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Measure advances in Congress to significantly cut waste and the cost of federal property leases

“Resolved by the Committee on Transportation and Infrastructure of the U.S. House of Representatives, that pursuant to 40 U.S.C. §3307, appropriations are authorized for a replacement lease of up to 348,000 rentable square feet of space, including 20 parking spaces, for the Nuclear Regulatory Commission, currently located at Two White Flint, 11545 Rockville Pike, Bethesda, Maryland, at a proposed total annual cost of $11,832,000 for a lease term of up to 15 years, for which a prospectus and overall Housing Strategy amending such prospectus is attached to and included in this resolution” (source: Congressional Record).

A letter was read into the Congressional Record from the Chairman of the House Committee on Transportation and Infrastructure. It deals with section 3307 of title 40, United States Code.

It reads as follows:

Washington, DC, December 9, 2013.
Hon. John Boehner,
Speaker of the House, House of Representatives, The Capitol, Washington, DC.

Dear Mr. Speaker: On December 4, 2013, pursuant to section 3307 of title 40, United States Code, the Committee on Transportation and Infrastructure met in open session to consider resolutions to authorize five lease prospectuses included in the General Services Administration’s (GSA) FY2011 and FY2014 Capital Investment and Leasing Programs (CILP).

Our Committee continues to work to cut waste and the cost of federal property and leases. The resolutions approved by the Committee will save the taxpayer $12.9 million annually or $193.6 million over the terms of the Leases. These resolutions ensure savings through lower rents and shrinking the space requirements of agencies. With these resolutions, the total savings for GSA prospectuses approved by the Committee this year is over $668 million.

One of the resolutions approved on December 4 is for a lease replacement for the Nuclear Regulatory Commission (NRC) in Rockville, Maryland. This was an outstanding lease prospectus submitted as part of the FY2011 C1LP. While other agencies agreed to reduce their space footprint and reduce costs, NRC had not done so. After working with the NRC and GSA, the Committee brokered an agreement that will put 1,100 additional employees into NRC’s buildings by having space backfilled by the Food and Drug Administration (FDA). As a result, FDA has agreed to relinquish four leases that will save the taxpayer $145.8 million. Letters from the NRC and FDA acknowledging this agreement are enclosed.

I have also enclosed copies of the five resolutions adopted by the Committee on Transportation and Infrastructure on December 4, 2013.

Sincerely,

Bill Shuster,
Chairman.

Committee Resolution

LEASE–NUCLEAR REGULATORY COMMISSION, SUBURBAN MARYLAND

Resolved by the Committee on Transportation and Infrastructure of the U.S. House of Representatives, that pursuant to 40 U.S.C. §3307, appropriations are authorized for a replacement lease of up to 348,000 rentable square feet of space, including 20 parking spaces, for the Nuclear Regulatory Commission, currently located at Two White Flint, 11545 Rockville Pike, Bethesda, Maryland, at a proposed total annual cost of $11,832,000 for a lease term of up to 15 years, for which a prospectus and overall Housing Strategy amending such prospectus is attached to and included in this resolution.

Approval of this prospectus and overall Housing Strategy constitutes authority to execute an interim lease for all tenants, if necessary, prior to the execution of the new lease.

Provided that, the Food and Drug Administration, currently occupying four locations under leases expiring between 2014 and 2016 in Bethesda and Rockville, MD, backfill no less than 186,313 usable square feet in the building known as Three White Flint North at an annual rental rate of not more than $7,825,146.

Provided that, the Nuclear Regulatory Commission shall be responsible for the rental costs for Three White Flint North which exceed the rental rate paid by the Food and Drug Administration, or any subsequent backfill tenant, for the term of the lease for Three White Flint North.

Provided that, the Administrator of General Services and the Chairman of the Nuclear Regulatory Commission and the Commissioner of the Food and Drug Administration agree to apply an overall utilization rate of 200 and 170 square feet or less per person, respectively,

Provided that, except for interim leases as described above, the Administrator may not enter into any leases that are below prospectus level for the purposes of meeting any of the requirements, or portions thereof, included in the prospectus that would result in an overall utilization rate of 200 square feet or higher per person for the Nuclear Regulatory Commission and 170 for the Food and Drug Administration.

Provided that, to the maximum extent practicable, the Administrator shall include in the lease contract(s) a purchase option that can be exercised at the conclusion of the firm term of the lease.

Provided further, that the Administrator shall require that the delineated area of the procurement is identical to the delineated area included in the prospectus, except that, if the Administrator determines that the delineated area of the procurement should not be identical to the delineated area included in the prospectus, the Administrator shall provide an explanatory statement to the Committee on Transportation and Infrastructure of the House of Representatives prior to exercising any lease authority provided in this resolution.

Provided further, that the General Services Administration shall not delegate to any other agency the authority granted by this resolution.

Source: Congressional Record http://thomas.loc.gov

See related article: Committee on Transportation and Infrastructure waste cutting measures http://archives.republicans.transportation.house.gov/singlepages.aspx/1596

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