Improving the Efficiency of the Leasing Process through Automated Acquisition
General Services Administration, Public Buildings Service National Capital Region
Award Finalist
The purpose of developing the Automated Advanced Acquisition Program (AAAP) was to reduce the costs relating to the acquisition of real property lease assets, improve supply and pricing of space offered for lease to the Government, and improve customer satisfaction by delivering space faster to its customer agencies.
In addition to the obvious benefits, the AAAP incorporates cutting-edge GIS technology, which reduces offer submission and evaluation time from weeks to seconds for the AAAP. Outside of the Government, the AAAP helps businesses interact efficiently and effectively with the Federal government, provides one-stop access to information, and enables internet web-based E-commerce. In expanding Electronic Government, the AAAP has advanced the goals of GSA and the President’s Management Agenda by establishing itself as the first E-commerce leasing application in the Federal government.
By way of background, in 1991, the paper-based Advanced Acquisition Program (AAP) was created for the purpose of consolidating and streamlining the leasing process for a large volume of small leases, and for procuring space faster. The AAP process treats real estate as a commodity by capturing supply in varying lease terms and locations in a standardized fashion. In 2001, GSA commissioned AEW Capital Management, L.P., to perform a study to analyze the NCR Leasehold Portfolio. AEW determined that GSA was not requesting new offers/updates to its AAP procurements often enough, given the volatility of the real estate markets. The problem was either that the lessors would not honor their space bids (because market rates increased significantly) or that the GSA would pay too much for space (because market rates decreased significantly). The Automated AAP solved this problem by using technology to increase the frequency of offer submissions, which led to a better supply and “real-time” pricing that reflected current market rates.
In addition, the AAAP capitalizes on the efficiencies of technology to enable GSA to effectively evaluate this higher volume of offers. Such technology utilizes Geographic Information System (GIS) technology to automatically evaluate and rank offers that meet the Government’s location and space requirements. In addition, the AAAP employs electronic signature technology, in the form of a five-digit self-select personal identification number (PIN), to enable building owners to update existing online offers or submit new ones. Without the electronic signature and the automatic evaluation process, GSA would spend weeks reviewing the terms and conditions of paper lease offers that it received to make sure that they were consistent with the SFO. With the electronic signature and GIS technologies inherent in the AAAP, GSA can evaluate, rank, and select offers in a matter of seconds.
These technological efficiencies translate into a more efficient lease process, less costly acquisition of real property lease assets (established as a performance measure by Executive Order 13327) and improved customer satisfaction by delivering space faster to its customer agencies. By developing and implementing the AAAP, the Federal Government has taken a giant leap forward in the E-commerce arena and is beginning to revolutionize the commercial real estate industry’s approach to real property lease transactions.
Contact:
Arthur M. Turowski, Director, Leasing Policy and Performance Division (WPQ)
U.S. General Services Administration, Public Buildings Service, National Capital Region
art.turowski@gsa.gov
