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[House Report 113-656]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-656

======================================================================

 
            PUBLIC BUILDINGS SAVINGS AND REFORM ACT OF 2013

                                _______
                                

 December 11, 2014.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2612]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2612) to amend title 40, United 
States Code, to improve the functioning and management of the 
Public Buildings Service, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     5
Legislative History and Consideration............................     7
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
New Budget Authority and Tax Expenditures........................     8
Congressional Budget Office Cost Estimate........................     8
Performance Goals and Objectives.................................     9
Advisory of Earmarks.............................................     9
Duplication of Federal Programs..................................     9
Disclosure of Directed Rule Makings..............................     9
Federal Mandate Statement........................................    10
Preemption Clarification.........................................    10
Advisory Committee Statement.....................................    10
Applicability of Legislative Branch..............................    10
Section-by-Section Analysis of Legislation.......................    10
Changes in Existing Law made by the Bill, as Reported............    12

                         Purpose of Legislation

    H.R. 2612 would amend title 40, United States Code, to 
improve the functioning and management of the Public Buildings 
Service of the General Services Administration.

                  Background and Need for Legislation

    H.R. 2612 would amend title 40, United States Code, to 
improve the functioning and management of the Public Buildings 
Service of the General Services Administration (GSA).
    The Public Buildings Savings and Reform Act of 2013 
provides important bipartisan reforms of the agency responsible 
for managing much of the Federal Government's real property and 
office space. The legislation increases transparency and 
oversight of federal public buildings programs and helps ensure 
that agencies reduce their real estate footprint, better 
utilize office space, and save taxpayers' money.
    The Public Buildings Savings and Reform Act addresses key 
issues identified through Committee investigations, Government 
Accountability Office (GAO) studies, and Inspector General 
reports, and sets statutory frameworks and reforms to help 
eliminate this waste. Specifically, H.R. 2612 improves the 
management of Federal real property, strengthens transparency 
and oversight, and saves taxpayers' money.

