PROPOSED REAL PROPERTY ASSIGNMENT CIRCULAR (OFFICE OF MANAGEMENT AND BUDGET)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00142R000100080021-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: March 22, 2001
• Sequence Number: 21
• Publication Date: February 22, 1978
• Content Type: MF

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DD/A Registry
idve Reglelrq
[71- 'b2
2 2 FEB 1978
MEMORANDUM FOR: Director of Central Intelligence
VIA: Deputy Director of Central Intelligence
FROM., John F. Blake
Deputy Director for Administration
SUBJECT: Proposed Real Property Assignment
Circular (Office of Management
and Budget)
REFERENCE: Memo dtd Dec 19, 1977 for Heads of
Executive Depts and Agencies fm OMB,
same subject (DDA 77-6548; OL 7 5819)
1. Action Re guested: This memorandum contains a rec-
ommendation In paragraph4 for your consideration.
2. Background:
a. The proposed Office of Management and Budget
(OMB) circular provides guidelines and sets forth policies
for the assignment of federally controlled space to nonfederal
activities and establishes "rental" charges for space so
provided. The Office of Logistics (OL), in concert with
representatives of the Office of General Counsel, the Office
of Personnel, and the Comptroller, has reviewed the circular
and has made comments on what impact the circular would have
on the Agency if promulgated (Attachment 3). In essence,
the impact on the Agency would be an adverse one and the
consensus of the reviewing components is that the 0MB circular
in its present form should be opposed. The greatest adversity
appears to be the OMB proposal to assess concessionaires
such as Government Services, Incorporated, (GSI), operator
of the cafeteria, rental for space in the amount currently
paid by the Agency under the General Services Administration's
Standard Level User Charge For the cafeterias in
the Headquarters Building, and the Ames BuikL
the proposed rental to GSI wou amoun to $833,252 (or an
additional $ .92 per meal). As you are aware, the GSI
cafeteria operations are always on the brink of financial
disaster, and have only been able to anticipate a breakeven
point in any given operating year.
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SU}JBCT: Proposed Real Property Assignment Circular (Office
of Management and Budget)
OL feels, and I must agree, that an assessment of rental
charges as proposed, would result in the abandonment of
cafeteria operations by GSI. This opinion is shared by
GSA's Concession Division. The head of that division has
advised of his strong opposition to the proposed circular
because of the probable termination of all GSI cafeteria
operations. Loss of cafeteria services, especially in the
Headquarters Building, would have a serious effect on employee
morale and the Government would suffer a loss of employee
time and productivity if employees are forced to search out
an alternative commercial activity, the nearest being 2.5
miles from the Headquarters Building.
b. There are other proposals contained in the
circular that would have an adverse effect on the Agency
now and in the future. One is the Agency's proposed day
care center and another is the planned recreational site on
Federal land at Headquarters. According to the 0MB circu-
lar, all rental of space and other costs expended by the
Government is to be recouped by the fees charged parents for
the use of a day care center. Without some form of Govern-
ment subsidy to the day care center, e.g., free use of
space, it is a foregone conclusion that the intent of
providing child day care at a modest cost, especially for
employees in the lower grades, would be defeated. As far as
the planned recreational area on the Headquarters compound
is concerned, the language of the OMB circular provides that
a rental charge must be assessed if the Government incurs
additional expense which Phase I of the project does. It is
extremely doubtful that EAA could fund such a charge and the
benefit would be lost to our employees.
3. Staff Position; It is our conclusion that the
Agency oppose t e OMcircular in its current form since
strict adherence would: (1) result in creation of a pro-
hibitively expensive food service operation and could lead
to the elimination of such services; (2) preclude any
reasonable hope of establishing a modest cost day care
center for Agency personnel; (3) reduce, or eliminate the
benefits derived from operations of the FAA. If OMB per-
severes in the promulgation of the circular, the Agency
should be on record in its opposition and at least should
insist upon the broadening of heads of agencies latitude in
the exemption of assessing rental charges. This could be
accomplished by requesting that 093 add a provision to the
circular which would allow a head of an agency whose facility
is remote or otherwise not readily accessible to a wide
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SUBJECT: Proposed Real Property Assignment Circular (Office
of Management and Budget)
range of employee needs to exempt those services deemed
necessary to employee morale and efficiency from the assess-
ment of rental charges.
4. Recommendation: It is recommended that you sign
the prepare et er of-response to the Acting Director of
OMB.
ls/ John F. Blake
John F. Blake
Attachments
Distribution:
Orig - Addressee, w/atts _
1 - DDCI, w/atts
1 - ER, w/atts
2 - ADDA w/atts (w//a"ts
1 - OL Official Originating Office: _ /s/
James H. McDonald
Director of Logistics
Date 17 Feb 78
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TAB
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2 7 FEB 1978
The Honorable James T. McIntyre
Acting Director
Office of Kanagement and Budget
lxecutive Office of the President
Washington, D. C. 20303
Dear Jim:
,cudve Eegizt y
79-/c
After a careful review of the Office of Management and
Budget's (C",,Ai) proposed circular concerning assignment of
federally controlled space to nonfederal activities, and
assessing its potential impact upon this Agency, I must take
exception to the proposal as written.
