MEETING WITH GENERAL SERVICES ADMINISTRATION REGION 3 OFFICIALS RE PROSPECTUS PROCEDURES AND ALTERNATIVE MEANS OF CONSTRUCTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-01019R000200150014-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: January 31, 2002
• Sequence Number: 14
• Publication Date: December 10, 1976
• Content Type: MFR

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10 December 1976
SUBJECT: Meeting With General Services Administration Region 3
Officials re Prospectus Procedures and Alternative
Means of Construction
1. On 1 December 1976, at 1400 hours,
met with GSA Region 3 Public Buildings Servire officials
at our request to discuss current prospectus procedures and alterna-- ss4
tive means of getting construction accomplished. These officials were:
Mr. Kenneth Jacobson, Chief, Repair and Alteration Division,
(for brief introduction only).
Mr. Dale F. Gottschalk, Project Development Branch Chief.
Mr. I. Jack Gural, Director, Planning Staff, PBS.
Mr. Pat Stewart, Planning Staff Officer.
2. We explained to these officers that we wished to update
Agency information on prospectus procedures, clarify certain questions
in this regard and seek information on alternate approaches which might
be used in new building planning. We asked Messrs. Gottschalk and Gural
to review a Memorandum for the Record, dated 9 January 1975, Subject:
Acquisition of Space Under Public Buildings Act of 1959 as Amended by
Public Law 92-313 (copy attached), concerning a previous meeting on
this subject, and give us current procedures and authorities in this
field. Gottschalk, Gural and Stewart said there were no changes in
the basic laws, Public Buildings Act of 1959 amended by Public Law 92-313;
there are several procedural changes: (1) There is no longer a subcomponent
Office of Operating Programs in PBS Office of Space Planning and Manage-
ment; it is simply Public Buildings Service; (2) The purchase contract
(lease purchase) program which formerly provided an avenue for obtaining
a building under Public Law 92-313 is no longer applicable.
3. Obtaining Space:
The method of obtaining space is basically unchanged. These
steps are:
(a) Determination of the requirement
(b) Justification.
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Subject: Meeting With General Services Administration Region 3
Officials re Prospectus Procedures and Alternative
Means of Construction
(c) Options available:
(1) Leased Space
(2) Leased Construction
(3) New Construction, Federal
4. If the requester presents a "nonexempt" requirement, it goes
to GSA, eventually to the Public Works Committees of the Congress for
approval and appropriations within the GSA budget. If the requirement
is an "exempt" requirement (i.e., approved by Mr. Brunson, Plans Division
and Mr. Shipp, Commissioner's Office, Space Planning and Management as an
exception to the normal project), it goes to GSA but the construction may
be accomplished outside the Public Building fund by Congressional
appropriation by the Committee of the Congress handling that particular
Federal Agency (Atomic Energy was example)). In our case CIA would use
its own Congressional appropriations mechanism. Under "exempt status"
GSA still performs as the agent of the component funding the construction
and takes care of all local requirements, viz city, county, state and
regional planning agencies/bodies for land use and development, model
cities and urban renewal, mass transit, highways, flood control, and air,
water, solid waste, and other relevant environmental data.
5. Prospectus
Per FPMR 101-19.003-5, "prospectus" means the statement of
the proposed project, required by Section 7 of the Public Buildings
Act of 1959, as amended (40 U.S.C. 606) including a description,
its location, estimated maximum cost, a comprehensive plan for
providing space for all government officers and employees in the
locality of the proposed project, a statement by the Administrator
of General Services that suitable space owned by the government
is not available and that suitable rental space is not available
at a price commensurate with that to be afforded through the pro-
posed action, and a statement of rents and other housing costs cur-
rently being paid by the government for federal agencies to be
housed in the proposed project. A prospectus is required when the
totality of the work equals $500,000. In practical terms prospectus
approval means approval for the activity, not authority to proceed
with it. In new construction, procedure is to get prospectus approval
first, then seek funds. Repair and alteration projects may be partially
funded. Ti111~ reayired or pr spectuc a~ rp nual i~ 1~ mnnth~ but they
can be effective oyervear time spread.