Need for legislation

    The management of Federal real property has been on the 
GAO's High Risk list since 2003.\1\ The GAO noted that while 
steps have been taken to address problems in managing Federal 
real estate, significant waste persists. In addition, through 
Committee hearings and investigations and Inspector General 
investigations, waste has been identified not only in how 
properties are managed but in how space is procured and in the 
administration of public buildings.
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    \1\See High Risk Series, GAO-13-283, U.S. Government Accountability 
Office, February 2013.
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            Vacant and underutilized buildings
    Thousands of federal properties sit vacant and thousands 
more are underutilized. According to the GAO, there are more 
than 45,000 underutilized federal properties, costing the 
taxpayer more than $1.7 billion annually to operate.\2\ 
Unfortunately, instead of better using what they already have 
in the space inventory, federal agencies lease more and more 
space.
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    \2\Federal Real Property: Progress Made on Planning and Data, but 
Unneeded Owned and Leased Facilities Remain, GAO-11-520T, Apr 6, 2011.
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    While the scope of leased and owned property is generally 
known, the estimates on how much space is actually 
underutilized are less certain. In 2004, Executive Order 13327 
directed the development of a Federal Real Property Profile 
(FRPP). According to the GSA, the FRPP is described as ``the 
single comprehensive inventory system that contains data on all 
federal real property assets within and outside the United 
States, including improvements on federal land.'' Yet, the 
database is not readily accessible to Congress or for other 
oversight purposes. In addition, the GAO has questioned the 
reliability of the data contained in the FRPP.\3\ Further, the 
GSA has reported to the Committee that utilization rates in the 
GSA's owned and operated properties is based on whether a 
tenant agency is paying rent to the GSA for the space, not 
based on how the space is actually being used.
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    \3\Federal Real Property: National Strategy and Better Data Needed 
to Improve Management of Excess and Underutilized Property, GAO-12-645, 
U.S. Government Accountability Office, June 2012.
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    The Committee, pursuant to section 3307 of title 40, United 
States Code, receives ``prospectuses'' for the GSA to lease, 
construct or renovate space over a certain cost threshold.\4\ 
The Committee has consistently worked to reduce agency space 
requirements--project by project. As a result, during the 113th 
Congress, the Committee approved prospectuses with reductions 
that will potentially save the taxpayer up to $2.2 billion in 
lease costs and avoided construction. This demonstrates the 
opportunities across agencies to better utilize space and 
minimize costs.\5\
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    \4\For FY 2013, a prospectus is required for any project in excess 
of $2.79 million.
    \5\On March 14, 2013, the Office of Management and Budget (OMB) 
issued a directive to federal agencies to freeze their space footprint 
and submit Real Property Cost Savings and Innovation Plans, see 
Management Procedures Memorandum No. 2013-02.
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            Administrative costs and management issues
    In addition to the mismanagement of real property, waste in 
the administrative costs and management of the GSA's Public 
Buildings Service also surfaced. Specifically, in 2012 the 
GSA's Inspector General (GSA IG) revealed significant waste in 
the GSA's administrative spending related to conferences, 
bonuses, and internship programs. The Committee held hearings 
that examined how money was wasted on conferences like the 
Public Buildings Service's 2010 Western Regions Conference held 
near Las Vegas. The GSA IG found that the total cost of the 
conference was $822,751 including $136,504 spent on 8 pre-
conference scouting trips alone.\6\ During the Committee 
investigation, other waste was identified, including an 
internship conference at the Palm Springs Riviera resort that 
included 120 interns and 20 senior staff and the GSA ``Hats Off 
Program,'' as well as the fact that bonuses were provided even 
to GSA employees involved in the waste, raising serious 
questions about the bonus program.
---------------------------------------------------------------------------
    \6\2010 Western Regions Conference, Management Deficiency Report, 
Public Buildings Service, General Services Administration, Office of 
the Inspector General, April 2, 2012.
---------------------------------------------------------------------------
    During this time, the Committee investigated the budget and 
spending by the Public Buildings Services (PBS) on its 
administrative costs. Such costs are covered out of the Federal 
Buildings Fund (FBF). Within the FBF, the PBS's administrative 
costs are paid out of the ``building operations'' line item and 
totaled approximately $2.4 billion each year. While the GSA's 
budget documents provide some high-level information on PBS's 
administrative costs, the method and way in which the GSA's 
submits its budget makes it extremely difficult for 
congressional committees to evaluate. For example, the way the 
GSA reports its budget information did not reveal that between 
fiscal years 2007 and 2011, the PBS administrative costs for 
personnel and related costs had increased by $260 million nor 
was there any transparency on how much was being spent on 
conferences and bonuses.
            Courthouses
    Additional waste has been unearthed in the Federal 
courthouse construction program. As with many Executive Branch 
agencies, the Judiciary is a tenant of the GSA. In addition to 
the costs authorized for constructing a new courthouse, there 
are costs associated with rental payments to the GSA. In Fiscal 
Year 2012, the Judiciary's rental payments to the GSA totaled 
over $1 billion for approximately 42.4 million square feet of 
space in 779 buildings, including 446 Federal courthouses. The 
Committee has conducted ongoing oversight over the years on the 
Federal courthouse construction program. In 2005, Chairman 
Shuster and Del. Norton as the then-Chairman and Ranking Member 
of the Subcommittee on Economic Development, Public Buildings, 
and Emergency Management, requested that the Judicial 
Conference of the United States study the Judiciary's courtroom 
usage and report back to the Committee.
    In 2008, the Judiciary submitted to the Committee a final 
report on courtroom usage completed by the Federal Judicial 
Center (FJC), the education and research agency for the U.S. 
Courts. The FJC study showed that, on average, a courtroom is 
scheduled to be used 4.1 hours a day for active district judge 
courtrooms, two hours a day for senior judge courtrooms, and 
2.6 hours a day for magistrate judge courtrooms.\7\ In 
addition, only half of the scheduled courtroom time is actually 
spent on case-related proceedings. For example, the 4.1 hours 
scheduled for the use of courtrooms assigned to district judges 
includes about one hour for scheduled events that were 
subsequently canceled or postponed and one hour for events that 
are not related to case proceedings.\8\ In light of this study, 
the Committee requested the GAO review Federal courthouse 