As you may be aware, the Central Intelligence Agency
(CIA), because of its remote location, has a large cafeteria
operation contracted through the General Services Administra-
tion to Government Services, Inc. Additionally, CIA has an
active employes Activity Association (EAA) which is indepen-
dently incorporated as a nonfederal activity. Both the
cafeteria service and: AA activities provide amenities so
basic to employment as to be considered essential to effective
operation of the Agency. Additionally, because of its
importance to our employees and because no commercial,
equivalent is proximate to us, CIA is contemplating opera-
tion of a child day care center.
Our interpretation of the proposed circular would
indicate that charges to be levied against those activities
would make their continuance prohibitively expensive particu-
larly to the lower-graded employees of the Agency. I, of
course, endorse the stated *in of this circular; i.e., to
improve the efficiency and effectiveness of Government and
to assist in balancing of the budget. This should not be
done, however, at the expense of the morale and well-being
of our employees. Furthermore, these charges would have the
greatest impact on those federal employees in relative
iselated locations who do not have access to equivalent
c ercial services. Accordingly, I would propose that the
circular be so worded as to provide latitude to Agency heads
whose facilities are in decentralized locations. This
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The Honorable James T. McIntyre Page 2
latitude would permit independent assessment of the
essentiality of nonfederal services and establishment
of equitable rates to be charged for provision of federal
space to support these activities.
Specific suggested language for rephrasing aloe these
concepts can be provided if desired. Mr. John F. Blake, the
Deputy Director for Administration, is the CIA focal point
for this matter and should be contacted if further informa-
tion is desired.
Yours,
A Stansf ield Turn.:
STANSFIRLD TURNER
Distribution:
Original -
Addressee
1 -
DCI
1 -
DDCI
1 -
FR
2 -
ADDA
1 -
OL Official
Originator: BO/OL gaad;x8204 (17 Feb 1978)
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 INTERNAL
SE QNL
ROUTING AND RECORD SHUT
(Optional)
Proposed Real. Property- Assignment. Ci,rcul.ar.. (Office- of
Management and Budget)
Dept ty Ditector".
for Administration
7D24 Hdqs
TO. (Officer designotion, room number, and
building)
RECEIVED I FORWARDED
DDCI
:..7D6011 Hdqs
3. DCI
7D6011. Hdgs
C IDE;1TIAL
DD/A 78-0437/1
OFFICER'S COMMENTS (Number each comment to show from whom
INITIALS to whom. Draw a line across column otter each comment.)
Enclosed is a letter for
y_o7. r....:signature providing
..comments. .to CMB,-regarding
a-::propose.d:1:circular.,! which,
if.. . impl.emen.ted,.. will."
require .us to. charge all
nonfederal activities for
space'which..we provide.
9 1978
snop, txx store, and the
proposed recreation-area.
This:- proposa1 was ..:first
float-ed?=-in? 1975. CIA did not
respond at that time. How--
ever,,:=i=-t-is--the ..opinion. of
Exempted- are the-Credit Union
and the blindman vending
operation. Specifically
included,. however.,..are
cafeterias,. snack bars, the
day care center; barber
a-11= consulted: that.implemen
-
'stat'ion '-of='=this propoal
?s
would-.`:vi,r.tual.l.y.destroy our
cafe.te:ria roperation..and
crippl.ee -=any:-hope. of.
.. establishizig` a .day: care.-
center.
The"-'thrust of=-`our comment
deals-with-the inequities
the proposal would impose on
CIA,-particularly at-.Langley,
and -recommends - that:-wider
latitude be built into the
final-proposal in-conjunction
with special consideration
for agencies such as CIA
which have locations remote
from metropolitan centers.
3O 2M bl 0 USE App d Ft~elea 2 L -42
i USE ONLY I IED
 UNCLA
ROUTING AND RECOR
SUBJECT: (Optional)
NTL
T
FROM: Director of Logistics EXTENSION
8-8200
TO: (Officer designation, room number, and.
DATE
building)
OFFICER'S
I NTL
RECEIVED FORWARDED INITIALS
1 AGC/OL
2
2.
3. OP/BSD
5E56 Hdqs
4.
s.
O/Compt/AG
4E20 Hdgs
6.
0 1-b D 1-9
Z"
7.
A-DDA
7D24 Hdgs
8.
DDA
9.
10.
11.
12.
13.
14.
15.
3-62 610 usM#Vb j @elea 2
l
f IA-
P[
TA
17 FEB i~78
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment,)
Attached is a proposed
response to OMB's draft
circular requiring executive
agencies to charge nonfederal
activities for Government
provided space.
This response has been
coordinated in draft with
OP/BSD, 0/Compt, and AGC/OL.
We r eived a similar
posal in 1975, but no
formal response was made
by the Agency. Believe
this is the time to go on
record with our comments.
Note that 0MB has requested
response by 20 February.
Internal coordination has
delayed this paper, but
believe that if it arrives
at 0MB during week of
20 February, we shall have
complied with the spirit
of their request for
comments.
jP
USE ONLY 0f ED
NTERNAL
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