Can procurement funds be used to fund for leasing a building for civilians, military and contractor employees? If not what is the correct color of funds? Where is the regulation or policy for this?
GSA retains leasing authority for federal agencies, with some exceptions. For DoD, the exceptions include lease-purchase authority on military installations. If you are considering leasing office space off of a military installation, then you need to go through GSA. The Real Estate Acquisition part
of the Federal Management Regulation contains details on leasing authority. GSA's Leasing Overview page
contains contact information. Operations and Maintenance funds are typically used for leasing space.