# Government Accountability Office — B 106190 6 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Agao%3A208de54e9805b4bd ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text m t .-0 +J m s > 0 c5 .-w cn I . 0 GENERAL SERVICES ADMINISTRATION Contents Page AUTOMATED DATA AND TELECOMMUNICATIONS SERVICE Opportunities for improving management of local FEDERAL SUPPLY SERVICE Opportunities for savings in the procurement NATIONAL ARCHIVES AND RECORDSSERVICE Ways to improve records management practices ernment PUBLIC BUILDINGS SERVICE Participation certificates obtainable for long-term telephone 125 125 service 126 126 of tab paper in the Federal sold at higher interest Government bonds rates 128 Gov- 128 130 than those VARIOUS DEPARTMENTSAND AGENCIES Opportunities for reducing the cost of constructing and operating health facilities Improvement needed in use of formal advertising procedures for procurement Need for Federal agencies to improve solid waste management practices Differences in administration of relocation assistance program Revisions needed in financial management policies of the Federal Government's Automatic Data Processing Fund 130 193 199 _ 205 213 215 GENERAL SERVICES ADMINISTRATION AUTOMATED DATA AND TELECOMMUNICATIONS SERVICE Opportunities for of local telephone improving 'service management The Federal Telecommunications System (FTS), which is managed by the General Services Administration (GSA), provides, among its many services, intercity and local telephone service. As part of this telephone service GSA manages over 400 switchboards in the United States. At 153 of these switchboards GSA manages 4,634 local service trunks, costing an estimated $989,000 annually. Periodic traffic studies provide a measure of the traffic volume, in part, determine the number of local service trunks required at which, a switchboard. However, limitations of these studies restricted their usefullness to GSA's management for achieving optimum economical and efficient service and providing it on an equal basis to all customers. GSA and telephone company studies (1) were not performed at all switchboard locations, (2) had not included all local trunks managed by GSA at each location, and (3) sampling periods were too limited at some locations. Also, telephone company studies were not frequent enough to disclose seasonal changes and growth or decline trends. The different methods used to convert traffic volume into trunk requirements produced dissimilar results when applied to the same statistics. GAO estimated that one method would require 78 fewer trunks-For example, costing $25,400 annually-than those proposed by telephone companies using However, telephone company another method at 10 selected switchboards. reports did not include sufficient detailed information for GSA to independently evaluate or recompute the information. GAO proposed that the Administrator methods and procedures for determining with telephone companies for improved (3) instruct regional offices on the conversion to trunk traffic studies, changes, and (4) expand and implement of GSA (1) establish standard trunk requirements, (2) negotiate traffic studies and statistics, evaluation and/or performance of requirements, and implementation of internal control procedures. GSA's response to material included in this report was in general agreement with GAO's findings. GSA is currently preparing a report of (B-146864, Mar. 19, 1973.) actions taken in response to this report. 125 GENERAL FEDERAL SUPPLY Opportunities the procurement SERVICES ADMINISTRATION SERVICE for of savings in tab paper GAO examined into the procedures for procuring marginally punched, continuous forms (tab paper) because an estimated $100 million is spent annually by the Government for tab paper for use with over 6,700 computers at 1,700 locations. GSA is responsible for procuring the Government's tab paper but has delegated authority to the Government Printing Office (GPO) to procure most GSA purchases and stocks six commonly used tab paper of the tab paper. forms. GPO annually awards contracts against which installations place within prescribed dollar limitations, for tab paper not available orders, from GSA stock. The GPO contracts are awarded to all responsive suppliers on a nationwide basis. GAO examined fiscal year 1971 tab paper purchases of $6.5 million that The most favorable prices for tab paper were were made by 45 installations. obtained by six installations purchasing their tab paper in volume under Prices paid by the six installations were about competitive contracts. $500,000, or 22 percent, less than the lowest prices available under the GPO contracts for the same volume of paper. Most year from requirements installations procure their tab paper periodically throughout the the GPO contracts rather than estimating their annual tab paper and purchasing in volume under competitive contracts. Although installations are required to obtain their tab paper from the lowest priced supplier under the GPO contracts, more than half of the installations obtaining tab paper under the GPO contracts had made purchases from other than the lowest priced supplier. On total orders against GPO GAO found that the prices exceeded those of the contracts of $2.2 million, If this condition is representative lowest priced suppliers by $54,000. of all reported orders against GPO contracts totaling $11.8 million for the year ended November 1971, the costs of tab paper were $300,000 more than if purchased from the lowest priced sources. In addition, some installations were purchasing carbon tab paper when narrow-carbon paper may have use. Installations used GPO contracts to purchase $600,000. If narrow-carbon paper had been adopted $600,000 cost could have been reduced by $172,000, To realize the opportunities for savings in Government's tab paper GAO suggested that GSA: --Instruct installations to determine and GSA or GPO use this information competitive contracts or authorize contracts directly. 