistant Commissioner on average, 
with an SES Level 3 with an average hourly rate of $144.91/hour, 1 hour 
in year 1 to review and approve the glossary updates in the Real 
Property Disposal Customer Guide. Therefore, GSA estimates the total 
estimated cost of this part of the proposed rule to be $145 (= 1 x 
$144.91 SES Level 3 rate x 1 hour).

2. Total Government Costs

    GSA estimates the total estimated Government costs to be $2,449 for 
years 1 through 10. A breakdown of total estimated Government costs by 
year is provided in the table below.

--------------------------------------------------------------------------------------------------------------------------------------------------------
              Year                     1           2           3           4           5           6           7           8           9          10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Government Costs..........     $2,449   ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Total Overall Costs

    The undiscounted estimated total overall cost over a 10-year period 
is $2,449, equal to the total estimated Government costs, above, as 
there is no direct cost to the public under this proposed rule. The 
following is a summary of the estimated costs calculated for a 10-year 
time horizon at a 2-percent discount rate:

------------------------------------------------------------------------
                                                                 Total
                           Summary                               costs
------------------------------------------------------------------------
Present Value (2 percent)....................................     $2,401
Annualized Costs (2 percent).................................        267
------------------------------------------------------------------------

4. Benefits

    The regulations for real property disposition were last published 
in November 2005. There are numerous updates needed to improve the 
readability and clarity of the regulation. The proposed rule will add 
definitions, policies, and procedures where there were none previously. 
The clarity provided by this update will assist Federal landholding 
agencies with understanding their responsibilities when contemplating 
asset management and disposal actions and how to engage with GSA using 
GSA's authority and their own authorities to meet their Federal real 
property goals and objectives.

5. Analysis of the Alternative

    The preferred process is laid out in the analysis above. However, 
GSA has analyzed an alternative to the preferred process below.
    Alternative 1: GSA could decide to take no regulatory action. The 
Government would not incur the additional costs associated with this 
proposed rule; however, the regulation would not reflect current policy 
and best practices for real property disposition. As a result, GSA 
rejected this alternative.

IV. Executive Orders 12866, 13563, and 14904

    E.O. 12866 (Regulatory Planning and Review) directs agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
E.O. 13563 (Improving Regulation and Regulatory Review) emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. E.O. 14094 
(Modernizing Regulatory Review) amends section 3(f) of E.O. 12866 and 
supplements and reaffirms the principles, structures, and definitions 
governing contemporary regulatory review established in E.O. 12866 and 
E.O. 13563. OMB's Office of Information and Regulatory Affairs has 
determined that this proposed rule is a significant regulatory action 
and, therefore, it is subject to review under section 6(b) of E.O. 
12866.

V. Regulatory Flexibility Act

    GSA does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because it applies to agency management or personnel. Therefore, an 
Initial Regulatory Flexibility Analysis has not been performed.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FMR do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the

[[Page 104497]]

public that require the approval of OMB under 44 U.S.C. 3501, et seq.

VII. Severability

    GSA is proposing to add a new provision on severability at 41 CFR 
102-75.13, which states that all provisions included in part 102-75 are 
separate and severable from one another.
    If any particular term or provision in part 102-75, or the 
application thereof to any agency or circumstance, is determined by a 
court of competent jurisdiction to be invalid or unenforceable, the 
remaining terms or provisions, or the application of such term or 
provision to agencies or circumstances other than those to which it is 
invalid or unenforceable, will not be affected thereby, and each term 
and provision of this proposed rule will be valid and be enforced to 
the fullest extent permitted by law.
    Further, any cross-references that appear throughout part 102-75 
are duplicative and are intended only to make the regulations more 
user-friendly. Invalidation of a particular provision that is cross-
referenced elsewhere will not materially alter the provision that 
contains the cross-reference.
    In summary, removal of any particular provision from part 102-75 
would not render the entire regulatory scheme unworkable. Thus, GSA 
considers each of the provisions in subpart A or B of part 102-75 to be 
separate and severable from one another. In the event of a stay or 
invalidation of any particular provision, it is GSA's intention that 
the remaining provisions will continue in effect.

List of Subjects in 41 CFR Part 102-75

    Federal buildings and facilities, Government property management, 
Rates and fares, Surplus Government property.

Earl Pinto,
Acting Associate Administrator, Office of Government-wide Policy.
    For the reasons set forth in the preamble, GSA proposes to amend 41 
CFR part 102-75 as set forth below:

PART 102-75--REAL PROPERTY DISPOSAL

0
1. The authority citation for 41 CFR part 102-75 is revised to read as 
follows:

    Authority:  40 U.S.C. 121(c), 521-523, 541-559.

