GSA's Cost Analyses for Relocation of Federal Agencies to a Leased Building at Buzzard Point

The General Services Administration's (GSA) economic analyses of alternatives or combinations of alternatives concerning the use of a leased building at Buzzard Point in Washington, D.C., were reviewed. In considering potential tenants for the building, GSA compared the first year costs or savings to be incurred in moving various federal offices to the building, including: (1) leases to be cancelled on vacated buildings; (2) lease costs avoided by use of the Buzzard Point building; and (3) space modifications in the building and in vacated buildings.

The analysis prepared by GSA contained several minor errors which did not materially affect either estimated net costs or savings. The alternative which resulted in the highest net savings ($584,000) involved certain offices of the Federal Energy Administration (FEA), the Federal Bureau of Investigations, and the Energy Research and Development Administration. Major factors influencing the ranking of the nine alternatives included: (1) an estimated $1.1 million annual savings based on nonrenewal of a lease on a building occupied by FEA; (2) relative low backfill costs for three alternatives; and (3) high costs of special alterations. In several instances, the space assigned to an agency in a building has changed since the analysis was prepared.