126 higher priced, widebeen suitable for their wide-carbon paper costing for use in all cases, the or 28 percent. the procurement of the their annual tab paper needs to make volume purchases under the installations to award such GENER4L SERVICES ADMINIST.RATION FEDER4L SUPPLY SERVICE (continued) in conjunction with GPO, a more competitive --Consider, such as making awards of awarding the GPO contracts, used types of tab paper on a geographic basis to the offering the lowest prices for each type of paper or number of multiple suppliers to be awarded contracts basis. method of the more commonly single supplier by limiting the on a nationwide --Instruct heads of departments and agencies to establish procedures for systematic monitoring and internal reviews of recent and ongoing procurements to identify use of other than the lowest priced paper suitable for installations' needs. GSA agreed with our suggestions, but GPO was concerned that the methods GAO had proposed for awarding the GPO contracts would not result in more competition and lower prices. GAO recognizes that other alternatives may should be made to be available. GAO believes, and GSA agrees, that efforts develop a method of awarding the GPO contracts under more competitive conditions. 127 GENERAL NATIONAL ARCHIVES Wavs to uractices imorove records in the Federal SERVICES ADMINISTRATION AND RECORDS SERVICE management Government GAO reviewed the effectiveness Service (NARS) of GSA in improving Government because of the substantial preparation, handling, and storage. costs of paperwork have increased Similarly, the Government's record cubic feet and now total about 30 Records Centers are at an alltime feet. As a result, storage space panded by 30 percent. of the National Archives and Records records management programs throughout the increases in the costs of paperwork GAO estimated that, since 1966, Federal from $8 billion to $15 billion a year. holdings have increased by about 4 million million cubic feet. *Holdings by Federal high and now total over 11.5 million cubic has become critical and may have to be ex- NARS has had limited success in persuading agencies to correct weaknesses in their records management programs. One reason is that NARS identifies needed improvements and recommends rather sweeping changes without showing corresponding savings, a factor of vital concern to agency management. Another reason for the limited success is that NARS has never exercised the authority contained in Public Law 90-620 to report to the President, the Congress, or the Office of Management and Budget (OMB), a particular agency's poor records management program, even though the NARS evaluation teams consistently have found serious weaknesses in agencies' programs. In addition, NARS could be more effective in minimizing the time that records are stored in Federal Records Centers by establishing closer surby developing a better method veillance of agency records control schedules, of evaluating the validity of the record retention periods specified by agenand through better procedures for removing from storage those records cies, that are eligible for disposal. GAO suggested that NARS and GSA: --Point out how agencies NARS recommendations. could save money if --Develop criteria describing circumstances nesses or deficiencies in agency records President, the Congress, or OMB. -- If an agency fails after a reasonable time nesses in its records program on the basis form the President, the Congress, or OMB. --Monitor schedule agencies showing more closely to see that retention periods for all they implement when NARS would report management programs to to of correct serious this criteria, they maintain their records. --Develop, a method to evaluate on a pilot basis, at centers and to provide agencies with feedback lishing more realistic retention periods. 128 would weakthe weakthen in- an up-to-date records usage patterns as a basis for estab- GENERAL SERVICES NATIONAL ARCHIVES AND RECORDS SERVICE --Revise procedures at centers are destroyed promptly. GSA and NARS have suggestions. (B-146743, initiated Aug. 13, ADPIINISTRATION (continued) so that a program 1973.) 