May 29, 2011
SEC IG Reports Improper Actions Relating to the Leasing of Office Space
"The OIG investigation found that the circumstances surrounding the SEC's entering into a lease contract with David Nassif Associates ("DNA") for 900,000 square feet of space at the Constitution Center facility in July 2010 represents another in a long history of missteps and misguided leasing decisions made by the SEC since it was granted independent leasing authority by Congress in 1990. We found that notwithstanding this significant authority, the SEC had not even established a Leasing Branch until April 2009 and did not put into place leasing policies and procedures until August 2010. The OIG investigation further found that based upon estimates of increased funding primarily to meet the requirements of the Dodd-Frank: Wall Street Reform and Consumer Protection Act ("Dodd-Frank"), between June and July of 2010, the SEC Office of Administrative Services ("OAS") conducted a deeply flawed and unsound analysis to justify the need for the SEC to lease 900,000 square feet of space at the Constitution Center facility. We found that OAS grossly overestimated the amount of space needed at SEC Headquarters for the SEC's projected expansion by more than 300 percent and used these groundless and unsupportable figures to justify the SEC committing to an expenditure of $556,811,589 over 10 years."