Government Contracts GSA Rule Requires Lessors to Disclose Foreign Ownership
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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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