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Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations
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estimated cost for this part of the rule to be $62,000 = 5 hours $84.16 147.
iv. GSA estimates 10 percent, or 54
lessors, of new high-security lessors each year will respond affirmatively to one or more sections at c1, d1, and e1 of the representation clause that the offeror does have an immediate owner, and/or is owned or controlled by another entity or highest owner, and/or does involve a foreign entity and will be required to complete additional sections at c2
and c3, potentially c4, d2 and d3, potentially d4, and e2. GSA
estimates that it will take leasing acquisition members 5 hours to complete the reviews on those various sections of the representation clause, notify the Federal tenant of the building or other improvement of any security concerns and necessary mitigation measures if any prior to award or approval of a novation agreement.
Therefore, GSA calculated the total estimated cost for this part of the rule to be $23,000 = 5 hours $84.16 54.
b. GSAR 552.27034, Access to Limitations for High-Security Leased Space i. GSAR 552.27034 requires lessors for high-security leased space to limit access to the space unless approved by an authorized Government representative. GSA estimates that 10
percent of lessors, or 147 10 percent of 1,471 will request approval once per lease and it will take the leasing acquisition member an estimated 3
hours to review and approve the request. Therefore, GSA calculated the total estimated cost for this part of the rule to be $37,000 = 3 hours $84.16
147.
ii. GSA estimates that for new highsecurity lessors, 10 percent of lessors or approximately 54 will request approval once per lease and it will take the leasing acquisition members an estimated 3 hours to review and approve the request. Therefore, GSA
calculated the total estimated cost for this part of the rule to be $14,000 = 3
hours $84.16 54.
iii. GSA acknowledges that the rule will require written procedures, as documented in the Governments Occupant Emergency Plan,46 governing access to the high-security leased space in case of emergencies. GSA estimates that writing these procedures will take approximately 2 hours. Therefore, GSA
calculated the total estimated cost for 46 The
GSA Office of Leasing will develop a templated Plan for all leasing acquisition members to use. Therefore, it will not require individual development of each plan by each member. This will lessen the burden.

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this part of the rule to be $248,000 =
2 hours $84.16 1,471.
iv. GSA acknowledges that the rule will require, for new high-security leases, written procedures, as documented in the Governments Occupant Emergency Plan, governing access to the high-security leased space in case of emergencies. GSA estimates that writing these procedures will take approximately 2 hours. Therefore, GSA
calculated the total estimated cost for this part of the rule to be $91,000 = 2
hours $84.16 542.
After the first year the rule is implemented, GSA estimates it will take 6 minutes 0.10 hours to update any information in the subsequent years for the written procedures. GSA does not estimate any additional significant burden with access requests. Therefore, GSA calculated the total estimated cost for this part of the rule to be $12,000 =
0.10 hours $84.16 1,471.
The total estimated cost to GSA to review representations and written procedures is estimated to be $359,000
in the first year after publication. The total estimated cost to GSA to review representations and written procedures annually is estimated to be $145,000.
4. Reduced Competition GSA acknowledges both new clauses may lead to reduced competition. Some lessors may choose to exit the Federal market, particularly lessors that primarily lease to the private sector, because of the additional disclosure requirements, and the subsequent reduced level of competition may increase prices. However, estimated costs faced by contractors represent a small fraction of lease payments, and therefore GSA expects effects along these lines to be minimal.
5. Government Total Costs The total cost of the above Cost Estimate is $511,000 in the first year after publication. The total cost of the above Cost Estimate in subsequent years is $166,000 annually.
The following is a summary of the estimated costs calculated for a 10 year time horizon at a 3- and 7-percent discount rate:
Summary
Total costs
Present Value 3 percent
Annualized Costs 3 percent
Present Value 7 percent
Annualized Costs 7 percent

$1,750,000
205,000
1,488,000
212,000

GSA notes that this interim rule does not authorize GSA lease contracting officers to use the information disclosed by offerors as a differentiating factor for selection of a lease award, nor does it
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authorize GSA to terminate a lease, prevent a novation, or otherwise decline to make an award based on the disclosure. As such, GSA estimates that this rule will not result in these activities, and therefore no moving costs have been included for in this regulatory impact analysis.
6. Overall Total Costs The overall total cost of the above Cost Estimate, including both Public and Government costs, is $2,653,000 in the first year after publication. The overall total cost of the above Cost Estimate, including both Public and Government costs in subsequent years, is $1,143,000 annually.
The following is a summary of the estimated overall total costs calculated for a 10 year time horizon at a 3- and 7-percent discount rate inclusive of both Public and Government costs:
Summary Present Value 3 percent
Annualized Costs 3 percent
Present Value 7 percent
Annualized Costs 7 percent

Total costs $11,216,000
1,315,000
9,439,000
1,344,000

g Analysis of Alternatives Alternative 1: GSA could take no regulatory action to implement this statute. However, this alternative would not provide any implementation and enforcement of the important national security measures imposed by the law.
Moreover, the general public would not experience the benefits of improved national security resulting from the rule as detailed above in Section VI.d. As a result, we reject this alternative.
Alternative 2: GSA could take a more stringent approach to the requirements of the Act and apply the new clauses to not only all GSA leases and delegated leases for FSL III, IV, or V space but for all FSL designations. However, given the relatively low levels of risk at those facilities, as described by the ISC, compared with the costs and burden applying this new representation clause and access clause,47 no additional benefit would be gained. As a result, we reject this alternative.
GSA also considered issuing an acquisition letter, but concluded the best alternative was to issue this interim rule directly implementing the statute and allowing for public comment.
47 As this Regulatory Impact Analysis only considers 1,471 high-security leases or approximately 16% of the GSA leasing portfolio, its reasonable to estimate that if the entire portfolio was included, costs could be approximately 5X
more costly than currently shown.

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