By taking advantage of a little-used project delivery vehicle, the General Services Administration (GSA) partnered with the U.S. Postal Service (USPS) to develop a modern, well-managed and secure Courthouse facility and Post Office in Lynchburg, Virginia. Through a Memorandum of Understanding (MOU), the USPS was able to acquire the development site, hire the developer and build the Courthouse and Post Office facility. This GSA and USPS MOU serves as a lease-like document. A Special Purpose Entity (SPE) is created which leases the facility to the USPS. GSA then “sub-leases” the courthouse facility through the MOU.
Historically, the procurement of a new facility using the standard construction or acquisition channels would be a 10 to 15 year process. There were no existing leases in the Lynchburg community that would be appropriate for repurposing into a courthouse.
GSA’s Mid-Atlantic Public Buildings Service (PBS) has had success in the past partnering with the USPS in similar situations. GSA and the USPS have partnered in the past successfully to develop such sites as the Stegmaier Building and Max Rosenn Courthouse in Wilkes Barre, PA.
The USPS had a need to replace the downtown Lynchburg Post Office, and by working together, GSA and the USPS were able to reduce costs, make use of an existing historic schoolhouse, and create a Federal facility that meets the needs of Federal clients and the local community.
By implementing this practice, GSA was able to relocate the client to a well managed, safe location. The cost of partnering with the USPS to develop this site is comparable to that of a leased construction project. By developing this project, the Federal government also helped to preserve a historic schoolhouse in the community.
This project highlights how Federal Government real property assets of the can be utilized among agencies with the use of instruments of agreement that follow the best practices of the industry. Through the USPS/GSA partnership, the Federal government worked with a private developer to provide a positive Federal presence, including beneficial economic impact to the city of Lynchburg.
For more information, contact Rob Hewell at 215-446-4640, or by email at rob.hewell@gsa.gov.
