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How does the federal government lease needed space? : hearing before the Federal Financial Management, Government Information, and International Security Subcommittee of the Committee on Homeland Security and Governmental Affairs, United States Senate, One Hundred Ninth Congress, first session, October 6, 2005.
Federal Government Real Estate Leasing is the practical guide you need for federal government real estate lease formation and performance. Whether you are already experienced in federal government leasing or you are a commercial real estate landlord looking to break into the government space, this guide will provide you with the most important rules of the road, as well as practical pointers in navigating the oftentimes confusing world of federal leasing.Federal Government Real Estate Leasing includes analysis of recent developments on government lease administration, new rules and templates, and discussions of some of the more important U.S. Court of Federal Claims decisions addressing federal leasinggovernment leasing policy, the rules of the road for contracting with the federal government, and lease elementscommon lease administration issuesfederal leasebacksThe federal government is the largest single lessee of space in the United States and federal government tenants are backed by the full faith and credit of the U.S. government. But leasing to the federal government is not without its risks and complications. Federal government leases are government contracts, and the federal government attaches a number of requirements and conditions through the contracting process. Commercial landlords may be unfamiliar with a number of these government-specific requirements. Similarly, the government has its own processes for awarding leases, resolving disputes during the term of the lease and addressing the sale of an asset with a government lease that will likely be foreign to commercial real estate practitioners.Austerity measures adopted by the government in an attempt to rein in costs have led to a smaller universe of government leases. This, in turn, has led to increased competition for a piece of the shrinking government leasing business. In this atmosphere of increased competition, contracting officers have become more sophisticated and discerning in their procurement decisions. How, then, should landlords approach government leasing in this environment of heightened scrutiny and competition?This guide is a primer for those new to government leasing, as well as a resource for more experienced federal real estate practitioners, government contracting officers, and leasing specialists.Federal Government Real Estate Leasing is written by experts in the field Robert C. MacKichan Jr., a partner in Holland & Knight's Washington, D.C., office and the leader of the firm's GSA Leasing and Federal Real Estate Team, and Gordon N. Griffin, an attorney also at Holland & Knight's Washington, D.C., office, who advises federal real estate clients on U.S. government procurement practices and lease disputes under the Contract Disputes Act.
In January 2003, GAO designated federal real property as a high-risk area, citing the government's overreliance on costly, long-term leasing as one of the major reasons. GAO's work over the years has shown that building ownership often costs less than operating leases, especially for long-term space needs. GAO was asked to identify (1) the profile of domestically held, federally leased space including the overall amount and type of space agencies lease, and any related trends; (2) the factors that drive agencies to lease space that may be more cost-effective to own; and (3) any actions taken by the administration and alternative approaches proposed to address this issue. GAO reviewed fiscal year 2006 Federal Real Property Profile (FRPP) leasing data and relevant documents and interviewed officials from the General Services Administration (GSA), the Office of Management and Budget (OMB), and the U.S. Postal Service (USPS). GAO also reviewed 10 building leases that were among those with the largest dollar value in 3 locations GAO visited. OMB, in conjunction with the Federal Real Property Council (established by the administration