Lease Acquisition: GSA Can Move HUD's Kansas City Offices More Quickly

GGD-90-30 Published: Nov 21, 1989. Publicly Released: Nov 21, 1989.
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Highlights

Pursuant to a congressional request, GAO examined the actions that the General Services Administration's (GSA) Kansas City regional office took to procure leased space for the Department of Housing and Urban Development (HUD), focusing on why the regional office terminated the procurement on the award date.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
General Services Administration The Administrator of General Services should direct the GSA Regional Administrator to reconsider present plans and attempt to: (1) find suitable space for HUD in Kansas City before January 1991, possibly by amending the present solicitation and moving forward the occupancy date; and (2) avoid paying rental costs for the present location for the period it will not be occupied, possibly by utilizing the holdover option and not extending the lease as planned.
Closed - Implemented
GSA: (1) moved the HUD employees into another building in September 1990 by moving forward the occupancy date of the lease; and (2) did not extend the lease in the old building, as originally planned, but renegotiated the old lease. As a result, GSA awarded $1,464,000 in rental costs for the old location for October 1990 through December 1990, the period the building will not be occupied.

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