129 records to implement eligible all for of destruction the GAO GENERAL PUBLIC BUILDINGS Participation at higher obtainable SERVICES AD~IINISTRATION SERVICE certificates interest rates for long-term sold than those Government bonds Section 5 of Public Law 92-313, dated June 16, 1972, authorized GSA for 3 years to enter into purchase contracts with private developers who GSA would finance and construct public buildings to GSA specifications. would make periodic installment payments during the contract period to amortize construction and financing costs. At the end of the contract period--not to exceed 30 years--title to the building would transfer to the Government. In sponsoring Public Law 92-313, GSA asked the Congress in 1971 for purchase contract authority for 3 years as a stop-gap expedient that would eliminate the construction backlog of about 60 projects estimated to cost about $750 million. These projects had been authorized by the Congress for Federal construction but had not been funded. In addition to the 60 buildings authorized by Public Law 92-313, GSA requested approval in January 1973 for construction and funding, under purchase contract arrangeof three Social Security Administration payment centers estimated to ment, cost $110 million, GSA has been obtaining most of its financing through the sale of 30year participation certificates by the GSA trustee, the First National City Bank of New York. At the time GAO first wrote to GSA on February 27, 1973, about its method of financing, GSA had sold $396 million of participation certificates. By the end of March 1973, GSA had sold another issue of certificates. All together GSA has sold three issues of participation certificates amounting to $522.5 million. The first, amounting to $196.5 million, was sold in increments from October 30 through November 3, 1972, and had interest rates varying from 7.125 to 7.4 percent; the second, amounting to $200 million, was sold on December 13, 1972, and had an interest rate of 7.15 percent; and the third, amounting to $126 million, was sold on The issues were March 14, 1973, and had an interest rate of 7.5 percent. sold at a total discount of about $4.6 million, which resulted in an overall effective interest rate of 7.25 percent on the first and second issues and 7.90 percent on the third issue. Public Law 92-313 and its legislative history are silent concerning the The Comptroller General has financing with participation certificates. Also, ruled, however, that this method is within the framework of the law. the Attorney General has advised GSA that the certificates are general obligations of the United States, backed by its full faith and credit. On the basis of market conditions at the time GSA participation certificates were issued, GAO estimated that the Treasury could have issued longterm Government bonds for about 3/4 of 1 percent less than the effective interest rate for the certificates. The additional interest costs associated with the $522.5 million of participation certificates is about $3.92 million a year, which amounts to $117.6 million for the 30-year term. 130 VARIOUS DEPARTMENTS AND AGENCIES (Department of Commerce; Department of General Services Administration; Department Educat ion, and Welfare; Department of and Veterans Administration) Opportunities constructing for reducing and operating Defense; of Health, Labor; the cost of health facilities GAO undertook a comprehensive Pursuant to a law enacted by Congress, study of the costs of constructing and operating health facilities and reported to the Congress on ways to reduce these costs for facilities built GAO also with assistance provided under the Public Health Service Act. examined ways in which the demand for facilities could be reduced or eliminated. Constructing operating In tunities cilities, fication different and health facilities a November 1972 report to the Congress, GAO identified many opporand operation of health fafor improved planning, construction, including advance analysis of specific health care needs, identiof alternative sources of funds, reuse of building designs, and construction techniques. Hospital planners generally do not evaluate on a life-cycle basis alternative construction techniques, material, designs, and operating systems. Many hospital administrators and architects, in efforts to curb the rising cost of hospital construction, search for obvious savings in initial construction. These initial savings often preclude later savings in operations and maintenance that exceed the initial cost savings. initial hospital To demonstrate construction for detailed --Initial as much built. --Life-cycle incorporating hospital. the impact that certain alternatives and life-cycle costs, GAO selected study. The demonstration showed construction as 8.6 percent costs the costs of the lower than of as much improvement as redesigned those of $10.4 million alternatives the would have on a recently opened that: facility facility would have that was could have been into the redesigned saved been by GAO recommended that the Secretary of HEW (1) compile and publish information on the essential factors to be considered in project planning, (2) explore the feasibility of reusing hospital designs, (3) adopt a common set of construction requirements for HEW-administered programs, (4) develop and disseminate a scientific base of knowledge on construction requirements, and (5) require that the fast-track and total concept approaches be considered for health facility projects assisted under the Public Health Service Act. 193 VARIOUS DEPARTMENTS AND AGENCIES (Department of Commerce; Department of Administration; Department Gene ral Services and Welfare; Department of Education, and Veterans Administration) Defense; of Health, Labor; GAO also recommended that HEW establish the capacity to provide lifecycle cost data to health facility planners and require that applicants for Federal funding justify the use of construction techniques, materials, designs, and operating systems which differ from those recommended by HEW. GAO recommended further that, until HEW establishes the capacity to provide life-cycle cost data to health facility planners, HEW should encourage planners to consider