I 
115TH CONGRESS 
2D SESSION 
H. R. 6194 
To reduce costs of Federal real estate, improve building security, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2018 
Mr. BARLETTA introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittee on Financial Services, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To reduce costs of Federal real estate, improve building 
security, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Real Estate Assets 
and Leasing Reform Act of 2018’’ or ‘‘REAL Reform Act 
of 2018’’. 
SEC. 2. STREAMLINED LEASING PILOT PROGRAM. 
(a) EXECUTION OF LEASES.—The Administrator of 
General Services shall establish and conduct a pilot pro-
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gram to execute lease agreements using alternative proce-
dures pursuant to authority provided under section 585 
of title 40, United States Code, and pursuant to the provi-
sions of this section. 
(b) GOALS OF PROCEDURES.—The goals of the alter-
native procedures are— 
(1) reducing the costs to the Government of 
leased space, including— 
(A) executing long-term leases with firm 
terms of 10 years or more and reducing costly 
holdover and short-term lease extensions, in-
cluding short firm term leases; 
(B) improving office space utilization rates 
of Federal tenants; and 
(C) streamlining and simplifying the leas-
ing process to take advantage of real estate 
markets; and 
(2) significantly reducing or eliminating the 
backlog of expiring leases over the next 5 years. 
(c) LEASEHOLD INTERESTS IN REAL PROPERTY.— 
(1) SIMPLIFIED
PROCEDURES.—Notwithstand-
ing subsection (b) of section 3305 of title 41, United 
States Code, but otherwise in accordance with such 
section, the Administrator shall provide special sim-
plified procedures for acquisitions of leasehold inter-
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ests in real property at rental rates that do not ex-
ceed the simplified lease acquisition threshold, as de-
fined in paragraph (2). The rental rate under a 
multiyear lease does not exceed the simplified lease 
acquisition threshold if the average annual amount 
of the rent payable for the period of the lease does 
not exceed such threshold. 
(2) ACQUISITION
THRESHOLD.—For purposes 
of this section, the simplified lease acquisition 
threshold is $500,000. 
(d) CONSOLIDATED LEASE PROSPECTUSES.—The 
Administrator may, when acquiring leasehold interests 
subject to section 3307 of title 40, United States Code, 
transmit, pursuant to subsection (b) of such section, to 
the committees designated in such section for approval of 
a prospectus to acquire leased space, and waive the re-
quirements pursuant to paragraphs (3) and (6) of section 
3307(b), subject to the following requirements: 
(1) COST PER SQUARE FOOTAGE.—The cost per 
square footage does not exceed the maximum pro-
posed rental rate designated for the respective geo-
graphical area. 
(2) SPACE
UTILIZATION.—The Administrator 
ensures the overall space utilization rate is 170 usa-
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ble square feet per person or less based on actual 
agency staffing levels when occupied. 
(3) LEASE TERM.—The lease term, including a 
firm lease term of 10 years or greater. 
(4) GEOGRAPHIC LOCATION.—The geographical 
location is identified as having a large amount of 
square footage of Federal office space and lease 
turnover and will likely result in providing for the 
ability, on a timely basis, of the agency to consoli-
date space effectively or meet any requirements for 
temporary or interim space required for planned 
consolidations. 
(5) 
SUBMARKETS.—Agencies 
may 
consider 
space in submarket locations that meet mission re-
quirements. 
(e) CONSOLIDATIONS GENERALLY.—The Adminis-
trator may consolidate more than one project into a single 
prospectus submitted pursuant to section 3307(b) of title 
40, United States Code, if such consolidation will facilitate 
efficiencies and reductions in overall space and improved 
utilization rates. 
(f) WAIVER AUTHORITY.—The Administrator may— 
(1) waive notice and comment rulemaking, if 
the Administrator determines the waiver is necessary 
to implement this section expeditiously; and 
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(2) carry out the alternative procedures under 
this section as a pilot program. 
(g) REPORTS.— 
(1) ANNUAL REPORTS.—During the period in 
which the pilot program is conducted under this sec-
tion, the Administrator shall submit, annually, to 
the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee 
on Environment and Public Works of the Senate a 
progress report that provides updates on the number 
and square footage of leases expiring in the 5-year 
period beginning on the date of enactment of this 
Act, by agency and region, and which shall include 
for the expiring leases— 
(A) an average of the lease terms, includ-
ing firm terms, for leases executed; and 
(B) the percentage of leases managed in- 
house or through the use of commercial real es-
tate leasing services. 
(2) FINAL REPORT.—Not later than 180 days 
after termination of the pilot program, the Adminis-
trator shall submit a final report to the Committee 
on Transportation and Infrastructure of the House 
of Representatives and the Committee on Environ-
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ment and Public Works of the Senate. The final re-
port shall include— 
(A) a review and evaluation of the lease 
agreements executed under the alternative pro-
cedures established pursuant to this section in 
comparison to those agreements not executed 
pursuant to the alternative procedures; 
(B) recommendations on any permanent 
changes to the General Services Administra-
tion’s leasing authority; and 
(C) a progress evaluation in meeting the 
goals described in subsection (b). 
(h) TERMINATION.—The authorities under this sec-
tion shall terminate on December 31, 2023. 
SEC. 3. EXCHANGE AUTHORITY. 
(a) LIMITATION ON EXCHANGE AUTHORITY.—Sec-
tion 3307(a) of title 40, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘(including 
by exchange)’’ after ‘‘acquire’’; and 
(2) by adding at the end the following: 
‘‘(4) An appropriation for any costs and ex-
penses associated with administering an acquisition 
by exchange involving real property or in-kind con-
sideration, including services, with a fair market 
value of $3,095,000 or more.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall not apply to projects in which a procure-
ment has already begun. 
SEC. 4. ZERO-BASED SPACE JUSTIFICATION. 
Section 3307(b) of title 40, United States Code, is 
amended— 
(1) in paragraph (5), by inserting before the 
semicolon the following: ‘‘, including a cost compari-
son between leasing space or constructing space’’; 
(2) in paragraph (7) by striking ‘‘and’’ at the 
end; 
(3) in paragraph (8) by striking the period and 
inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(9) with respect to any prospectus, including 
for replacement space, lease renewal, or lease exten-
sion, the Administrator shall include a justification 
for such space, including an explanation of why such 
space could not be consolidated or colocated into 
other owned or leased space.’’. 
SEC. 5. ELIMINATING PROJECT ESCALATIONS. 
Section 3307(c) of title 40, United States Code, is 
amended by adding at the end the following: ‘‘The Admin-
istrator shall notify, in writing, the Committee on Trans-
portation and Infrastructure of the House of Representa-
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tives and the Committee on Environment and Public 
Works of the Senate of any increase of more than 5 per-
cent 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 re-
garding 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.’’. 
SEC. 6. LIMITATION ON AUTHORIZATIONS. 
Section 3307 of title 40, United States Code, is 
amended by adding at the end the following: 
‘‘(i) EXPIRATION OF COMMITTEE RESOLUTIONS.— 
Unless a lease is awarded or a construction, alteration, 
repair, design, or acquisition project is initiated not later 
than 5 years after the resolution approvals adopted by the 
Committee on Transportation and Infrastructure of the 
House of Representatives or the Committee on Environ-
ment and Public Works of the Senate pursuant to sub-
section (a), such resolutions shall be deemed expired. This 
subsection shall only apply to resolutions approved after 
the date of enactment of this subsection.’’. 
SEC. 7. LIMITATION ON DISCOUNTED PURCHASE OPTIONS. 
Section 585 of title 40, United States Code, is 
amended by adding at the end the following: 
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‘‘(d) Any bargain-price option to purchase at less 
than fair market value contained in any lease agreement 
entered into on or after January 1, 2018, pursuant to this 
section may be exercised only to the extent specifically pro-
vided for in subsequent appropriation Acts or other Acts 
of Congress.’’. 
SEC. 8. SIMPLIFIED REFORMS. 
(a) IN GENERAL.—For the purpose of section 863 
of Public Law 110–417, an individual acquisition for com-
mercial leasing services shall not be construed as a pur-
chase of property or services if such individual acquisition 
is made on a no cost basis and pursuant to a multiple 
award contract awarded in accordance with requirements 
for full and open competition. 
(b) AUDIT.—The Comptroller General of the United 
States shall— 
(1) conduct biennial audits of the General Serv-
ices Administration National Broker Contract to de-
termine— 
(A) whether brokers selected under the 
program provide lower lease rental rates than 
rates negotiated by General Services Adminis-
tration staff; and 
(B) the impact of the program on the 
length of time of lease procurements; 
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(2) conduct a review of whether the application 
of section 863 of Public Law 110–417 to acquisi-
tions for commercial leasing services resulted in 
rental cost savings for the Government during the 
years in which such section was applicable prior to 
the date of enactment of this section; and 
(3) not later than September 30, 2020, and 
September 30, 2022, 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 that— 
(A) summarizes the results of the audit 
and review required by paragraphs (1) and (2); 
(B) includes an assessment of whether the 
National Broker Contract provides greater effi-
ciencies and savings than the use of General 
Services Administration staff; and 
(C) includes recommendations for improv-
ing General Services Administration lease pro-
curements. 
(c) TERMINATION.—This section shall terminate on 
December 31, 2023. 
SEC. 9. DEPARTMENT OF ENERGY HEADQUARTERS RE-
PLACEMENT. 
(a) SALE OF CERTAIN PROPERTY.— 
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(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Administrator 
of General Services is directed to sell, exchange, or 
some combination thereof, a portion of the Forrestal 
Complex necessary to generate the funds necessary 
to construct a new Department of Energy head-
quarters on Government-owned land in a manner 
consistent with the SW Ecodistrict Plan if the Ad-
ministrator determines that the new Department of 
Energy headquarters can be constructed with no net 
costs to the Government. 
(2) DEFINITIONS.—For purposes of this sec-
tion, the following definitions apply: 
(A) DEPARTMENT OF ENERGY FORRESTAL 
COMPLEX.—The term ‘‘Forrestal Complex’’ 
means the land, including the buildings and 
other improvements thereon, that— 
(i) subject to survey and as deter-
mined by the Administrator, is— 
(I) located in the District of Co-
lumbia; 
(II) generally bounded by Inde-
pendence Avenue, Southwest, 12th 
Street, Southwest, Maryland Avenue, 
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