___.. --__ _____.-__ -. Jllrlt~ l!I!N) NAVY OFFICE SPACE Consolidating Space in Northern Virginia for the Five Systems Commands .,, s 141779 RFSTRICTED-- Not to be released outside the General Accounting Offke unless specifhlly approved by the Office of Congressional Relations. w8ti\ RELEASED United St&s GAO General Accounting Office Washington, D.C. 20548 General Government Division B-239680 June 28,199O The Honorable John P. Murtha Chairman, Subcommittee on Defense Committee on Appropriations House of Representatives Dear Mr. Chairman: This fact sheet responds, in part, to your request for information about the cost of maintaining the five Naval Systems Commands in the Wash- ington, D. C., metropolitan area. As agreed with the Subcommittee, we (1) identified where the Systems Commands are currently located, (2) obtained the status of the current leases for these buildings, and (3) determined the status of the General Services Administration’s (GSA) efforts to negotiate a lease that consolidates the Systems Commands in Northern Virginia. Our National Security and International Affairs Division is working on other aspects of your request and will report separately on that work. As part of its plan to upgrade its space in the National Capital Region, Background the Navy plans to consolidate its five Systems Commands at a single site in Northern Virginia. Currently, the Systems Commands are located in space leased by GSA in Arlington and Alexandria, Virginia. GSA leases this space from private organizations and charges the Department of Defense (DOD) for the space used by the Navy. GSA calls this charge Rent. According to GSA’S regulations, Rent is to reflect the approximate equivalent commercial rates for comparable space and services and is to be based on the type, quality, and geographical location of the space provided. Standard services provided in Rent are to include elevator ser- vice, electricity, heat, and air conditioning and are to be based on the effort required to service an agency’s space for one shift during a S-day, Monday-to-Friday work week. GSA provides special services for extended work schedules at an additional cost. The Defense Authorization Act of 1989 directed GSA to solicit offers for office and related space to meet the Navy’s long-term needs in the National Capital Region. In October 1989, GSA issued a solicitation for offers requesting about 3 million square feet of space for about 20,000 employees and related parking to meet the Systems Commands’ long- term needs. Plans call for the consolidation to be completed in 1998. Page 1 GAO/GGD4@39FS Navy Offlce Space The Naval Sea Systems Command, Naval Air Systems Command, Space Results in Brief and Naval Warfare Systems Command, Naval Supply Systems Com- mand, Naval Facilities Engineering Command, and their support organi- zations are presently housed in 2.27 million square feet of space in 20 buildings in Arlington and Alexandria, Virginia. (See app. I, table 1.1.) GSA has 17 leases, which individually expire from April 1990 through December 1996, for the 20 buildings. Sixteen of the leases are for build- ings in the Crystal City area of Arlington, and 1 lease is for the Hoffman 2 building in Alexandria. GSA’s plans call for the Navy to start moving into a new consolidated space in 1993 and for the move to be completed in 1998. To provide the Navy with space between the expiration of the current leases and the availability of the consolidated space, GSA is nego- tiating or plans to negotiate time extensions at market prices on the cur- rent leases. (See app. I, table 1.2.) GSA pays the building owners from $4.00 to $30.45 per square foot on the 17 leases. GSA’S range of costs reflects the quality of the buildings and the age of the leases. Ninety-two percent of the space is office space. GSA charges DOD from $15.92 to $28.49 per square foot in Rent for the office space. These rates reflect the approximate equivalent com- mercial rate for the space and services provided by GSA. Eight percent of the space is for storage and specially equipped space, such as for auto- mated data processing facilities and food service areas. GSA charges DOD 27 different rates for this type of space, with the rates ranging from $5.67 to $50.89 per square foot. (See app. I, table I.3 for the rates for each building.) Offerors are currently preparing detailed proposals for the design, con- struction, and maintenance of consolidated space under GSA’S ongoing procurement. The offerors are required to submit their proposals to GSA during June 1990. GSA plans call for awarding a contract for the consoli- dated space during June 1991. (See app. I, table 1.4.) Our work was done at the National Capital Regional Office of GSA’S Approach Public Buildings Service (PBS) from March to April 1990. We interviewed contracting personnel and obtained information on the current leases and the schedule for the consolidated lease procurement from PBS’S records. We discussed the information presented in this fact sheet with PBS offi- cials, who agreed that the information we developed was accurate. Page 2 GAO/GGD-gO&WS Navy Office Space B-339599 As arranged with the Subcommittee, unless you publicly announce