6. In practical interpretation all work of whatever type on a
building or facility constitutes the "project". When total cost of
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Subject: Meeting With General Services Administration Region 3
Officials re Prospectus Procedures and Alternative
Means of Construction
the project (not separate parts) equals $500,000, the prospectus is
required. Each building having a separate Federal building number
is a separate project for prospectus purposes. In GSA practice
prospectuses under $10 million are taken directly to Congress
(Committee on Public Works, House and Senate); if over $10 million
GSA submits it to OMB first.
7. Timing for Construction of A New Building
Gural, Stewart and Gottschalk estimate that, by today's
standards, a new building might possibly be completed within 5 years
(maybe) from time request is made to GSA.
8. Current Activity
GSA received only $27 million for nation-wide requirements
in FY 77.
STATINTL
Distribution:
Orig. - OL/R?CDOfficial w/atty
1 - OL RECD Chrono w/o att
STATINTL OL/RECD/ 1(10 December 76)
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MEMORANDUM FOR: Chief, Real Estate and Construction Division, OL
SUBJECT : Acquisition of Space Under Public Buildings Act
of 1959 as ./untended by Public Law 92-313
REFERENCE : Memo to D/L fm DD/A, dtd 4 Dec 1974
1. Public Law 92-313 provides that there is "...establishe
in the. Treasury of the United States on such date as may be
determined by the Administrator,-a fund into which there shall be
deposited revenues and collections" from "User charges." The Act
further provides that the "14oneys deposited into the fund shall b
available for real property management and related activities in
.such amounts are are specified in annual appropriations Act witho.
regard to fiscal year limitations."
2. The Federal Property Management Regulations implement
Public Law 92-313 in Subpart 101-21. "Projects for the construct
or alteration of public buildings, or for tl'te alteration of lease,
buildings, for which GSA is responsible will be financed from the
Federal Buildings Fund" Federal Property Management Regulations
101-21.501.
3. Public Law 92-313 and the Federal Property Management
Regulations in 101-19.202 provide that projects shall be equitabl
distributed throughout the United States with due regard for the
comparative urgency of the need for each project as determined by
the Administrator of GSA.
4. Federal agencies identifying a need for construction of
a public building are required to provide the necessary informati
and requirements to GSA within 50 days of the receipt of a roques
for such information to include: (1) a statement of net space
occupied in public buildings by the Federal agency in the communi
for which the project is intended, and an itemization of area in
square feet allocated to each specific agency ftu,nction, (2) a fir.
statement of entire space and facility requirements, and (3) Beta
information on space requiring special structural or mechanical
facilities and such other information as provided in Federal Prop
Management Regulations 101-19.204.
S. Once the requesting agency has prepared its requirement
for the proposed facility they are forwarded to the Director of
Planning Staff, Office of Operating Programs, Public Building Sc'
-GSA, who acts as the liaison for coordinating the req Alts of
requesting agency in drafting; the proposal and specifications for
construction project.
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SUBJECT: Acquisition of Space Under Public Buildings Act
of 1959 as Amended by Public Law 92-313
6. The project requirements are then submitted to the Offif
of Space Planning and Management, Public Building Service. This
office approves the project, prepares a prospectus, or statement i
the proposed project including its description, location, estimate
maximum cost, etc., as outlined in FPMR 101-19.003-5. Public Law
92-313 requires the preparation of a prospectus where the propose
construction involves an expenditure in excess of $500,000,
7. The prospectus is submitted to the Office of Management
and Budget for approval in accordance with the provisions of
Executive Order 9384. If OMMB approves the project, the prospectu.
is submitted to the Committee on Public Works of the Senate and
House of Representatives for approval by resolution as provided is
Section 7 of PL 92-313.
8. Upon approval by the Public Works Committees of the Hou
and Senate, the project is then placed as a line item in the GSA
budget for the next fiscal year. As previously noted, the priori
of projects is determined by the Administrator of General Service
FPMR 101-19.202.
9. The GSA budget with the assigned priorities for
construction is submitted to the Appropriations Committees of the
House of Representatives and the Senate for approval and the fina
enactment as public law by the Senate and House of Representative
10. Projects approved by the Committees on Public Works of
the Senate and the House of Representatives for which an appropri
ation has not been made within one year after the date of approva
may be rescinded. by either Committee by resolution at any time
thereafter before such an appropriation has been made. PL 92-313
11. Attached is a copy of "Program and Space Requirements"
prepared by the U.S. Civil Service Commission for a proposed
Federal Executive Institute and. Managerial Training Center at
Charlottesville, Virginia and a copy of the prospectus prepared
for the Chairman, Committee on Public Works of the Senate.
