CREW DC: News-Program Summary

PROGRAM SUMMARY

Febuary Program – The Future Role of GSA

Susan English, AIA Principal at Gensler moderated the panel, which included: Cathleen Kronopoulous, Director of Policy and Analysis, Office of Portfolio Management of GSA; Richard Barnett, Director of Government Relations at Kilpatrick Stockton LLP; Marcy Owens Test, Vice President at Spaulding & Slye/Colliers.

Cathleen began the discussion by stating that there are three trends in GSA: Outsourcing, Integration and Collaboration. GSA increasingly relies on the commercial market for services and space. GSA staff has decreased by 28,000 since 1997. This change has been driven by Administrative agendas, the economy and demographic shifts. In the 60's GSA owned 70% of its properties, currently GSA owns 50%. The trend is moving to leasing vs. owning with GSA taking more of a management role.

Marcy noted that there are several procurement vehicles for doing business with GSA. Contracts can be directly with agencies or through GSA. In addition, many firms can partner with someone who holds a contract. MOBIS (Management, Organizational, and Business Improvement Services) was established by GSA to streamline the procurement process. It is a five-year schedule with three 5-year options and requires annual and semi-annual reporting. The program is self-administered, 5% of gross receipts are contributed to the fund.

Cathleen stated that the award of the new national broker contract which will be awarded by October 4, will centralize real estate activities.

Susan asked the panel what the impact of 9/11 and the Iraq war has had on GSA. Kathy stated that security costs have increased. Richard noted that the formation of the Department of Homeland Security has had a major impact. DHS is still in the process of defining their space needs. Kathy noted that other agencies, i.e., INS and Customs, have been affected by the integration of some of their staff into DHS.

Richard stressed Congress' Role as an oversight body during the Annual appropriation process. Several Acts of Congress, i.e. the Procurement Streamline Act of 1996, have set policies for GSA. He also noted that only 6% of the Federal Real Estate is owned by GSA. 94% is owned by other Federal Government Organizations.

Cathleen noted that GSA has billions of dollars in real estate, many in aging buildings. The Federal Building Fund is not adequate to maintain these buildings. Taking Federal assets and leveraging with private contracts in a partnership is a way to fund projects which has been successful in England and Europe, but is a process which has not yet worked here in the US.

Marcy said that the larger more complex scope of projects benefit from partnerships. Multiple disciplines are needed to address all the issues: real estate, architecture/engineering, communication, environmental, etc. The Federal Trade Commission project at 600 New Jersey Ave. is a good example of a successful collaboration.

Richard noted that the Census Bureau project was another example. 40 million dollars and two years were cut off the original budget and schedule by using partnerships to review and analyze multiple options.

Cathleen stated that there are several performance measures: building cost, lease cycle, etc. which are used to evaluate the success of a collaboration. She stressed that experience and established relationships are key. Richard and Marcy concurred that established relationships help guarantee success.

Cathleen mentioned that the South East Federal Center will be a benchmark project demonstrating the new role of GSA as a process facilitator. It will be a mixed- use project: cultural, residential, office and retail. It will be a prototype for leveraging private capital with government land and management.