0
2. Revise subparts A and B to read as follows:
Subpart A--General
Sec.
102-75.5 What definitions apply to this part?
102-75.6 What is the scope of this part?
102-75.7 When may a landholding agency other than GSA be the 
disposal agency for real and related personal property?
102-75.8 Are there any exceptions to when landholding agencies can 
serve as the disposal agency?
102-75.9 Can agencies request that GSA be the disposal agency for 
real property and real property interests described in Sec.  102-
75.7?
102-75.10 Why are Federal landholding agencies required to notify 
GSA of their real property needs?
102-75.11 Are there any exceptions to the notification policy in 
this subpart?
102-75.12 What basic real property policy does GSA follow and 
promote?
102-75.13 What portions of this part are severable?
102-75.14 [Reserved]

Real Property Disposal Services

102-75.15 If an agency is operating under authority delegated from 
GSA, what real property disposal services is it authorized to 
provide?
102-75.20 How can Federal agencies with independent disposal 
authority obtain disposal and other real estate related services?
102-75.25--102-75.35 [Reserved]
Subpart B--Asset Management Policy for Federal Real Property
102-75.40 What definitions apply to this subpart?
102-75.45 [Reserved]

Land Withdrawn or Reserved from the Public Domain

102-75.50 What process or steps does a landholding agency follow to 
relinquish withdrawn or reserved public domain land?
102-75.51 What makes land not suitable for return to the public 
domain?
102-75.52 If DOI determines and the Administrator concurs that the 
land is not suitable for return to the public domain, what are the 
next steps?
102-75.53 What happens to improvements on withdrawn or reserved 
public domain land if BLM determines the land is suitable for return 
to the public domain?
102-75.54 Can landholding agencies abandon, destroy, or donate 
improvements on withdrawn public land determined to be unsuitable 
for return to the public domain?
102-75.55 [Reserved]
102-75.60 Which agency is responsible for disposing of mineral 
interests and rights?

Subpart A--General


Sec.  102-75.5  What definitions apply to this part?

    All the definitions in 41 CFR 102-71.20 apply to this part, in 
addition to the definitions listed in this section. Some definitions 
have been repeated in this section for ease of reference.
    Landholding agency means the Federal agency that has accountability 
for the property involved and reports the real property on its 
financial statements and inventory records.
    Underutilized means an entire property or portion thereof, with or 
without improvements, which is used only at irregular periods or 
intermittently by the accountable landholding agency for current 
program purposes of that agency, or which is used for current program 
purposes that can be satisfied with only a portion of the property 
(Sec.  102-75.1160; accord 45 CFR 12a.1; 24 CFR 581.1).
    Unutilized means an entire property or portion thereof, with or 
without improvements, not occupied for current program purposes for the 
accountable executive agency or occupied in caretaker status only 
(Sec.  102-75.1160; accord 45 CFR 12a.1; 24 CFR 581.1).
    Utilized means real property that is used for the current mission 
needs of the accountable landholding agency and is not defined as 
unutilized or underutilized.


Sec.  102-75.6  What is the scope of this part?

    This part implements the real property disposition authorities 
provided by Public Law 107-217 (40 U.S.C. 101 and 501, et seq.), 
``Public Buildings, Property and Works.'' The real property policies 
contained in this part apply to Federal landholding agencies 
(landholding agency), including GSA's Public Buildings Service (PBS), 
operating under, or subject to, the authorities of the Administrator of 
General Services. This part also applies to Federal agencies with 
delegated authority to dispose of real property under the ``Property 
Act'' (chapter 5 of Pub. L. 107-217), the Surplus Property Act of 1944, 
as amended (1944 Act), and the provisions of other applicable statutes.


Sec.  102-75.7  When may a landholding agency other than GSA be the 
disposal agency for real and related personal property?

    A landholding agency may be the disposal agency for real and 
related personal property when--
    (a) The agency has statutory authority to dispose of real and 
related personal property;
    (b) The agency has delegated authority from GSA to dispose of real 
and related personal property;
    (c) The agency is disposing of--
    (1) Leases, licenses, permits, easements, and other similar real 
estate interests held by agencies in non-Government-owned real 
property;
    (2) Government-owned improvements, including fixtures,

[[Page 104498]]

structures, and other improvements of any kind, as long as the 
underlying land is not being disposed; or
    (3) Standing timber, embedded gravel, sand, stone, and underground 
water, without the underlying land; or
    (d) The agency has independent disposal authority. The agency 
should follow its regulations implementing such disposal authority. 
Where the agency's regulations are silent, then the agency can follow 
GSA's regulations as a best practice for the disposition of real and 
related personal property.


Sec.  102-75.8  Are there any exceptions to when landholding agencies 
can serve as the disposal agency?

