The Government Services Administration’s capital-planning approach lacks transparency and strategic focus when it comes to evaluating its most high-value leases. This hinders the agency’s ability to make informed decisions when in comes to making those evaluations and, thereby, could result in greater costs to the federal government.
That’s one of the conclusions of a new Government Accountability Office (GAO) report entitled “Federal Real Property: Greater Transparency and Strategic Focus Needed for High-Value GSA Leases.”
The Obama administration has directed agencies to reduce real property costs. GAO found that GSA has made strides in reducing its high-value lease costs, but it also found that building ownership often is more cost-effective than leasing. This is especially true when it comes to long-term leasing.
“GSA officials stated that for most high-value leases, federal ownership would be more cost effective over the long term, but GSA did not have the funding available to purchase, renovate, or construct a building,” the GAO report stated.
According to GSA’s State of the Portfolio publication, which covered fiscal year 2011, GSA had 374.6 million rental square feet in its inventory. Of that, slightly more than half — 192.7 million square feet — was leased.
Keep reading this article at: http://www.federalnewsradio.com/445/3491494/GSA-needs-more-transparency-over-high-valued-leases-report-says