the information presented in this report, along with in identifying the alternatives for local operating conditions and costs, life-cycle analysis that are likely to be the most appropriate for inclusion in the facility. Demand facility for health construction GAO also identified and studied ways in which health facility construction could be avoided by either reducing the demand for such facilities or increasing the productivity of existing facilities. The study showed that the demand for hospitals and, to a lesser extent, other health care facilities could be reduced and that, by more efficiently using existing facilities, millions of dollars in construction costs would not need to be spent. These results could be attained by (1) placing greater emphasis on preventive medicine, (2) making more appropriate use of various types of health care facilities, (3) increasing the use of more efficient and economical medical care delivery systems, (4) using more effective utilization review techniques, (5) changing health insurance incentives that emphasize inpatient care, (6) sharing more hospital services, (7) organizing more efficient and economical health care systems, and (8) strengthening the role and increasing the capabilities of areawide health planning agencies. GAO made a number of recommendations to the Secretary of HEW calling for these changes. In implementing these changes, GAO recommended that HEW solicit the cooperation of other Government agencies, private health organizations, and medical professionals and assume leadership in these areas. Some health care providers have changed traditional health care demand and utilization patterns, decreasing the need to construct acute care and other types of health facilities. The economic benefits emanating from these changes and the means by which such changes have been effected, as discussed in GAO’s report, should be of particular interest to the Congress. Accordingly, GAO recommended that the Congress consider these matters when it considers legislative health care proposals, such as those providing for the reorganization of the existing health care delivery system and for programs on national health insurance. 194 VARIOUS DEPARTMENTS (Department Administration, Improvement advertising needed in procedures AND AGENCIES of Defense, General Services and Tennessee Valley Authority) use of formal for procurement GAO reviewed DOD, GSA, and the Tennessee Valley Authority (TVA) procedures and practices in using formal advertising for bids in order to (1) identify problems limiting competition and increasing Government costs and (2) offer suggestions to the agencies for more effective and less costly use of this method of procurement. GAO examined 138 contracts by 8 procurement offices of been solicited but that only three contracts were awarded the low response follow. --Bidders veal lists were relatively the --Previous bidders --Advertising lished elicit in description bids. awarded under formal advertising procedures these agencies and found that 8,956 suppliers 8 percent of them had submitted bids. Fiftyon the basis of three or fewer bids. Causes based on broad categories few sources capable of were the not regularly for the low for future number of procurements. --Restrictive repeatedly. specifications or --The complexity --Bidders --Bids were were Administrative lists of bidders; ing, and analyzing because : --41 percent tion than --About visions of not bids were purchase reitem. was not required pub- not given time to minor discrepancies. rejected because of suppliers for more than two copies bid (IFBs) the one IFBs were solictitation of 199 to to increase were used from bidding. bid. costs of formal advertising include preparing and mailing invitations; bids. Opportunities for reducing more invitations were used. timely and the was insufficient evaluated descriptions discouraged 50 percent of the pages in which were repeated from --Furnishing unnecessary. of items and did not bidding for a specific invitations enough of solicited. Commerce Business Daily of supplies or services --The causes competition had the IFB costs of maintaining and receiving, recordthese costs were evident were to prepared for distribu- standard contract to another. pro- the was firms solicited VARIOUS DEPARTMENTSAND AGENCIES (Department Administration, --92 percent of Defense, General Services and Tennessee Valley Authority) of the solicitations mailed GAO believes that, if DOD and the civil they could for correcting these conditions, annually. to firms did not result in bids. agencies adopt its suggestions save several million dollars GAO recommended that DOD and GSA, the major instruct procurement offices procurement policy, agencies responsible and agencies to: --Establish a program in each procurement office to selectively the extent of competition achieved under formal advertising aggressive action to stimulate competition where it appears restricted. for review and take to be --Establish a work simplification program in each procurement agency to (1) solicit only previous bidders or suppliers and firms that request the requireIFBs, (2) simplify and shorten IFBs, and (3) reevaluate ments for distributing IFBs. Comments on GAO’s recommendations and suggestions were obtained GSA, TVA, and the Small Business Administration (SBA). from DOD, DOD and GSA agreed in general with GAO on the problems found but did not ‘Both agencies.were concerned about always agree