Federal Office Space
More Businesslike Leasing Approach Could Reduce Costs and Improve Performance Gao ID: GGD-95-48 February 27, 1995The General Services Administration (GSA) has a virtual monopoly over the provision of federal office space. GSA now spends $2 billion annually for leased space and projects that these costs will rise to $3 billion by 2002 unless the ratio of federally owned to leased space is increased. Also, federal agencies have been dissatisfied with GSA's monopoly and the amount of time GSA takes to deliver requested space. GAO concludes that a more businesslike approach to leasing could reduce costs and improve performance. GAO makes several recommendations to streamline GSA's leasing process, making it less costly and time consuming, more responsive to the needs of federal agencies, and a better value for taxpayers.
GAO found that: (1) GSA has a highly prescriptive and process-oriented leasing approach which prevents it from timely securing good values on office space leases and impedes its ability to deliver office space to federal agencies; (2) federal procurement laws and procedural controls enacted to ensure leasing uniformity, compliance, and fairness unduly restrict GSA flexibility; (3) GSA may be paying too much for leased space because of its confusing and time-consuming solicitations and standard contracts; (4) the 12 private-sector firms reviewed use a simpler, more flexible, results-oriented leasing approach that reduces their leasing costs; (5) the private firms do not use detailed specifications and contracts or require multilevel reviews of proposed leases; (6) the firms rely on their staff's expertise, conform to customary commercial practices, and assume more leasing risks; (7) GSA has streamlined its procedures for small leases and is exploring other leasing alternatives in response to initiatives to reduce the government's size and improve performance; (8) GSA could make other administrative changes to improve timeliness and reduce costs, but significant improvements will require fundamental changes in its leasing approach, organizational culture, and role in meeting federal office needs; and (9) federal procurement laws and regulations and other national policies need to be reexamined and possibly changed in order for GSA to adopt a more results-oriented leasing approach.
RecommendationsOur recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director: Team: Phone:
