CRS Report: RS20630 - Surplus Federal Property

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RS20630: Surplus Federal Property

Stephanie Smith

Analyst in American National Government Government and Finance Division

July 14, 2000

Summary

The General Services Administration's (GSA) Office of Property Disposal administers the conveyance of surplus real property that the federal government no longer needs. These properties are made available to state and local governments, public institutions, nonprofit organizations, and the private sector. This report provides a brief overview of the process involved in the conveyance of surplus real property by GSA to public agencies or to private individuals, and will be updated to reflect subsequent policy changes.

Background

The Federal Property and Administrative Services Act of 1949 created new procurement procedures for federal civilian agencies and established the General Services Administration as a central procurement agent.1 Since that time, this enabling law has evolved through amendments to provide GSA with an integrated system of administrative procedures to carry out its federal procurement and supply activities.

GSA's Office of Property Disposal administers the conveyance of surplus real property that the federal government no longer needs. This property may include land, office buildings, warehouses, former post offices, farms, family residences, commercial facilities, or airfields located in the United States, Puerto Rico, the U.S. Virgin Islands, or the U.S. Pacific Territories. GSA strives to find productive uses for the surplus property, which generated approximately $312 million in proceeds in FY1999.2 The property is made available to state and local governments, public institutions, nonprofit organizations, and the private sector.

Conveyance for Public Purposes

When surplus property becomes available, GSA notifies state and local agencies that may be eligible to acquire such property. As authorized by statute, the GSA Administrator has discretion to allow real property to be transferred to public agencies and institutions at discounts of up to 100% of fair market value for the following purposes:

• Public health or educational uses (40 U.S.C. 484);
• Public parks and public recreational areas (40 U.S.C. 484);
• Historic monuments (40 U.S.C. 484);
• Correctional institutions (40 U.S.C. 484);
• Port facilities (40 U.S.C. 484);
• Public airports (49 U.S.C. 47151 and 40 U.S.C.602);
• Wildlife conservation (16 U.S.C. 667);
• Homeless assistance (42 U.S.C. 11411 and 40 U.S.C. 484); and
• Negotiated sales without use restrictions (40 U.S.C. 484).

The interested state or local agency or public institution must respond with a formal application within 20 days of GSA's notification that a property has been determined to be available for public conveyance by an agency head. Based on the property's location, GSA also notifies appropriate regional officials and agencies which may be concerned about the property's ultimate use. GSA reviews each formal application in conjunction with other federal agencies that have an interest in the property's final disposition. Once GSA approves the application, the surplus property is formally conveyed.

Sales to the Public

A property goes to public sale when GSA determines that there is no federal use for the property, or the property is not deemed appropriate for public use conveyance. Properties may be sold to the private sector for fair market value through the competitive bid process. This process may include the use of a sealed bid competition, public auction, or mail auction. A 10% deposit of the total price must be submitted with the bid; deposits are returned to unsuccessful bidders. The winning bidder is required to purchase the property in its current condition, and is also responsible for securing financial arrangements.

Detailed surplus property information may be obtained at the GSA web-site [ http://propertydisposal.gsa.gov/Property/PropForSale ]. Available properties are listed by state, and include dimensions, photos, auction dates, and the names and telephone numbers of the relevant GSA officials. It is also possible to obtain a copy of GSA's bimonthly U. S. Real Estate Sales List by telephone (1-800-472-1313), or by writing the Consumer Information Center, Department 514A, Pueblo, CO 81009.

Footnotes

1 63 Stat. 377; 40 U.S.C. 475 et seq.

2 U.S. General Services Administration, FY2001 Congressional Justifications (Washington: GSA, 2000), p. 9.

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