with the recommendations. the additional regulation and control that GAO seemed to be suggesting. GSA said that these problems could be solved by educating personnel at the operating levels of procurement. DOD said many of the suggestions had been considered previously, would be costly, would add to procurement time, and would create additional paperwork. TVA said it did not have the problems discussed in this report. SBA officials agreed with GAO on the problems and solutions suggested. They wanted it clearly stated that GAO’s suggestions should not be construed to mean the discontinuance of various programs to assist small business participation in Government procurement, a point in which GAO concurred. GAO agreed with GSA that educating personnel is necessary to implement sound administration. But GAO believes the agencies should achieve more genuine competition in formal bidding at lower administrative costs and reiterated its recommendation to establish programs within each major procurement agency to increase competition and simplify formal advertising. (B-176418, Aug. 14, 1973.) VARIOUS DEPARTMENTS AND AGENCIES (Department of the Interior, Department of Agriculture, Department of Defense, and the General Services Administration) Need solid for Federal agencies to improve waste management practices Federal legislation and Executive orders have stressed the importance of proper solid waste disposal, resource recovery, waste reduction, and the Federal agencies’ responsibilities for providing leadership in the nationwide effort to protect and enhance the quality of the environment. To determine how well Federal agencies were fulfilling their responsibilities, GAO reviewed disposal policies and practices of those agencies--Bureau of Land Management, Forest Service, National Park Service, and the Department of the Army--that managed the bulk of the Federal land having disposal sites. Federal regulations generally prohibit Federal agencies from burning but GAO reported widespread wastes in open fires and from using open dumps, open burning and open dumping on Federal lands administered by the Bureau of Land Management, the Forest Service, and the National Park Service. The Army generally was satisfactorily disposing of its unsalvageable wastes. The agencies generally lacked a systematic GAO recommended solve waste disposal problems. Agriculture and the Interior direct the Forest and National Park Service to: agement, --Establish, ters for at solid the various organizational waste matters. --Establish procedures so that communicated effectively to adequate policy guidance to officials effectively carry --Require periodic (1) agency-operated on Federal land vate land. approach to identify that the Secretaries Service, Bureau of levels, and of Land Man- responsihility cen- (1) solid waste management policies are all officials, (2) headquarters provides regional personnel, and (3) regional out agency policies. inspections and reporting of inspection results of and lesseeand permittee-operated disposal sites and (2) disposal sites used by the agencies on pri- GAO reviewed also GSA’s and the Army’s procurement, resource recovery, and recycling policies and practices and reported that both agencies had recovered some wastes for reuse or recycling but could recover many more. Generally the Army was recovering wastes only when it was economically it gave little consideration to salvaging and recycling priadvantageous; marily for environmental benefits. should GAO recommended be aware of, that GSA and the Army, and should emphasize to 205 in their procurement their suppliers, the activities, VARIOUS DEPARTMENTSAND AGENCIES (Department of the Interior, Department of Agriculture, Department of Defense, and the General Services Administration) environmental or recyclable benefits materials, that could be obtained through containers, and packaging. using more reusable The agencies generally agreed with GAO's findings and recommendations and specified steps they were taking to implement the recommendations. (B-166506, Oct. 26, 1972.) 4 206 VARIOUS DEPARTMENTS (Office of Management and Budget, of Housing and Urban Development, Differences relocation in administration assistance program AND AGENCIES Corps of Engineers, Department and Department of Transportation) of The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 provides for uniform and equitable treatment of persons displaced from their homes, businesses, or farms by Federal and federally It also established uniform and equitable land acquisiass isted programs. tion policies for such programs. At the request of the Chairman, Subcommittee on Intergovernmental Relations, Senate Committee on Government Operations, GAO reviewed Federal, State, and local agencies’ progress in implementing the act in Missouri, California, Wisconsin, and Pennsylvania. GAO reported that OMB; the Corps of Engineers; the Department of Housing and Urban Development; and the Federal Highway Administration, Department of Transportation, had (1) assisted the States in enacting legislation authorizing their participation in federally assisted programs causing relocation and (2) made progress in identifying and resolving agencies’ differences in the way relocation payments and services were being provided; but the relocation program could be better administered and payments could be made more uniform. In January 1971 the President directed OMB to establish and head an interagency