    Yes, landholding agencies may not serve as the disposal agency 
when--
    (a) Either the landholding agency or GSA determines that the 
Government's best interests are served by disposing of leases, 
licenses, permits, easements, and similar real estate interests 
together with other property owned or controlled by the Government that 
has been or will be reported to GSA; or
    (b) Government-owned machinery and equipment being used by a 
contractor-operator will be sold to a contractor-operator.


Sec.  102-75.9  Can agencies request that GSA be the disposal agency 
for real property and real property interests described in Sec.  102-
75.7?

    Yes. If requested, GSA, at its discretion, may be the disposal 
agency for such real property and real property interests.


Sec.  102-75.10  Are Federal landholding agencies required to notify 
GSA of their real property needs?

    Yes, 40 U.S.C. 521(1) and 524(b)(3), require Federal landholding 
agencies to notify GSA of their real property needs. It is important 
that each landholding agency notify GSA of its real property needs to 
determine whether the excess or surplus real property of another agency 
is available and would meet its need, preventing the unnecessary 
purchase or lease of real property. The requirements for reporting real 
property are provided in subsequent sections of this part.


Sec.  102-75.11  Are there any exceptions to the notification policy in 
this subpart?

    Yes, a landholding agency with real estate acquisition authority is 
not required to notify GSA when its proposed acquisition of real 
property is dictated by exact geographical location, topography, 
engineering, or similar characteristics that limit the possibility of 
using another agency's available real property. Also, notification is 
not required if the acquisition of real property is required or 
directed by statute. For example, if a landholding agency needs to 
acquire real property for a dam site, reservoir area, or the 
construction of a generating plant or a substation, it is not required 
to notify GSA since specific land is needed, which limits the potential 
of other available excess real property to meet the need. However, 
agencies are encouraged to notify GSA and utilize its knowledge and 
expertise to assist in the proposed acquisition.


Sec.  102-75.12  What basic real property policy does GSA follow and 
promote?

    GSA provides, in a timely, efficient, and cost-effective manner, 
the full range of real estate services necessary to support its and 
other landholding agencies' real property asset management, 
utilization, and disposal needs. GSA also assists landholding agencies 
with meeting the requirements of E.O. 13327, which includes identifying 
property that is utilized, underutilized, and unutilized. Through this 
part, GSA establishes policies that promote and improve asset 
management, and that facilitate the efficient and effective utilization 
and disposal of Federal real property.


Sec.  102-75.13  What portions of this part are severable?

    All provisions of this part are separate and severable from one 
another. If any provision is stayed or determined to be invalid, it is 
GSA's intention that the remaining provisions will continue in effect.


Sec.  102-75.14  [Reserved]

Real Property Disposal Services


Sec.  102-75.15  If an agency is operating under authority delegated 
from GSA, what real property disposal services is it authorized to 
provide?

    A landholding agency with GSA's delegated authority must follow the 
Property Act disposal process (exception: see subpart F of this part 
regarding delegations) and may provide real estate services, within its 
own agency, such as appraisals, and land use, environmental, and market 
studies. Under a delegation, landholding agencies may transfer excess 
real property for further use within the agency and to other 
landholding agencies. With respect to the disposal of surplus real 
property, agencies with GSA's delegated authority may assign and convey 
surplus real property for the various public purposes as allowed in the 
Property Act, and may also conduct negotiated sales, public sales, and 
other related disposal and post-disposal services (e.g., compliance 
inspections for public benefit conveyances, excess profits monitoring 
for negotiated sales, and monitoring of any other deed restrictions and 
special conditions).


Sec.  102-75.20  How can Federal agencies with independent disposal 
authority obtain disposal and other real estate related services?

    Federal agencies with disposal authority separate and apart from 
the Property Act are encouraged to obtain utilization, disposal, and 
related real estate and asset management services from GSA, as allowed 
by both the Property Act and 31 U.S.C. 1535 (Economy Act), so that they 
can remain focused on their core missions. In such cases, GSA may 
provide disposal and other real estate services on a reimbursable 
basis, using an agreement or other authorizing document (e.g., 
Memorandum of Agreement (MOA) or Reimbursable Work Authorization (RWA)) 
between GSA and the landholding agency. At a minimum, the agreement or 
authorizing document will provide details on the authority being used, 
roles and responsibilities of the landholding agency and GSA, retention 
of proceeds, as applicable, GSA's expenses and reimbursement, and 
protection and maintenance of the property. Unless specifically 
exempted by other statutory provisions, all real property dispositions 
are subject to the Property Act.


Sec. Sec.  102-75.25-102-75.35  [Reserved]

Subpart B--Asset Management Policy for Federal Real Property


Sec.  102-75.40  What definitions apply to this subpart?

