Federal Manager's Daily Report

GAO reported that certain high-security federal agency offices were in buildings owned or controlled by foreign entities. Image: Andrey Mihaylov/Shutterstock.com

GSA has finalized rules to tighten controls over leases for high-security federal office space as required under the Secure Federal Leases Act, which requires fuller disclosure who ultimately owns the property.

That law imposes disclosure requirements regarding the foreign ownership and control, including who is the immediate owner and highest level owner or “beneficial” owner of GSA-leased space having a security level of III or higher. The law does not apply to DoD or intelligence agencies, which have separate requirements.

The law was enacted in late 2020 in response to a GAO report finding certain high-security federal agency offices were in buildings owned or controlled by foreign entities, exposing them to potential physical or cyber espionage by foreign actors. Those agencies generally were unaware of such ownership, and GAO added that it could not identify the ultimate owner for a third of the leased spaces it reviewed.

In addition to spelling out the disclosure requirements for future leases, the rules in the March 7 Federal Register outline development of a plan and a report to Congress for identifying all immediate, highest-level, and beneficial owners of currently leased high-security space.

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