The federal government holds thousands of properties that agencies no longer need to accomplish
their missions. When the government disposes of unneeded properties—through transfer,
donation, or sale—it generates savings by eliminating maintenance costs. In addition, when state
or local governments, nonprofits, or businesses acquire unneeded federal properties, they may be
used to provide services to the public, such as temporary housing, or contribute to economic
development.
The General Services Administration (GSA) plays a central role in disposing of unneeded
property at most federal agencies. The Federal Real Property and Administrative Services Act of
1949 (Property Act) gives GSA the authority to dispose of real property at all federal agencies
unless they have independent statutory authority to dispose of their own properties themselves. A
number of agencies have independent disposal authority—ranging from limited to broad in
scope—including two of the largest federal landholders, the U.S. Postal Service (USPS) and the
Department of Defense.
When an agency notifies GSA that it has unneeded real property, GSA first offers to transfer the
property to another federal agency, which must pay fair market value for it. If no other agency
wishes to acquire the property, GSA may then convey it to a state or local government, or a
qualified nonprofit, for up to a 100% discount—provided it is used for an approved public
benefit. Should a state or local government or qualified nonprofit wish to acquire the property for
a use other than one of the approved public benefits, GSA has the option to sell the property to
them at fair market value. Finally, if the property is not sold to a public or nonprofit entity, it is
offered for sale to the public.
Real property disposition is the process by which federal agencies identify and then transfer,
donate, or sell facilities and land they no longer need. Disposition is an important asset management
function because the costs of maintaining unneeded properties can be substantial. In
FY2013, for example, the government disposed of 21,464 unneeded properties with annual
operating costs of $411 million.4 Savings generated by the disposal of unneeded properties might
be applied to pressing real property needs, such as improving building security or repairing
existing facilities, or towards other pressing policy issues, such as reducing the national debt.
Disposition is also important because it is a mechanism by which state and local governments,
nonprofit organizations, and businesses may acquire federal property. In the hands of nonfederal
entities, the previously underutilized properties may be used to provide services to the public,
such as temporary housing, or contribute to economic development.
Negotiated Sale
Surplus property that is not disposed of through the public benefit conveyance process may be
sold to state and local governments at fair market value.21 In essence, state and local governments
are given the right of first refusal—they are allowed an opportunity to purchase surplus property
before the property is offered for sale to the general public. Federal real property regulations
permit negotiated sales when “a public benefit, which would not be realized from a competitive
sale, will result from the negotiated sale.”22 The regulations do not specify what types of activities
would qualify, but GSA guidance notes that a state or local government can use property
“according to its own redevelopment needs,” including economic development.
Public Sale
Surplus properties that are still available after screening for public benefit conveyance and
negotiated sale may be offered for public sale. The property is advertised in local newspapers,
regional or national publications, and the U.S. Real Estate Sales list, and may also be found on
GSA’s website.24 The appraised value of a property is used as a guideline for initial pricing, and
properties are sold through sealed bids, physical auctions, and Internet auctions.
https://www.fas.org/sgp/crs/misc/R43818.pdfThey are already in the process of deeming it surplus property.
Wont happen in fact it CANT happen
Can and
will if they so please...