Helmsman Properties, Inc., B-278965, April 20, 1998

B-278965 Apr 20, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Which was intended to promote economic growth within major central cities. That location in CBA is part of the government's needs. Helmsman is the current lessor of space occupied by DCMC. Helmsman's building is located in the business district of Towson. GSA responded that it was required to compete the requirement. GSA then consulted with Baltimore City officials to help define the boundaries of the CBA and conducted a market survey that was limited to the Baltimore CBA. Two of which were for buildings located within the city limits. Maintaining that limiting the competition to the Baltimore CBA was unduly restrictive of competition. Helmsman contends that limiting this acquisition to the Baltimore CBA is the result of GSA's misapplication of Executive Order 12. View Decision Matter of: Helmsman Properties, Inc. File: B-278965 Date: April 20, 1998 DIGEST Attorneys DECISION Helmsman Properties, Inc. protests the terms of solicitation for offers (SFO) No. 7MD0095, issued by the General Services Administration (GSA) for the lease of approximately 33,000 square feet of office space in Baltimore, Maryland, for the Defense Contract Management Command (DCMC). Helmsman argues that the SFO improperly limits the delineated area for the acquisition to the central business area (CBA) of Baltimore City. We deny the protest. Helmsman is the current lessor of space occupied by DCMC, with the lease due to expire in July 1998. Helmsman's building is located in the business district of Towson, Maryland, a suburb of Baltimore located approximately 3 miles outside of the city limits. DCMC initially contacted GSA and requested that it be permitted to remain at its current location. GSA responded that it was required to compete the requirement. DCMC then requested that the competition include a delineated area comprised of Baltimore City and several surrounding suburban areas. GSA conducted a telephone market survey that produced 15 expressions of interest from firms in the delineated area requested by DCMC. Thereafter, however, citing Executive Order No. 12,072, 3 C.F.R., 1979 Comp., p. 213, reprinted in 40 U.S.C. Sec. 490 (1994), GSA advised DCMC that it would limit its consideration to property located in the CBA of Baltimore City. GSA then consulted with Baltimore City officials to help define the boundaries of the CBA and conducted a market survey that was limited to the Baltimore CBA. GSA received five expressions of interest, two of which were for buildings located within the city limits, but outside the delineated CBA. GSA subsequently issued the SFO, and received one offer by the date set for the receipt of initial offers (and an additional offer after the initial closing date). Helmsman filed an agency-level protest, maintaining that limiting the competition to the Baltimore CBA was unduly restrictive of competition. GSA denied Helmsman's protest, finding that it had properly applied Executive Order 12,072 in limiting the acquisition to the CBA. This protest to our Office ensued. Helmsman contends that limiting this acquisition to the Baltimore CBA is the result of GSA's misapplication of Executive Order 12,072 which, Helmsman contends, nowhere requires GSA to limit acquisitions to the CBAs of central cities. According to the protester, since Towson is situated in the CBA of Baltimore County, an "urban area" within the meaning of the Executive Order and its implementing regulations, leasing its building would be consistent with the Executive Order. /1/ Helmsman further contends that GSA improperly failed to consult with Baltimore County officials, as allegedly required by the Executive Order, before making its decision about the CBA. Executive Order 12,072 requires that GSA give first consideration to a city's CBA, and adjacent areas of a similar character, in meeting federal real estate requirements in urban areas; its purpose is to "strengthen the Nation's cities" and "conserve existing urban resources and encourage the development and redevelopment of cities." Executive Order 12,072, section 1-101. As we previously have noted, President Carter, in signing the Executive Order, commented that it was designed to help place federal buildings in urban areas to encourage the migration of jobs, people, opportunities and growth to abandoned central city areas; the objective is to "strengthen the backbone of our major cities and to build up jobs and further investments there." 14 Weekly Comp. of Pres. Doc. 1,427-1,428 (Aug. 16, 1978); H&F Enters., B-251581.2, July 13, 1993, 93-2 CPD Para. 16 at 5. The purpose of the Executive Order--to encourage economic growth in "major" central cities through locating federal facilities within the cities' CBAs--is clear, and Towson simply is not a major city's CBA.