    All the definitions in 41 CFR 102-71.20 apply to this subpart, in 
addition to the definitions listed in this section.
    Public domain land means land that was acquired from another 
sovereign and has either never left Federal ownership after initial 
acquisition or was acquired in exchange for other land owned by the 
United States that similarly had never left Federal ownership--i.e., 
acquired in exchange for other public domain land (see 43 CFR 3000.5).
    Withdrawn public domain land means land that has been taken out of 
public use or access for a specific Federal mission purpose.

[[Page 104499]]

Sec.  102-75.45  [Reserved]

Land Withdrawn or Reserved From the Public Domain


Sec.  102-75.50  What process or steps does a landholding agency follow 
to relinquish withdrawn or reserved public domain land?

    Before withdrawn or reserved public domain land can be returned to 
the public domain or disposed of, the Secretary of the Department of 
the Interior (DOI) must determine, and the Administrator of GSA 
(Administrator) must concur on whether or not the land is suitable for 
return to the public domain. Specifically, the landholding agency must 
submit a Notice of Intention to Relinquish (NOITR) (43 CFR part 2370, 
subpart 2372) to the appropriate Bureau of Land Management (BLM) office 
and send a copy to the appropriate GSA regional office.


Sec.  102-75.51  What makes land not suitable for return to the public 
domain?

    Generally, the Secretary of DOI determines, and the Administrator 
concurs, that the land is substantially changed in character and 
condition by improvements or otherwise.


Sec.  102-75.52  If DOI determines and the Administrator concurs that 
the land is not suitable for return to the public domain, what are the 
next steps?

    Landholding agencies must submit a Report of Excess Real Property 
(Standard Form 118), with Schedules A, B, and C, as appropriate along 
with a copy of DOI's response to the NOITR to the appropriate GSA 
regional office. Also, landholding agencies must submit DOI's report 
identifying whether--
    (a) Any agency (other than the relinquishing agency) claims either 
primary, joint, or secondary jurisdiction over the lands; or
    (b) The DOI's records show any encumbrances under the public land 
laws.


Sec.  102-75.53  What happens to improvements on withdrawn or reserved 
public domain land if BLM determines the land is suitable for return to 
the public domain?

    The formal withdrawal order will address the disposition of 
improvements on land that returns to the public domain. Specifically, 
the withdrawal order will authorize BLM, at its discretion, to--
    (a) Assume responsibility for the use and management of the 
improvement;
    (b) Require the landholding agency to remove the improvement; or
    (c) Engage GSA (or require the landholding agency) to dispose of 
the improvement for off-site removal use.


Sec.  102-75.54  Can landholding agencies abandon, destroy, or donate 
improvements on withdrawn public land determined to be unsuitable for 
return to the public domain?

    Landholding agencies must report the real property as excess to GSA 
(see Sec.  102-75.52) and follow the requirements in subpart E of this 
part on abandonment, destruction, or donation to public bodies.


Sec.  102-75.55  [Reserved]


Sec.  102-75.60  Which agency is responsible for disposing of mineral 
interests and rights?

    GSA is generally responsible for the disposal of mineral interests 
and rights, whether separate from the land or with the land, for real 
property that the landholding agency has determined to be excess. GSA 
has exclusive authority for such disposal when the mineral interest and 
rights are located within incorporated areas (e.g., city, town, 
village, etc.) using its authority under the Property Act.
    (a) As set out in the Federal Land and Policy Management Act of 
1976, DOI, through BLM, has authority for the disposal of mineral 
interests and rights within public domain or withdrawn lands.
    (b) BLM also has authority to manage and dispose of mineral 
interests and rights associated with real property acquired outside of 
incorporated areas where the land was acquired under authorities prior 
to 1920.
    (1) If land and mineral interests or rights are reported to GSA and 
are located outside of an incorporated area, GSA may provide an 
opportunity to BLM to provide GSA with a recommendation on whether the 
mineral interests and rights should be retained by the Government.
    (2) If BLM recommends that the mineral interests and rights should 
be retained, GSA may transfer such to BLM. If BLM determines that the 
Government does not need to retain the mineral interests and rights or 
does not respond to the notice given, GSA will dispose of such under 
its authority.
    (c) Where BLM is given an opportunity to provide a recommendation 
under paragraph (b)(1) of this section, GSA will provide BLM 30 days to 
provide such recommendation.
    (d) When determining the suitability of land for return to the 
public domain, BLM may make a determination with regard to any mineral 
interests located on such land. For land determined to be unsuitable 
for return to the public domain, GSA may take BLM's determination with 
regard to mineral interests into consideration when deciding whether 
to--
    (1) Proceed with a disposal of such interests, with or without the 
fee interest in the land; or
    (2) Reserve such interests. If reserved, BLM is the agency 
responsible for managing such reserved mineral interests.

[FR Doc. 2024-29377 Filed 12-20-24; 8:45 am]
BILLING CODE 6820-61-P