planning and construction.
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    \7\Report on the Usage of Federal District Court Courtrooms, 
Judicial Conference of the United States, September 16, 2003. See also, 
Federal Courthouse Construction: Better Planning, Oversight, and 
Courtroom Sharing Needed to Address Future Costs, GAO-10-417, June 
2010.
    \8\Such as set-up and take-down time for courtroom uses, public 
tours and other events.
---------------------------------------------------------------------------
    In 2010, the GAO completed a study entitled, ``Federal 
Courthouse Construction: Better Planning, Oversight, and 
Courtroom Sharing Needed to Address Future Costs.''\9\ 
Specifically, the GAO examined 33 courthouses that were 
constructed during the ten-year period from 2000 to 2010. The 
GAO found that 3.56 million square feet of extra space was 
built because of the following reasons: the Judiciary grossly 
overestimated its 10-year projection of future judges assigned 
to courthouses; new courthouses did not incorporate courtroom 
sharing; and the GSA constructed courthouses above the 
congressionally-approved size.
---------------------------------------------------------------------------
    \9\GAO-10-417.
---------------------------------------------------------------------------
    In April 2013, the GAO released another study on the 
current process by which new courthouses are selected for the 
Judiciary's five-year Courthouse Project Plan.\10\ The most 
recent plan was submitted to the Committee on March 11, 2013 
for fiscal years 2014-2018. The plan lists 12 projects with $1 
billion in proposed costs. After reviewing the Judiciary's new 
evaluation process, the GAO found that the actual costs of the 
projects would cost closer to $3 billion, only two of the 
projects on the current list were evaluated through the 
Judiciary's new evaluation process, and a majority of those 
projects did not appear to meet the Judiciary's threshold for 
consideration on the list, raising questions about the 
reliability of the current plan. In response to the GAO 
findings, the Committee held a hearing on April 17, 2013 
entitled, ``GAO Review: Are Additional Federal Courthouses 
Justified?'' During the hearing the Judiciary committed to 
applying the new evaluation process to all the projects on its 
five-year plan and submitting an updated list to the Committee.
---------------------------------------------------------------------------
    \10\Federal Courthouses: Recommended Construction Projects Should 
Be Evaluated under New Capital-Planning Process, U.S. General 
Accountability Office, GAO-13-263, April 11, 2013.
---------------------------------------------------------------------------
              Judiciary's Response
    Since the issuance of the GAO reports and the Committee's 
hearings and oversight, the Judiciary has taken steps to 
improve its space management and utilization. For example, the 
Judicial Conference has adopted courtroom sharing policies for 
senior district, magistrate and bankruptcy judges. It has 
developed and is using a new Asset Management Planning (AMP) 
evaluation process for better identifying new space and 
renovation needs. In addition, the Judiciary has instituted 
three national space reduction policies, including:
           No Net New--This policy requires that any 
        increase in square footage within one of the 12 
        geographical circuits be offset by the equivalent 
        reduction of square footage during the same fiscal 
        year, unless otherwise authorized by Congress;
           Three Percent Space Reduction Target--This 
        policy establishes a target of a 3% space reduction by 
        the end of fiscal year 2018, unless otherwise 
        authorized by Congress; and
           Circuit Judicial Council Plans--This policy 
        requires each circuit judicial council to formulate a 
        space and rent management plan to identify how any 
        space reduction policies will be implemented.
    On October 1, 2014, the Judiciary submitted a Five Year 
Courthouse Project Plan for Fiscal Years 2016-2020 with 
revisions in accordance with the application of the new 
evaluation process as requested by the Committee at the April 
17, 2013 hearing.
            Waste in agency office space acquisition programs
    Finally, the Committee identified specific and costly 
examples of waste in agency office space acquisitions that 
indicated more oversight is needed. For example, in 2010, the 
Securities and Exchange Commission (SEC) entered into a sole 
source lease for 900,000 square feet of office space with an 
option to lease 500,000 additional square feet at Constitution 
Center located at 7th and D Streets, SW, in Washington, D.C. 
The $556 million lease was ``negotiated'' in three business 
days and not long after it was signed questions were raised 
regarding whether the SEC needed the space. Following reports 
of the lease agreement, the SEC IG initiated an investigation. 
On May 16, 2011, the SEC IG concluded its investigation and 
released the report to the Subcommittee on Economic 
Development, Public Buildings and Emergency Management.\11\ It 
was determined that none of the office space was needed by the 
SEC even though the taxpayer remained on the hook for $556 
million. Since that time, the GSA and SEC had to work to 
backfill the space with other agencies to mitigate SEC's costly 
mistake.
---------------------------------------------------------------------------
    \11\Improper Actions Relating to the Leasing of Office Space, 
Report of Investigation, Office of the Inspector General, U.S. 
Securities and Exchange Commission, May 16, 2011 (OIG-553).
---------------------------------------------------------------------------
    The Nuclear Regulatory Commission (NRC) is another example 
of wasteful office acquisition practices. Since 2007, the NRC 
has expanded its office space holdings significantly beyond the 
cost and square footage limitations authorized by the 
Committee. Specifically, in 2007 the Committee authorized a 10-
year lease of 120,000 rentable square feet for a total cost of 
$38 million in order to house the NRC's projected increase in 
staff. Instead the NRC circumvented the Committee's normal 
authorization process and obtained an authorization in the 
fiscal years 2008 and 2009 appropriations bills that contained 
no limitation on cost or size. As a result, the GSA, on behalf 
of the NRC, acquired a new, built to suit 358,000 rentable 
square foot building costing over $350 million dollars over 15 
years, including tenant improvements and parking. The new 
building was the third building near its main headquarters in 
Maryland, in addition to satellite offices.
    Despite the new $350 million building and no increase in 
staffing, the GSA submitted a request for the Committee to 
approve renewal of the lease for one of the other buildings at 
NRC's headquarters. If the Committee had authorized the lease 
renewal as requested, the NRC's space utilization rate would 
have worsened, contrary to the direction of other agencies. Had 
the NRC followed the limitations established by the Committee 
in 2007, today, it would have the amount of space it actually 
needs. As a result, the Committee required the NRC to 
relinquish space in its existing portfolio in order to renew 
its expiring lease. The Food and Drug Administration (FDA), 
which had expiring leases in the area, will backfill the 
vacated NRC facility and significantly improve the overall 
utilization rate of the NRC headquarters facilities.

