Real Property Leasing InnovationsGains from Streamlining Lease TransactionsU.S. General Services Administration, 2001

Leasing

GSA’s PBS, NCR has developed two interrelated parts of its innovative “Hybrid Model for Federal Government Leasing” that have the potential to substantially reduce the Federal Government’s transaction cost and time for placing Federal workers in leased office space. These are 1) an electronic commerce (e-commerce) enhancement of the existing Advanced Acquisition Program (AAP) and 2) capture the rebates of tenant broker commissions.

The AAP procurement method generates a standing inventory of best and final offers for leased space in NCR. Their latest automated improvements allow the Request for Offers to be filled out and returned online. Amendments can be done online as well, right up to the Best and Final Offers cutoff date; this must still be submitted as a hard copy. Offerors still have the option to work with hard copy throughout if they wish, although this will be phased out overtime. In addition to online AAP, the National Capital Region has sought and received a legal opinion allowing GSA to recapture in its lease transactions the commission fee for the tenant broker (also called the participating or cooperative broker). This fee has in the past gone unclaimed by GSA’s broker contractors; it either reverted to the property owner or was paid to the primary broker. This change in practice has thus far netted NCR $4.2 million of previously unclaimed commissions; a further $1 million is expected to be claimed by the end of the fiscal year.

For more information, contact Mr. Santoni Graham at (202) 708-6855 or via e-mail at santoni.graham@gsa.gov

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