TRANSMITTAL OF DRAFT REPORTS - ADMINISTRATIVE SERVICES REORGANIZATION PROJECT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00759R000100150011-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: November 5, 2001
• Sequence Number: 11
• Publication Date: May 24, 1978
• Content Type: MEMO

Approved~, r Release 2002/017
President's D
Reorganization
Project
Administrative Services Reorganization Project
GS Building
18th&FSts. NW
Washington, DC 20405
MAY 2 4 1978
TO: Heads of Executive Agencies and Establishments
FROM: Joseph F. Malaga, Executive Director
SUBJECT: Transmittal of Draft Reports - Administrative Services
Reorganization Project
Last October 25, we asked for your views on how best to improve the delivery
of administrative services within the Federal Government. Since that time,
we have conducted an extensive study, and have prepared a series of service
improvement alternatives related to real property, archives and records,
supply and support services, and telecommunications. The first of four task
force reports to be issued in draft over the next several weeks,-.real pro-
perty - is enclosed. Others will be forwarded within the next 30 days. A
fifth report on our overall assessment and organizational alternatives will
be forthcoming after comments on the draft task force reports have been re-
viewed.
Many of the largest departments and agencies have represented the Federal
interest during the project through the Assistant Secretaries' Management
Group and the General Services Advisory Council. It is essential, however,
that all agencies be given adequate opportunities to review the work of the
proj.ect staff and register their views vis-a-vis the alternatives presented.
Please review the enclosed draft on real property services and give us your
written comments by June 7, 1978. Comments should be sent to the Adminis-
trative Services Reorganization Project, GS Building, 18th and F Streets, NW,
Washington, DC 20405.
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
 Approved For Release 2002/01/08 : CIA-RDP8'5-00759R000100150011-8
President's
Reorganization
Project
Administrative Services
Reorganization Project
Real Property Task Force
Findings and Alternatives
IZ-
May 19, 1978
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
 Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
'we
EXECUTIVE SUMMARY
BACKGROUND
A number of statutes, Executive Orders, and regulations
deal with the Federal Government's real property activities.
Many agencies have authority to lease, construct, operate
and dispose of real property. The General Services
Administration, which has the central role for the Executive
Branch, has delegated certain real property authorities to
agencies. Some agencies have their own statutory responsi-
bilities for real property. Other agencies which obtain
real property services from the GSA have developed their
own staff capabilities in the real property area. The
result is a proliferation of real property activities
throughout the Executive Branch. A recent study by the
Office of Federal Procurement Policy produced a list of
over 50 organizations in 22 Federal agencies conducting
more than $5.7 billion in construction effort during fiscal
year 1976.
The Real Property Task Force examined the organization and
provision of real property services within the Executive
Branch. It considered all Federal real property used
primarily for office space and certain categories of
non-office space. While all agencies were included in the
review, the principal focus of the study was on 19 major
agencies that performed over 90 percent of Federal real
property services.
Three comprehensive issues were addressed by the Task Force:
o What is the appropriate level of centralized and
decentralized authorities throughout the Executive
Branch to lease, construct, operate, and dispose of
Federal real property and to regulate the exercise
of these authorities?
o Are there fixed limitations that inhibit the delivery
of real property services unreasonably?
o What are the most effective funding mechanisms to
finance and deliver real property services within
defined performance levels?
Approved For Release 2002/01/08 : CIA-RDPP5-00759R000100150011-8
 Approved For Rele p 2002/01/08 : CIA-RDP85-00759R000j0150011-8
ALTERNATIVES IDENTIFIED--CENTRALIZATION/DECENTRALIZATION
AND LIMITATIONS
Leasing
Two alternatives were developed to improve the leasing
activities of the Federal Government. One would vest total
authority in GSA to regulate leasing services and provide
or delegate the provision of these services. The other
alternative would vest total regulatory authority in GSA
and would have GSA primarily perform office-type leasing;
other agencies would be vested with non-office type leasing
authority. In both alternatives, agencies would be delegated
authority to lease office-type space in areas of non-major
Federal space concentrations.' This authority would be for
up to 5,000 square feet for 5 years..
Five fixed limitations were identified in the leasing area.