                                Hearings

    The Committee, including the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management, held 
10 hearings on subjects related to matters contained in H.R. 
2612 during the 111th, 112th and 113th congresses. In 
particular, the Committee held the following hearings:
    On May 25, 2010 the Subcommittee held a hearing on a GAO 
report on the construction of Federal Courthouses. This hearing 
focused on the findings of the GAO on its review of the 33 
federal courthouses built between 2000 and 2010.
    On June 16, 2011 the Subcommittee held a hearing focused on 
the SEC's management of its independent authority to lease 
space and, in particular, the Subcommittee examined issues 
detailed in a May 16, 2011, SEC Inspector General's report 
related to SEC's lease procurement of 900,000 square feet of 
space in the District of Columbia under a 10-year lease worth 
over $500 million.
    On July 6, 2011, the Subcommittee held a hearing on the 
SEC's management of its independent authority to lease space 
and, in particular, the Subcommittee examined issues detailed 
in a May 16, 2011, SEC Inspector General's report related to 
SEC's lease procurement of 900,000 square feet of space in the 
District of Columbia under a 10-year lease worth over $500 
million.
    On November 4, 2011, the Subcommittee held a hearing on the 
justification of a third courthouse in Los Angeles, California 
including the size, scope, compliance with courtroom sharing 
guidelines, and cost implications of the entire courthouse 
complex in Los Angeles.
    On April 17, 2012, the Subcommittee held a hearing on the 
GSA's waste of taxpayer dollars on a lavish Western Regional 
Conference (WRC), its ``Hats Off'' employee rewards program, 
and other waste and abuse of taxpayer dollars.
    On August 1, 2012, the Subcommittee held a hearing on the 
mismanagement and wasteful spending of the GSA. Specifically, 
the hearing examined additional information received on the GSA 
conferences, travel and bonuses as well as the GSA's decision 
to enter into a $350 million lease without Committee 
authorization.
    On August 6, 2012, the Subcommittee held a hearing on the 
costs to the taxpayer of underperforming or vacant assets and 
the overbuilding of federal courthouses.
    On August 17, 2012, the Subcommittee held a hearing on the 
justification of a third courthouse in Los Angeles, California, 
the cost implications of the entire courthouse complex in Los 
Angeles, and review of the viability of the GSA's proposal to 
exchange the Spring Street Courthouse for construction of a new 
federal office building.
    On April 17, 2013, the Full Committee held a hearing on the 
results of the GAO's review of the Judiciary's 5-year 
courthouse construction plan and whether additional federal 
courthouses are justified.
    On May 22, 2013, the Subcommittee held a hearing on efforts 
by federal agencies to freeze and reduce their real estate 
footprint.

                 Legislative History and Consideration

    On July 8, 2013, Representative Lou Barletta introduced 
H.R. 2612, a bill to amend title 40, United States Code, to 
improve the functioning and management of the Public Buildings 
Service of the General Services Administration.
    On July 10, 2013, the Committee on Transportation and 
Infrastructure met in open session and ordered the bill 
reported favorably to the House by voice vote with a quorum 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no record votes taken in connection 
with consideration of H.R. 2612 or ordering the measure 
reported. A motion to order H.R. 2612 reported favorably to the 
House was agreed to by voice vote with a quorum present.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 2612 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 25, 2013.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2612, the Public 
Buildings Savings and Reform Act of 2013.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2612--Public Buildings Savings and Reform Act of 2013

    H.R. 2612 would amend federal law regarding the management 
of the General Services Administration (GSA). The bill would 
set maximum rental rates that the government could pay for 
leases of buildings, limit the acquisition of new federal 
property, set specific requirements for the construction of 
federal courthouses, set restrictions on bonuses for GSA 
employees, limit the authority of other agencies to lease real 
property, and require GSA to set utilization rates for federal 
buildings. Finally, H.R. 2612 would require GSA to prepare a 
number of reports for the Congress.
    Based on information from GSA, CBO estimates that 
implementing H.R. 2612 would cost $17 million over the 2014-
2018 period, assuming appropriation of the necessary amounts. 
Those costs would result primarily from the requirement that 
GSA expand its current analysis of maximum rental rates, which 
currently covers only the Washington, D.C., Metropolitan area, 
to include approximately 1,400 real estate markets around the 
country. Other provisions of the bill would codify a number of 
practices currently being undertaken by the federal government, 
including freezing the size of existing real estate assets 
pursuant to guidance from the Office of Management and Budget 
(OMB). Other current practices include having agencies annually 
submit their overall approach to real property usage and 
spending to OMB, and promoting co-location and consolidation 
among agencies. Enacting H.R. 2612 would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    Currently, GSA spends more than $5 billion annually from 
the Federal Building Fund to lease almost 200 million square 
feet of space for federal agencies. In addition, the most 
recent Five-Year Courthouse Project Plan as approved by the 
U.S. Judicial Conference lists 12 courthouse projects currently 
underway that involve more than $1 billion in total 
construction costs. By establishing maximum rental rates and 
imposing requirements for judges to share courtroom facilities, 
implementing H.R. 2612 could lead to significant savings for 
construction, leasing, and operations and maintenance in the 
future. However, because of the length of most leases (five to 
20 years) and the time required to complete courthouse 
construction (seven years or more), we expect that any cost 
savings over the next five years from implementing this 
legislation would be small.
    H.R. 2612 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contacts for this estimate are Maggie 
Morrissey and Matthew Pickford. The estimate was approved by 
Theresa Gullo, Deputy Assistant Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to amend 
title 40, United States Code, to improve the functioning and 
management of the Public Buildings Service of the General 
Services Administration.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    No provision of H.R. 2612 establishes or reauthorizes a 
program of the Federal government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 2612 does not 
specifically direct the completion of any specific rule makings 
within the meaning of section 551 of title 5, United States 
Code.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 2612 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation

