DEAR ADMIRAL TURNER:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000600040043-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: December 26, 2006
• Sequence Number: 43
• Publication Date: October 31, 1979
• Content Type: LETTER

Appra ed.. For-Release 2006/12/27: CIA-RDP85-00988R000600040043-5
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DD/A Registj-y]
Admiral Stansfield Turner, USN
Director
Central Intelligence Agency
Washington, DC 20505
Dear Admira_J=Turner:
Thank you for your letter dated August 7, 1979, concerning the drdl,a`i',
increase in the Standard Level User Charge (SLUC) assessed your Aytr:cf
for facilities in McLean and Arlington, Virginia.
Section 210(j) of the Federal Property and Administrative Sprvic"i Ct
authorizes and directs the Administrator to charge anyone for se:-vic.-,
and s r,a :e at rates determined by the Administrator. Sect i !,,n 2111)(j)
gi rects that "... such rates and charges shall a;pproxi..at
co i'. dl charges for coiparable space anJ services
The SLUC rate is based on an appraisal of each facility and the rents
charge:! for similar buildings and services to commercial customers. The
appraisals are performed by independent consultants and reviewed by our
staff appraisers. Traditional appraisal techniques are used in compliance
with our procedures. GSA fixed SLUC rates for a 3-year term to assist
agencies in making budget projections. This process has insulated agencies
from market trends and annual escalations, but has exaggerated the impact
of new assessments.
This year is the first time that the appraisal method was used as a basis
for determining the SLUC rate at the McLean printing facility. The previous
assessment was made in February 1975 and was developed from a matrix rate
for a geographic area. An explanation of the change in methods is enclosed.
The length of time between reevaluation of your rate and the change in method
of evaluation are the reason for the 131 percent increase in the SLUC rate for
the printing facility.
As you will see in the three articles which I have enclosed, the rapid increase
in rents has been particularly acute in the Washington metropolitan area.
Within the last 2 years, commercial rates have increased 82 percent. The
increase in your SLUC charges for the two other facilities are within the
market increase. They average 43 - 48 percent over a 3-year period.
While increases of this magnitude are a burden to us all, the method of
determining the rates through the appraisal process is reasonable and
carries out the intent of Section 210(j) of the Federal Property and
Administrative Services Act.
Approved For Release 2006/12/27: CIA-RDP85-00988R000600040043-5
 Approved For Release 2006/12/27: CIA-RDP85-009888000600040043-5
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If you wish additional information, please have a member of your staff
contact Mr. John T. Myers, Regional Commissioner, Public Buildings
Service on 472-1891.
Sincerely,
-1n Iii
d '_4:3 =:t or
Enclosure
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Approved For Release 2006/12/27: CIA-RDP85-009888000600040043-5