The suggested alternatives would:
o Change the threshold for applicability of the Economy
Act from $2,000 to 5,000 square feet and allow
deduction for real estate taxes in computing the
15 percent of fair market value rental limitation.
o Revise Executive Order 11512 of February 27, 19'Q,
to vest final authority to resolve space assignment
disagreements in the Administrator of General Services.
o Authorize GSA to pay for options to acquire interests.
in real property.
o Authorize GSA to convey an interest in a Government-
owned site for lease-construction projects.
o Revise the criteria for Congressional approval of
lease prospectuses from $500,000 to 125,000 square
feet for office-type space and to 300,000 square feet
for storage/warehouse space. Also, exempt all lease
renewals and succeeding leases.
One alternative would vest total authority in GSA to
regulate new construction and repair and alteration services
and to provide these services. A second alternative would
be the same as the first except that GSA would make sub-
stantial delegations of execution authority to user agencies.
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
vi
 I
^
I
r
Approved For ReleW 2002/01/08 : CIA-RDP85-00759R00 100 150011-8
A third alternative would vest regulatory authority in
GSA, continue GSA's authorities to construct, repair,
and alter or delegate the execution of these services for
public buildings. This alternative would vest authority in
agencies to execute these services for non-office type space
and for office type space on installations.
Four fixed limitations were identified in the construction
area. The suggested alternatives would!
o Revise the 6 percent limitation on architect-
engineer design fees and deal with the audit
requirement for architect-engineer fees exceeding
$100,000.
o Revise the Davis-Bacon Act, requiring payment of
prevailing local wages on Federal construction
contracts, by increasing the minimum application
threshold from $2,000 to $40,000.
o Revise the Miller Act, requiring payment and
performance bonds for construction contracts, by
increasing the minimum application threshold from
$2,000 to $40,000.
o Revise the Public Buildings Act of 1.959, requiring
Congressional approval of prospectuses for new
construction and repair and alteration projects,
by increasing the current threshold amount of
$500,000 to $2,500,000.
Building Operations
The Task Force developed two alternatives for improving the
management of buildings. The first would vest total authority
in GSA to regulate building operations and to provide or
delegate the provision of these services. The second
alternative would be the same as the first except that GSA
would operate non-office type space only at the request of
user agencies.
Three fixed limitations were identified in the building
operations area. The suggested alternatives would:
o Amend the Federal Property and Administrative
Services Act to allow GSA to contract selectively
for building operations for periods up to three
years to serve the best interests of the Government.
o Change the requirement for individual wage deter-
minations in favor of publishing geographical wage
rates that remain in effect until superseded and
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
 Approved For Release 2002/01/08 : CIA-RDP85-00759R0001,0015001.1-8
improve Labor Department procedures for furnishing
wage rate determinations.
o Relax or remove personnel ceilings for other than
permanent full time employees and allow GSA to engage
in direct hire of trade personnel on a temporary
basis to meet workload fluctuations.
Disposal
The Task Force alternative would vest total authority in
GSA to regulate and execute or delegate.the execution of
utilization and disposal of real property. It would rescind
certain real property utilization and disposal authorities
vested in other agencies.
The suggested alternatives in two areas with fixed
limitations would:
o Amend the Federal Property and Administrative Services
Act to vest final authority to the Administrator of
General Services for determination of excess property.
o Amend the Federal Property and Administrative Services
Act to (a) allow funding of real property utilization
and disposal activities on a percentage of sales
proceeds basis or (b) authorize the use of proceeds
from the sale of surplus real and related personnel
property for payment of certain expenses.
"in
a
FUNDING MECHANISMS
The Task Force developed three alternatives to improve the
mechanisms for financing real property services.
In the first alternative the Federal Buildings Fund would
be a true revolving fund. Business-type annual operating
plans and budgets would be prepared for OMB and Congressional
oversight. The Fund would be removed from the annual
appropriations process; restrictions on reprogramming funds
among activities would be removed; and the requirement to
deposit income to miscellaneous receipts of the Treasury
would be eliminated. Personnel ceilings would be removed.
The second alternative would retain the present Federal
Buildings Fund with some major modifications. These
improvements would eliminate the'deposit of income require-
ment; allow proceeds from disposal of GSA properties to be
deposited in the Fund; and allow a 10 percent reprogramming
of funds among the four activities of the Fund to meet
unforeseen requirements.
Approved For Release 2002/01/08 : CIA-RDPo50759R000100150011-8
 Approved For Relee 2002/01/08 : CIA-RDP85-00759R000 0150011-8
The. third alternative would abolish the Federal Buildings
Fund and return to financing real property programs by
direct appropriations to GSA.
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
 STATINTL Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8
Next 1 Page(s) In Document Exempt
Approved For Release 2002/01/08 : CIA-RDP85-00759R000100150011-8