Section 1. Short title

    This section establishes the short title as the ``Public 
Buildings Savings and Reform Act of 2013''.

Section 2. Freeze the footprint

    For the next four years, this section requires any 
prospectus for new space to show a corresponding offset and 
freezes the current General Services Administration (GSA) real 
estate footprint to FY2012 baseline levels. The Committee 
intends that the baseline be calculated based on the GSA's FY 
2012 baseline in addition to the baselines of agencies included 
from section 11.

Section 3. Minimizing costs of leased space

    This section requires the GSA to notify the Committee when 
the GSA enters into below-prospectus leases with rental rates 
higher than the standard rental rate cap and requires the GSA 
to notify the Committee before entering into any lease-
construction agreements. This section is not to be construed as 
requiring the GSA to develop and establish standard rental rate 
caps in geographical areas in which it has not already done so.

Section 4. Reports on leases

    This section requires the GSA to provide a list each year 
to the Committee detailing all the leases signed by the GSA for 
the previous fiscal year.

Section 5. Zero-based space justification

    This section requires the GSA to justify in project 
prospectuses submitted to the Committee the need for the total 
space requested.

Section 6. Reducing costs related to courthouses

    This section restricts the GSA's authority to construct 
courthouses unless a minimum amount of courtroom sharing is 
incorporated in the design. This section also establishes the 
minimum amount of courtroom sharing among judges. This section 
limits how future new courthouses are constructed by the GSA. 
It is not intended as a mandate on Federal judges. In addition, 
this section only applies to future construction of new 
courthouses.

Section 7. Internship program review

    This section directs the Inspector General of the GSA to 
review the Public Buildings Service's (PBS) internship programs 
including costs, value added to the Public Buildings Service, 
recommendations on improvements, and compliance with Federal 
hiring laws and practices. While the Committee understands the 
GSA has made changes to its internship programs, the intent of 
this section is to have an independent review of those 
programs, particularly as used by the PBS.

Section 8. Bonuses and conferences

    This section establishes a moratorium on Senior Executive 
Service bonuses until the GSA reports to the Committee the 
results of its review of the bonus programs and its plans to 
address identified problems. This section requires the Public 
Buildings Service to report to the Committee on conferences 
hosted by the PBS.

Section 9. Administrative cost budgeting

    This section requires the GSA to submit a detailed budget 
for the Public Building Service's administrative costs for each 
fiscal year and restricts the Public Building Service from 
using Federal Buildings Fund monies for such purposes unless 
specifically authorized.

Section 10. Limitation on authorizations

    This section would sunset Committee authorizations of 
prospectus projects if the GSA fails to initiate a project 
within 5 years of such authorizations.

Section 11. Limitation on leasing authorities

    This section rescinds the independent leasing authority of 
other agencies, except for national security reasons or 
properties of the VA, creates a 5 year pilot program to allow 
the GSA to delegate the procurement of leases to other agencies 
so long as all other requirements are met, such as the 
prospectus process, and requires the GSA to report to the 
Committee on the pilot program.

Section 12. Utilization rates and housing plans

    This section requires the GSA to develop and implement a 
method of tracking actual utilization of space and requires the 
GSA and tenant agencies to certify the actual number of 
personnel housed in each building. This section also requires 
the GSA to submit to the Committee the Real Property and Cost 
Savings and Innovation Plans the OMB required all agencies to 
complete on their space strategy.

Section 13. Elimination of project escalations

    This section requires the GSA to notify the Committee if a 
project cost exceeds 5 percent of what was authorized or varies 
in scope and size of more than 5 percent. This section also 
limits any variation in scope or size to 10 percent.

