Government Contracts GSA Rule Requires Lessors to Disclose Foreign Ownership
Tuesday, August 3, 2021

GSA Rule Requires Lessors to Disclose Foreign Ownership

By Government Contracts Editorial Staff

The General Services Administration has issued an interim rule to implement sections 3 and 5 of the Secure Federal Leases from Espionage and Suspicious Entanglement Act (PL 116-276). The Act addresses the risks of foreign ownership of government-leased real estate and requires the disclosure of ownership information for high-security space leased to accommodate a federal agency. This interim rule adds a new solicitation provision, GSAR 552.270-33, Foreign Ownership and Financing Representation for High-Security Leased Space, which contains a representation requirement, and a new clause, GSAR 552.270-34, Access to Limitations for High-Security Leased Space. Both apply to new lease awards, the exercise of options for current leases, lease extensions, and ownership changes for high-security leased space. The added representation requires offerors for high-security leased space to identify whether the immediate owner, highest-level owner, or an entity involved in the financing of the lease is foreign-owned. If so, they must represent the associated country. The new clause requires lessors for high-security leased space to limit access to the space unless approved by an authorized government representative. Comments on this interim rule, identified by RIN 1400-AE60, are due by August 31, 2021. For the text of the rule, which went into effect on July 1, 2021, see ¶70,030.228.

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