49–006 

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 


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1See High Risk Series, GAO–13–283, U.S. Government Accountability Office, February 2013. 2Federal Real Property: Progress Made on Planning and Data, but Unneeded Owned and 

Leased Facilities Remain, GAO–11–520T, Apr 6, 2011. 

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. 

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. 

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 


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3Federal 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. 4For FY 2013, a prospectus is required for any project in excess of $2.79 million. 

5On 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. 6 2010 Western Regions Conference, Management Deficiency Report, Public Buildings Service, 

General Services Administration, Office of the Inspector General, April 2, 2012. 

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. 

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

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. 

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. 


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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. 8Such as set-up and take-down time for courtroom uses, public tours and other events. 

9GAO–10–417. 

10Federal Courthouses: Recommended Construction Projects Should Be Evaluated under New 

Capital-Planning Process, U.S. General Accountability Office, GAO–13–263, April 11, 2013. 

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. 

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. 

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 


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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). 

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. 

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 


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backfill the space with other agencies to mitigate SEC’s costly mistake. 

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 includVerDate Sep 11 2014 01:48 Dec 18, 2014 Jkt 049006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR656.XXX HR656

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ing 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. 


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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 


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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. 


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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. 


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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 


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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 

* * * * * * * 

CHAPTER 5—PROPERTY MANAGEMENT 

* * * * * * * 

SUBCHAPTER V—OPERATION OF BUILDINGS AND RELATED 

ACTIVITIES 

* * * * * * * 

§ 592. Federal Buildings Fund 

(a) * * * 

* * * * * * * 

(c) USES.— 

(1) * * * 

* * * * * * * 

(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. 

* * * * * * * 

(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 


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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. 

* * * * * * * 

SUBTITLE II—PUBLIC BUILDINGS AND WORKS 

* * * * * * * 

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. 

§ 3301. Definitions and nonapplication 

(a) DEFINITIONS.—In this chapter— 

(1) * * * 

* * * * * * * 

(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. 

ø(5)¿ (6) PUBLIC BUILDING.—The term ‘‘public building’’— 

(A) * * * 

* * * * * * * 

ø(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. 

* * * * * * * 

§ 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 


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subsection (a), the Administrator of General Services shall transmit 

to Congress a prospectus of the proposed facility, including— 

(1) * * * 

* * * * * * * 

(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; øand¿ 

(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 projectø.¿; 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. 

* * * * * * * 

(g) LIMITATION ON LEASING CERTAIN SPACE.— 

(1) * * * 

* * * * * * * 

(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 


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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. 

* * * * * * * 

(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. 


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(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. 

* * * * * * * 

§ 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. 

§ 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. 

§ 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 


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(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. 

§ 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. 

§ 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)— 


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(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. 

§ 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.— 


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(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. 

* * * * * * * 

Æ 


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