Section 14. Report of public buildings service activities

    This section requires the GSA to report to the Committee in 
one year on the impact of its activities in various areas and 
in reducing costs.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 40, UNITED STATES CODE

           *       *       *       *       *       *       *

SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES

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CHAPTER 5--PROPERTY MANAGEMENT

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SUBCHAPTER V--OPERATION OF BUILDINGS AND RELATED ACTIVITIES

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Sec. 592. Federal Buildings Fund

  (a) * * *

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  (c) Uses.--
          (1) * * *

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          (5) Exception for administrative expenses.--
        Notwithstanding paragraph (1), deposits in the Fund may 
        not be used for administrative expenses of the Public 
        Buildings Service unless an amount specified for such 
        expenses is specifically authorized for a given fiscal 
        year.

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  (g) Moratorium on Bonuses.--No funds in the Federal Buildings 
Fund may be available for bonuses, performance awards, or 
similar expenditures for a member of the Senior Executive 
Service, until the Administrator of General Services submits a 
report to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Environment 
and Public Works of the Senate detailing--
          (1) the findings and conclusions of a review of the 
        Public Building Service's system of awarding bonuses 
        and performance awards;
          (2) actions to be taken by the Administrator to 
        improve the system and ensure efficiency and 
        effectiveness; and
          (3) a description of how the actions identified will 
        resolve any inefficiencies identified.

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SUBTITLE II--PUBLIC BUILDINGS AND WORKS

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                            PART A--GENERAL

         CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

Sec.
3301. Definitions and nonapplication.
     * * * * * * *
3317. Offsets and freeze of space inventory.
3318. Reports on leases.
3319. Reducing costs related to courthouses.
3320. Restrictions on conferences and travel.
3321. Limitation on leasing authority of other agencies.
3322. Utilization rates.

Sec. 3301. Definitions and nonapplication

  (a) Definitions.--In this chapter--
          (1) * * *

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          (5) Maximum rental rate.--The term ``maximum rental 
        rate'' means the maximum rate, by rentable square feet 
        estimated by the Administrator of General Services for 
        the leasing of commercial space for purposes of a 
        public building in a given geographical location.
          [(5)] (6) Public building.--The term ``public 
        building''--
                  (A) * * *

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          [(6)] (7) United states.--The term ``United States'' 
        includes the States of the United States, the District 
        of Columbia, Puerto Rico, and the territories and 
        possessions of the United States.

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Sec. 3307. Congressional approval of proposed projects

  (a) * * *
  (b) Transmission to Congress of Prospectus of Proposed 
Project.--To secure consideration for the approval referred to 
in subsection (a), the Administrator of General Services shall 
transmit to Congress a prospectus of the proposed facility, 
including--
          (1) * * *

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          (6) a statement of rents and other housing costs 
        currently being paid by the Government for federal 
        agencies to be housed in the building to be 
        constructed, altered, or acquired, or the space to be 
        leased; [and]
          (7) with respect to any prospectus for the 
        construction, alteration, or acquisition of any 
        building or space to be leased, an estimate of the 
        future energy performance of the building or space and 
        a specific description of the use of energy efficient 
        and renewable energy systems, including photovoltaic 
        systems, in carrying out the project[.]; and
          (8) with respect to any prospectus, including for 
        replacement space, lease renewal, or lease extension, 
        the Administrator shall include a justification for 
        such space, including an explanation of why such space 
        could not be consolidated or co-located into other 
        owned or leased space.
  (c) Increase of Estimated Maximum Cost.--The estimated 
maximum cost of any project approved under this section as set 
forth in any prospectus may be increased by an amount equal to 
any percentage increase, as determined by the Administrator, in 
construction or alteration costs from the date the prospectus 
is transmitted to Congress. The increase authorized by this 
subsection may not exceed 10 percent of the estimated maximum 
cost. The Administrator shall notify, in writing, the Committee 
on Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate of any increase of more than 5 percent of 
an estimated maximum cost or of any increase or decrease in the 
scope or size of a project of 5 or more percent. Such 
notification shall include an explanation regarding any such 
increase or decrease. The scope or size of a project shall not 
increase or decrease by more than 10 percent unless an amended 
prospectus is submitted and approved pursuant to this section.

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  (g) Limitation on Leasing Certain Space.--
          (1) * * *

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          (3) Restriction on below-prospectus level.--
                  (A) Restriction on rental rate.--The 
                Administrator may not lease space at an amount 
                below the average annual rental rate thresholds 
                established pursuant to subsections (a) and (h) 
                and that exceeds the maximum rental rate 
                established by the Administrator for the 
                respective geographical location, unless the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives and the 
                Committee on Environment and Public Works of 
                the Senate are notified by the Administrator in 
                writing at least 10 days before the execution 
                of such lease.
                  (B) Annual reports.--The Administrator shall 
                submit, on an annual basis, to the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives and the Committee on 
                Environment and Public Works of the Senate a 
                report detailing the maximum rental rates 
                established by the Administrator by 
                geographical location.
          (4) Restriction on other below-prospectus level 
        projects.--Not less than 30 days before entering into 
        any lease-construction agreement, regardless of the 
        threshold amounts established pursuant to subsections 
        (a) and (h), the Administrator shall notify the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives and the Committee on 
        Environment and Public Works of the Senate, in writing, 
        of the intention to enter into such agreement and 
        include in the notification details of the project and 
        any associated information.

