GSA Delegated Most Types of Real Property Authority but Did Not Have Consistent or Complete Data for Certain Delegated Activities

GSA delegated authority for operations and maintenance, utility services,  lease management, administrative contracting officer activities, repair and  alterations, and real estate leasing to its tenant agencies. Additionally, GSA officials said they had not seen a pattern of  problems that would indicate a need for more oversight of these  delegations. In addition,  PBS did not collect data on categorical and special purpose delegations. GSA  officials told us that they believe the lack of complete data for delegations  of repair and alteration project authority up to $100,000 was not  problematic. Federal agencies using these delegations may lack experience  in acquiring office space, which could result in offices being housed in  substandard buildings and the government not receiving the best deal. GSA officials acknowledged the need to update the delegations  desk guide and the customer guide and said the updates are in process. The lack of updated  guidance could limit GSA’s ability to manage its delegations effectively. GSA Did Not Always Use Mandated Criteria When Deciding to Delegate Certain Real Property Activities, and the Procedures Used Were Not Always Included in Written Guidance

GSA did not always use mandated cost-effectiveness criteria when  delegating activities, as shown in table 4. All of the agencies we interviewed that received real property delegations  said their decisions to seek delegations were not based on a lack of  satisfaction with GSA’s performance in the given service but rather were  useful in certain circumstances where GSA’s knowledge and expertise  were less critical. GSA is currently implementing several changes to  improve its data collection for lease delegations and will issue separate  oversight procedures that include a requirement to reconcile the two  sources of lease delegation data. However, it is unclear when the oversight  procedures will be issued. While  GSA officials said updates to some of the guidance are in process, it is  unclear when these updates will be finalized. Recommendations for Executive Action

To improve GSA’s ability to oversee the various delegated authorities, we  recommend that the Administrator of GSA take the following two actions:    develop written procedures for reviewing the different sources of its lease  delegation data to identify and determine an accurate count of the leases  awarded using all three types of leasing delegations and   update the guidance for managing delegations, including procedures for  assessing the cost-effectiveness of individual repair and alteration  delegations above $100,000, operations and maintenance delegations,  general purpose leasing delegations, and special purpose leasing  delegations that exceed 2,500 square feet. Appendix I: Objectives, Scope, and Methodology

Given your interest in the General Services Administration’s (GSA) use of  real property delegations of authority, we determined (1) what real  property authority GSA has delegated to its tenant agencies, (2) what  policies and procedures GSA uses to manage delegated real property  authority, and (3) reasons the tenant agencies requested delegated  authority. To determine what real property authority GSA delegated to its tenant  agencies and the criteria GSA used when deciding to delegate those  activities, we reviewed, among other materials, the law, the Federal  Management Regulation, and the Federal Acquisition Regulation related to  GSA’s authority to delegate real property functions; existing policies and  procedures for managing the delegations, including internal Public  Buildings Service (PBS) guidance on delegations of real estate leasing  authority and PBS’s “Standard Operating Procedures for Operation and  Maintenance of Delegated Real Property;” previous Office of  Governmentwide Policy reviews of delegations of real estate leasing  authority; PBS summaries of the lease delegation program; and data on the  number of delegations by type and agency from fiscal years 1996 to 2006.
Why GAO Did This Study

The General Services Administration (GSA) issues different types of delegations, whereby agencies may request authority to perform certain real property activities, such as leasing space and maintaining property. Effective management of the program is critical to ensuring that federal dollars are well spent and adequate workspace is provided. GAO was asked to determine (1) what real property authority GSA has delegated to its tenant agencies, (2) what policies GSA used to manage delegated authority, and (3) reasons the tenant agencies requested delegated authority. GAO reviewed the law, federal regulations, and GSA policies relating to six types of delegated authority and interviewed GSA officials and officials from six select tenant agencies. GAO analyzed GSA data on delegations issued from fiscal years 1996 to 2006.

What GAO Found

GSA delegated authority for operations and maintenance, utility services, lease management, administrative contracting officer, repair and alteration activities, and real estate leasing to its tenant agencies. However, GSA did not have complete or consistent data for key delegations. GSA officials believe the lack of complete data for repair and alteration delegations up to $100,000 was not problematic because they involve relatively small projects with limited program risk, and GSA has not noticed a pattern of problems that would warrant increased oversight. Regarding delegations of authority for real estate leasing, two offices within GSA collected separate sets of data. One office collected data on the number of general purpose lease delegations issued while another collected data on the number of lease delegations exercised for three different types of lease delegations (including general purpose, categorical, and special purpose). One office said its data are likely an undercount, and the different sets of data have not been reconciled. GSA is currently implementing several changes to improve its data collection for lease delegations and will issue separate oversight procedures that include a requirement to reconcile the two sources of lease delegation data. However, it is unclear when the oversight procedures will be issued. It is important to have accurate data on lease delegations because these delegations appear to be used more frequently than other delegation types. Federal agencies using these delegations may lack experience in acquiring office space, which could result in the government not receiving the best deal. We found that GSA had written policies and procedures for managing the six types of delegations we reviewed, but the guidance was not always current. GSA officials acknowledged the need to update some of its guidance and said the updates are in process, but it is unclear when these updates will be finalized. Further, GSA officials stated they did not always use mandated cost-effectiveness criteria when deciding to delegate authority for certain delegations due, in part, to staffing constraints. In addition, the procedures used for assessing cost-effectiveness were not always included in written guidance. The lack of updated guidance and limited use of mandated criteria inhibits GSA's ability to manage its delegations and determine if they are in the best interests of the government. According to the six tenant agencies we interviewed, the main reasons agencies sought delegations were the ability to complete their delegated real property activities in a timely manner and prioritize their own service requests, particularly in those cases where GSA's knowledge and expertise were less critical. Most of the six agencies we contacted plan to seek delegations in the future.