PUBLIC BUILDINGS AMENDMENTS OF 1972

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00793R000100260005-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: November 7, 2001
• Sequence Number: 5
• Publication Date: February 8, 1973
• Content Type: MF

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O GC Subj: Buildings, Grounds &
Property 8 FEB 1973
SUBJECT : Public Buildings Amendments of 1972
1. You have asked if the Headquarters Building space must be considered
subject to a user charge as may be fixed by the Administrator of General Services
pursuant to the Public Buildings Amendments of 1972. For the reasons set out below,
it is my opinion that that space is not subject to assessment by the Administrator.
2. Section 4 of the Public Buildings Amendments of 1972 (P. L. 92-313) amends
the Federal Property and Administrative Services Act of 1949 by adding a new sub-
section which provides:
"(j) The Administrator is authorized and directed to charge anyone
furnished services, space, quarters, maintenance, repair, or other facilities
(hereinafter referred to as space and services), at rates to be determined by
the Administrator from time to time and provided for in regulations issued by
him. Such rates and charges shall approximate commercial charges for
comparable space and services... " (40 USCA 490 (j)).
3. At the outset, it may be noted that this provision is not specifically made
applicable to buildings "under the (Administrator's) exclusive jurisdiction and control
and... custody" (cf 40 USCA 285), or, to "any building owned by the United States"
(cf 40 USCA 490 (b)), or to "federally owned and leased space... for which the
Administrator is responsible" (cf E. O. 11512 at 40 USCA 490 fnote). Its legislative
history, however, shows that it is to be made applicable to GSA operated buildings
generally. In this connection, see House Report 92-18, pages 17 and 18, and also
118 Cong. Rec. 3274.
4. The Headquarters Building is a GSA-operated building. A reading of the
1959 concordat, as represented by the exchange of correspondence between the
Administrator of General Services and the Director of Central Intelligence, wherein
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SUBJECT: Public Buildings Amendments of 1972
it was understood that GSA would perform functions incident to the operation,
maintenance, and protection of the building using its appropriation should make that
obvious. The legal basis for such an arrangement is 40 USCA 490 (b).
5. In terms of subsection (j), it can be seen that the charges authorized are
composed of two elements, one of which is related to Administrator-furnished space
and the other to Administrator-furnished services. As regards the charge to be made
for Administrator-furnished space, the Administrator's testimony before the Sub-
committee on Public Buildings and Grounds on September 22, 1971, is most revealing.
By way of demonstrating the merits of his proposal, he stated:
"(This bill) would require Government departments and agencies to pay
user charges or 'rent' for the space they occupy in GSA operated buildings,
rather than get it free of charge as at present.
"At present, GSA assigns more than 200 million square feet of office,
warehouse, and other Government space and provides related real property
service to more than 820, 000 Federal employees. Funds necessary to pay
for this space and these services are appropriated almost exclusively to
GSA. In fiscal year 1971, our Public Buildings Service obligated almost
$660, 000, 000. All of this $660, 000, 000 was budgeted to GSA, even though
it was spent to support hundreds of Federal programs in virtually every
Government department and agency.
"Budgeting the cost of furnishing all of this space to GSA is both illogical
and inconsistent with the program budgeting concept that prevails elsewhere
throughout the Government.
"We believe (this bill) will also result in substantial economies and
efficiencies in the use of space in Government buildings. Agencies and depart-
ments that do not pay for space have no incentive to conserve space. As a
matter of fact, when space is provided free, agencies and departments are
much more likely to request more space than they really need" (House
Report 92-18, pages 18 and 19).
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SUBJECT: Public Buildings Amendments of 1972
6. Thus, it is quite apparent that the target of subsection (j) was to be those
agencies who were obtaining Administrator-furnished space "free of charge. "
Stated otherwise, its purpose is to forestall certain agencies from "free loading"
on GSA's appropriation. However, the Headquarters Building space was not obtained
in the manner of which GSA complained.
7. The construction of the Headquarters Building was authorized by the Act
of July 15, 1955 (P. L. 84-161), which, in Section 401 of Title IV thereof, provided:
"The Director of Central Intelligence is authorized to provide for a
headquarters installation for the Central Intelligence Agency... at a cost
of not to exceed $54, 500, 000... "
8. The initial appropriation for the Headquarters Building was contained in
the Supplemental Appropriation Act of 1956 (P. L. 84-219) of which Chapter III
provided:
"Central Intelligence Agency. Construction. For the preparation of
detail plans and specifications of a Central Intelligence Agency headquarters
installation. . . as authorized by Title IV of the Act of July 15, 1955.. .
$5, 500, 000. "
9. The balance of the sums :required for the construction was subsequently
appropriated by enactment of the Supplemental Appropriation Act of 1957 (P. L.
84-814). This read in part:
"Central Intelligence Agency. Construction. For the preparation of
detail plans and specifications and the construction of the Central Intelligence
Agency headquarters installation... as authorized by Title IV of the Act of
July 15, 1955... $49,000,000" (Chapter III).
10. The legislative history accompanying these statutes shows that the Agency
space requirements for its Headquarters installation, together with the dollar amounts
required to satisfy them, were fully justified in the hearings conducted by the cognizant
House and Senate subcommittees. The statutes themselves are clear and unequivocal.
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SUBJECT: Public Buildings Amendments of 1972
They show that the Congress conferred construction authority directly upon the
Director of Central Intelligence and appropriated funds necessary to implement that
authority directly to the Agency. It follows therefore that the Headquarters building
space can not be considered to be Administrator -furnished. For GSA to maintain
now that the Agency's continued occupancy is dependent upon its again seeking funds
from Congress to make expenditures for a need already satisfied by a prior
appropriation would, to quote the former Administrator, be "both illogical and
inconsistent with the program budgeting concept... " (House Report 92-18 at page 19).
11. Accordingly, it is my opinion that the Headquarters space is not to be
considered subject to the user charge authorized by Subsection (j). Of course, this
is not to say that the Headquarters Building is not subject to an assessment fo gWTINTL
charges insofar as they relate to Administrator-furnished services.
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