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  (i) Budget Proposal of Administrative Expenses.--
          (1) Proposed budget.--Not later than the date that 
        the President submits the budget request to Congress 
        pursuant to section 1105 of title 31, United States 
        Code, the Administrator of General Services shall 
        submit a proposed budget for the Public Buildings 
        Service to the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Environment and Public Works of the 
        Senate, and the Committees on Appropriations of the 
        House of Representatives and the Senate detailing all 
        proposed administrative expenses for such Service for 
        the following fiscal year.
          (2) Specifics of budget proposal.--Such proposed 
        budget shall include the following:
                  (A) A breakdown of proposed administrative 
                expenses of the Public Buildings Service and 
                the expenses of the previous fiscal year, 
                including a breakdown of object classification 
                and subclassification to include salaries, 
                bonuses, travel and transportation, training, 
                and conferences.
                  (B) A breakdown as described in subparagraph 
                (A) for the Public Buildings Service 
                headquarters, Commissioner's office, and each 
                of the regional offices.
                  (C) A breakdown of proposed staffing levels, 
                including the number of full-time equivalent 
                positions and the number of Federal employees 
                by job classification and title of the Public 
                Buildings Service, the Service headquarters, 
                Commissioner's office, and the regional 
                offices, and the numbers for the same for the 
                previous fiscal year.
                  (D) A detailed justification for any proposed 
                increase in administrative expenses or 
                staffing.
                  (E) A justification for the total amount of 
                administrative expenses.
          (3) Administrative cost categories.--The budget 
        proposal information described in paragraph (2) shall 
        provide the required information within the following 
        administrative cost categories:
                  (A) Building Operations and Maintenance, 
                including cleaning, utilities and fuels, and 
                maintenance.
                  (B) Salaries and Expenses, including other 
                building services, space acquisition, staff 
                support, and information technology services.
  (j) Expiration of Committee Resolutions.--Unless a lease is 
executed or a construction, alteration, repair, design, or 
acquisition project is initiated within 5 years of the 
resolution approvals adopted by the Committee on Transportation 
and Infrastructure of the House of Representatives or the 
Committee on Environment and Public Works of the Senate 
pursuant to subsection (a), such resolutions shall be deemed 
expired. This subsection shall only apply to resolutions 
approved after the date of enactment of this subsection.

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Sec. 3317. Offsets and freeze of space inventory

  (a) Information in Prospectus.--Any prospectus that proposes 
new space, whether leased or owned, transmitted pursuant to 
section 3307(b) for each of fiscal years 2014, 2015, 2016, and 
2017 shall contain information outlining the details of the 
elimination of at least a corresponding amount of space.
  (b) Freezing the Real Estate Footprint.--On an annual basis, 
the Administrator shall not increase the size or amount of its 
real property inventory, leased or owned, as compared to its 
fiscal year 2012 real property baseline, except in those years 
in which space offsets have been specifically identified or for 
emergency or national security purposes as determined by the 
President.

Sec. 3318. Reports on leases

  Not later than December 31 of each year, the Administrator of 
General Services shall submit a list to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate of all leases, including lease-construction 
agreements, entered into by the General Services Administration 
for the previous fiscal year. For each lease, the list shall 
detail the size of the space, location, tenant agency or 
agencies, total annual rental rate, and the authorized annual 
rental if such rental rate exceeds the annual threshold amounts 
set forth in section 3307.

Sec. 3319. Reducing costs related to courthouses

  (a) Limitation on New Courthouses.--The Administrator of 
General Services may not commence construction of any new 
courthouse if--
          (1) construction has not begun on or before the date 
        of enactment of this section; and
          (2) the design and construction of the new courthouse 
        fails to comply, at a minimum, with the courtroom 
        sharing requirements described in subsection (b).
  (b) Courtroom Sharing Requirements Defined.--The term 
``courtroom sharing requirements'' means--
          (1) in courthouses with 10 or more active district 
        judges, 2 courtrooms per 3 active district judges, 
        except such courthouses may contain not less than 9 
        courtrooms for active district judges;
          (2) in courthouses with 3 or more bankruptcy judges, 
        1 courtroom per 2 bankruptcy judges;
          (3) in courthouses with 3 or more senior district 
        judges, 1 courtroom per 2 senior district judges; and
          (4) in courthouses with 3 or more magistrate judges, 
        1 courtroom per 2 magistrate judges.
  (c) United States Courts Design Guide.--Not later than 180 
days after the date of enactment of this section, the Design 
Guide for courthouses shall be updated to incorporate courtroom 
sharing requirements to the maximum extent practicable.
  (d) Utilization.--If a new courthouse will add capacity in 
the inventory of the General Services Administration, existing 
space in the same courthouse complex must be fully utilized or 
relinquished from the inventory of the General Services 
Administration.

