GSA Finalizes Rules for Leasing High-security Space

The General Services Administration on March 7 issued a final rule that amends the Federal Management Regulation, Real Estate Acquisition, by clarifying policies regarding lease agreements for high-security space in accordance with the Secure Federal Leases from Espionage And Suspicious Entanglements Act, also referred to as the Secure Federal Leases Act.

The final rule takes effect April 6 and will require the identification of all beneficial owners, meaning “any person that, through a contract, arrangement, understanding, relationship, or otherwise, exercises control over the covered entity or has a substantial interest in or receives substantial economic benefits from the assets of the covered entity, with some exceptions.”

The amended policy is a response to recently heightened national security concerns about foreign ownership and control, and congressional action in the realm of government contracting.