Although these attachments concern the construction by the
University of Virginia and. lease to the Federal Government of the
proposed facility, they arc representatives of the requirements
which must be met to obtain the approval of any project under the
Public Buildings Act of 1959 as amended by PL 92-313.
12. There is attached also a copy of PL 92-31.3, PL 93-391
making the appropriation for the General Services Ad,zillistration
for the fiscal year ending 30 June: 1.975, and a copy of Executive
Order 9384, which are submitted as background information.
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SUBJECT: Acquisition of Space Under Public Buildings Act
of 1959 as Amended by Public Law 92-313
13. Members of the Real Estate Branch, RECD held several
informal meetings with GSA personnel including Mr. Jack Gural,
Director of Planning Staff, Office of Operating Programs,
Mr. Gerald Belt, member of the Planning Staff responsible for
prospectuses, and ;Is. Hilary Richards and 11r. James Barrett of
the Space :Management Division, Office of Operating Programs.
14. - During these meetings it was elicited that a project
managed under the Federal Buildings Fund would require an
estimated four years for completion consisting of at least a
year for the approval process, a year for the building design,
and two years for construction. Public Law 92-313 provides
that No purchase contract shall be entered into under the
authority granted under this section after the date of enactment
of this section." Since no purchase contracts may he granted
therefore after 16 June 1975, the time span for project approval
eliminates this avenue for obtaining a building under PL 92-313.
15. The factor of political pressures was adroitly alluded
to by GSA spokesman when the question of the assignment of
priorities was broached. GSA assigns priority status to the
construction projects approved in descending order and might
receive appropriations from Congress on only 5 or 6 out of 100
projects, for example.
16. GSA personnel said that there were many projects which
wore not handled through the Federal Buildings Fund. A building
under construction at the Atomic Energy Commission complex at
Germantown was cited as an example. They thought that with the
pressures of competing with all other Government agencies for
the construction of buildings under the Federal. Buildings Fund,
the better approach and one more likely to obtain approval would
be through whatever Committees of Congress controlled Agency
matters, as had been done by the AEC. If this approach is taken
an informal approval is apparently obtained from the House and
Senate Committees on Public Works.
17. The GSA personnel interviewed emphasized that the
Federal Buildings Fund does not provide funds for feasibility
studies or for the development of requirements for the'construct
of a building. =hen a building project is approved by the Publi,
Works Committees o-= Congress and Funds have been appropriated,
those funds will include site preparation and A and E expenses.
STATINTL
Approved For Release 2002/05/07 : CIA-
Construction Division, OL
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SUBJECT: Acquisition of Space Under Public Buildings Act
of 1959 ad Amended by Public Law 92-313
Attachments:
1. Letter from Robert E. H3.2npton to Hon. Arthur F. Sampson
with attached Program. and Spoce Requirements, June 1974
2. Letter from Arthur F. Sampson to Lion. Jennings Randolph
with attached prospectus No. PVC'.-75011
3.' Public Law 92-313
4.' Public Law 93-381
S. Executive Order 9384
Distribution:
Orig.,- Addressee, w/atts
- OL/RECD Official
- OL/RECD/REB Chrono
OL/RECD/REB/
(9 January 1975)
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Acquisition of Space Under Public Buildings Act of 1959
As Amended by Public Law 92-313
Preparation,of Requiremen s by C.I.A. (C.I.A. Funds)
G.S.A.
1. Review the Prolec (Planning Staff,
Office of Operating Programs, PBS,
2. Prepare Prospectus (Office of Space
Planning, and 1anagement, PBS)
O.M.B.
Project Approval
STATINTL
STATINTL
Public Works Committee of the Senate and IYouse of Representatives
jcTpr
C.S.A.
1. Project Prioiity Established
2. Submission of Project in GSA Budget
House and Senate J.J_Propr iations Committees
Prod eet IA pp `rovai
House of Rcj,i xesentatives and Senate
Approval of Appropriation as i ublic Law
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Ptf,O S
Scc~c-'nvz,r
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