task force to develop guidelines for all agencies in preparing procedures covering each agency’s specific programs. OMB also was directed to establish and head a relocation assistance advisory committee to continually review agencies’ relocation programs to recommend improvements and, if needed, proposals for legislation. The task force issued interim guidelines in February 1971 and revised guidelines in May 1972. As of January 1973, the advisory committee had identified 12 major differences in agency guidelines and obtained agreement from the agencies to resolve the majority of them. GAO noted instances information on relocation --delays in enacting --a of timely lack in which benefits displaced available persons under State legislation and/or actions by local displacing did not receive timely the new act because of offices. Relocation payments generally were computed according lines; however, because more than one method was permitted method was not used by local displacing offices in a given with similar housing needs did not receive similar payments. the agencies differed in determining: to OMB guideand the same area, displacees For example, --Differential housing payments for homeowners, Local displacing offices in the same area used different methods to establish the reasonable cost of a replacement house comparable to the one being acquired by the Government. 213 VARIOUS of DEPARTMENTS (Office of Management and Budget, Housing and Urban Development, AND AGENCIES Corps of Engineers, Department and Department of Transportation) --Differential rental payments. Local displacing offices how much, if any, of a displaced person's income should in computing the payment and whether the payment should actual rent paid for the replacement house or the rental comparable replacement housing. --Downpayments. Some local displacing offices limited amount needed for a conventional loan on a comparable other offices paid the amount needed for a conventional house purchased. differed in be considered be based on amount for payments to the house while loan on the OMB generally concurred with GAO's findings and conclusions and said the agencies agreed, in principle, with the major differences reported and were developing detailed instructions to correct them. In addition, OMB said that the interagency task force responsible for resolving agencies' legal and procedural differences was making excellent progress in identifying and resolving differences. After transferred this to report was issued, OMB's relocation GSA. (B-148044, June 7, 1973.) 214 responsibilities were VARIOUS DEPARTMENTS AND AGENCIES (Office of Management and Budget General Services Administration) Revisions needed in financial management policies of the Federal Government's Automatic Data Processing and Fund GAO examined the management policies (ADP) Fund's equipment lease program to administered as intended by the law and ing economies in acquiring ADP equipment. of the Automatic Data Processing determine whether the fund is being is effectively assisting in achiev- The Fund is an important tool for acquiring the Government's ADP equipment economically and leasing it to agencies. However, certain Fund policies should be revised to comply with the intent of Public Law 89-306 and with the accounting principles prescribed by the Comptroller General for use by Federal agencies. will lion. ized Equipment purchased by the Fund for $19.1 million, as of March 31, 1972, enable the Government to avoid commercial rent payments of $38.7 milThe equipment which the Fund purchased for $19.1 million was capitalat $22.7 million. GAO believes that: --Augmenting the Fund with the $3.6 ization of purchased equipment in with a provision that Fund capital the value of equipment transferred million attributable to the capitalexcess of costs is not in accordance be composed of appropriations and to the Fund. --Revaluing trary to agencies. amounts greater than prescribed for use purchased equipment at the accounting principles --Since the amounts capitalized are recovered through the capitalization policies for purchased equipment in charges to users that are contrary to a requirement 89-306 that charges approximate the cost met by the cost is conby Federal lease charges, have resulted of Public Law Fund. Agencies have also been required to pay an additional 10 percent of the equipment's capitalized value to provide for anticipated losses due to the The effect of this charge and its early termination of equipment leases. accounting treatment has been to recognize losses before they are incurred and to unnecessarily increase user charges. GAO suggested that OMB and GSA revise the Fund's equipment capitalization policies to insure compliance with Public Law 89-306 and improve the to the extent practicable, those policies which Fund's image by revising, are objectionable to the agencies. OMB and GSA were receptive OMB nor GSA favored elimination to of most of GAO's the 10 percent 215 suggestions, charge for but neither anticipated VARIOUS DEPARTMENTSAND AGENCIES (Office of Management and Budget and General Services Administration) However, OMB and GSA have reduced losses due to early lease terminations. the charge from 10 percent to 3 percent and are considering alternative (B-115369, Apr. 17, 1973.: accounting approaches for recovery of such losses. 216 --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Agao%3A208de54e9805b4bd. Public record. Not legal advice.