Sec. 3320. Restrictions on conferences and travel

  (a) Reports Regarding Conferences.--Not later than the end of 
each fiscal year, the Administrator of General Services shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Environment 
and Public Works of the Senate a report on conferences proposed 
to be hosted by the Public Buildings Service for the subsequent 
fiscal year. The report shall include the following for each 
proposed conference:
          (1) The purpose of the conference.
          (2) A detailed budget for the conference, including 
        related travel, lodging, and per diem costs.
          (3) The expected number of participants, including 
        from the Public Buildings Service.
          (4) The location and length of the conference.
          (5) Any expected non-Federal funding or sponsorships.
  (b) Conference Review.--Not later than 60 days after each 
fiscal year, the Administrator shall submit a report to the 
congressional committees identified in subsection (a) including 
the following:
          (1) The actual expenditures and costs of each 
        conference and a comparison to the budget submitted 
        pursuant to subsection (a).
          (2) The actual number of participants of the Public 
        Buildings Service in each conference and associated 
        travel, lodging, and per diem costs.
          (3) An agenda of each conference programming and 
        events.

Sec. 3321. Limitation on leasing authority of other agencies

  (a) In General.--Notwithstanding any other provision of law, 
an executive agency may not lease space for the purposes of a 
public building as defined under section 3301, except as 
provided under section 585 and the provisions of this chapter.
  (b) Public Building.--For the purposes of this section, the 
term ``public building'' includes leased space.
  (c) Exclusions.--This section shall not apply to--
          (1) properties that are excluded for reasons of 
        national security by the President; and
          (2) properties of the Department of Veterans Affairs.
  (d) Construction.--Nothing in this section shall be construed 
as creating new authority for executive agencies to enter into 
leases.
  (e) Delegation Pilot.--With respect to executive agencies 
covered by subsection (a)--
          (1) the Administrator of General Services may 
        delegate authority to manage the procurement of leases 
        to an appropriate executive agency if the Administrator 
        determines that such agency has the appropriate 
        expertise and ability to do so and such delegation 
        promotes efficiency and economy;
          (2) the delegation under this subsection does not 
        exempt the Administrator or the agency to which the 
        delegation is made from any other provision of this 
        chapter, including sections 592 and 3307; and
          (3) the delegation authority under this subsection 
        shall terminate on December 31, 2018.
  (f) Report.--Not later than 6 months before the termination 
date set forth in subsection (e)(3), the Administrator shall 
submit a report to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate. The 
report shall include an analysis of the effectiveness of the 
delegation authority provided in this section, including--
          (1) a comparison of the costs and terms associated 
        with leases procured under the delegation authority to 
        the leases procured by the Public Buildings Service;
          (2) whether procurements delegated were consistent 
        with authorization limitations and parameters; and
          (3) recommendations on improvements to the delegation 
        authority and whether such authority should be 
        extended.

Sec. 3322. Utilization rates

  (a) Measurement of Space Utilization.--Not later than 6 
months after the date of enactment of this section, the 
Administrator of General Services shall develop and implement a 
method of measuring actual utilization rates of its owned and 
leased inventory of public buildings space and a plan for 
incorporating such utilization rates into performance metrics 
for owned and leased buildings by region.
  (b) Space Utilization.--Any method developed and implemented 
pursuant to subsection (a) shall be based on actual utilization 
by rentable square feet per person.
  (c) Report.--Not later than 1 year after the date of 
enactment of this section and annually thereafter, the 
Administrator shall report to the Committee on Transportation 
and Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate 
utilization rates measured pursuant to subsection (a) and 
performance metrics for owned and leased buildings.
  (d) Certification.--Not later than one year after the date of 
enactment of this section and every year thereafter, the 
Administrator and tenant Federal agencies shall certify, in 
writing, to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Environment and Public Works of the Senate the actual number of 
personnel housed in each building, leased or owned, in the 
inventory of the General Services Administration. Such written 
certifications shall detail the number of Federal employees, 
temporary employees, contractors, and any other non-Federal 
employees.
  (e) Database.--
          (1) In general.--The Administrator shall maintain a 
        database of utilization rates and metrics developed 
        pursuant to this section.
          (2) Accessibility.--The database described in 
        paragraph (1) shall be made available upon request by 
        congressional committees.
          (3) Exclusions.--For reasons of national security, 
        the President may exclude any property from the 
        requirements of this subsection.
  (f) Agency Space Plans.--Not later than 60 days after the 
date of enactment of this section, the Administrator shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Environment 
and Public Works of the Senate all agency Real Property Cost 
Savings and Innovation Plans submitted pursuant to the 
MANAGEMENT PROCEDURES MEMORANDUM NO. 2013-02 of the Office of 
Management and Budget. The Administrator shall submit 
subsequent updates of the Real Property Cost Savings and 
Innovation Plans or any successor plans to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate not later than 60 days after their receipt 
by the Administrator.

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