its contents earlier, we plan no further distribution of this fact sheet until 16 days from the date of this letter. At that time, we will send copies to the House and Senate Committees on Appropriations, House and Senate Committees on Armed Services, Senate Committee on Environment and Public Works, House Committee on Public Works and Transportation, Department of the Navy, General Services Administration, and Office of Management and Budget. We also will make copies available to others upon request. The major contributors to this fact sheet are listed in appendix II. If you have any questions, please call me on 276-8676. Sincerely yours, L. Nye Stevens Director, Government Business Operations Issues Page 3 GAO/GGD4@39FS Navy Office Space Contents Letter Appendix I 6 Information on the Naval Systems Comrnands’ Location and GSA’s Leases Appendix II 10 Major Contributors to General Government Division, Washington, D.C. 10 This Fact Sheet Tables Table 1.1: Current Space for the Naval Systems 6 Commands and Support Organizations Table 1.2: Schedule Showing Current Lease Expirations 8 and Planned Move to Consolidated Space Table 1.3: GSA’s Lease Cost for Navy Space and Amount 9 That GSA Charges DOD for This Space Table 1.4: GSA’s Acquisition Schedule for Consolidated 9 Navy Lease Abbreviations DOD Department of Defense GSA General Services Administration PBS Public Buildings Service Page 4 GAO/GGD9@39F’S Navy Office Space Page 5 GAO/GGD99-39FS Navy Offlce Space Appendix I Infomation on the Naval Systems comma;nds’ Location md GSA’s Leases Table 1.1: Current Space for the Naval Systems Commands and Support Organizations Organization Building Naval Sea Systems Command Zachary Taylor 379,995 James Polk 284,710 Century 58,295 Crystal Plaza 5 57,155 Crystal Mall 2 53,986 Crystal Park 1 43,760 Crystal Plaza 6 23,074 Crystal Mall 4 10,000 Eads and Fern Stsa 4,532 Crystal Mall 3 3,000 918,507 Naval Air Systems Command Jefferson Plaza 1, 2 391,470 Crystal Gateway 4 48,220 Crystal Gateway 1 35,000 Martin Van Buren 5,518 Eads and Fern Stsa 5,336 Crystal Gateway 3 4,045 489,589 Space and Naval Warfare Martin Van Buren 252,383 Systems Command Crystal Mall 2 5,884 258,267 Naval Supply Systems Command Crystal Mall 3 136,277 Crystal Park 1 36,087 Eads and Fern Sts.” 17,400 Crystal Mall 2 4,510 Martin Van Buren 3,209 Crystal Mall 4 2,700 Crystal Plaza 6 2,400 Jeferson Plaza 1, 2 2,360 204,943 Naval Facilities Engineering Command Hoffman 2 118,285 Strategic Systems Project Office Crystal Mall 3 84,887 Comptroller of the Navy Crystal Mall 3 37,620 Crystal Mall 2 8,865 Crystal Gateway 4 5,219 51,704 Assistant Secretary of the Navy (Installations and Crystal Plaza 5 Environment) 45,450 (continued) Page 6 GAO/GGD9@39FS Navy Office Space Appendix I Information on the Naval System Cmnmands’ Location and GSA’s Lessee Organization Building Navy Office of Technical Crystal Plaza 6 13,735 TransferBecuritv Assistance Crvstal Plaza 5 3.730 17,485 Office of the General Counsel Crvstal Plaza 6 8.720 Crystal Plaza 5 8,495 17,215 Personnel Support Detachment Crystal Mall 3 15,049 Naval Audit Service/Capital Crystal Mall 4 6,595 Region Martin Van Buren 4,672 Crystal Square 5 2,080 13,347 Navy Regional Data Automation Center Crystal Mall 3 11,600 Navy Federal Credit Union Crystal Square 5 5,155 Zacharv Tavlor 3,296 8,451 Naval Telecommunications Command/Washinaton Crvstal Plaza 6 7.885 British Navy Crystal Plaza 6 6,055 !!$wwariat Headquarters, Civilian Personnel Crystal Plaza 6 2.970 Naval Intelligence Command Crystal Plaza 5 1,675 Total Space 2,273,344 “GSA’s records list the addresses for the buildings as 1400-1430 S. Eads St., 1201-1301, and 1411 S Fern St. without providing a name for the buildings. Page 7 GAO/GGD-!M-SSFs Navy Office Space Appendix I Information on the Naval Systema Commands’ Location and GSA% Leases Table 1.2: Schedule Showing Current Lease Expiratlons and Planned Move to Schedule for Concrolidsted Space Current move to lease consolidated Suildina expires space Century VA01 3022 IO/i 5191 1z/94 Crystal Gateway 1 VA021 522 0 l/07/92 12193 Crystal Gatewav 3 VAO24OZZ 12/04/96 12193 Crystal Gateway 4 VAO25OZZ 10/31/91 12194 Crystal Mali 2,3, and 4 VA141 IZZ 02/l l/95 12197 Crvstal Park 1 VA0251 ZZ 05131 I96 12/98 Crystal Plaza 5 VAl324ZZ 02/29/92 12197 Crystal Plaza 6 VA1 28722 08/31/91 12197 Crvstal Sauare 5 VA1 606ZZ 12131I92 12197 Hoffman 2 VA1 54522 02125193 12197 James Polk VA1447ZZ 07/07/90 12195 Jefferson Plaza 1 and 2 VA1 45022 04/30/90 12193 Martin Van Buren VA1 44622 06/l 8190 12196 Zachary Taylor VA1451ZZ 09/l 9190 12198 1400-1430 S. Eads St.a VA1 14722 10/31/90 12198 1411 S. Fern St.” VA1 24722 05131I90 12194 1201-1301 S. Fern St.” VA1 19522 11I25190 12193 aGSA’s records do not provide names for these buildings. Page 8 GAO/GGIM@3SFfj Navy Office Space Appendix I Information on the Naval Systems Canmands’ Location and GSA’s Leases ___~_~ - Table 1.3: GSA’8 Lease Coat for Navy Space and Amount That GSA Charges GSA’s coat OSA charge DOD for This Space Building per square to DOD per Buildina number foot sciuare fooP Century VA01 3022 $19.27 $23.48 Crystal Gateway 1 VA021 522 20.20 23.89 Crvstal Gatewav 3 VAO24OZZ 25.24 28.27 Crystal Gateway 4 VAO25OZZ 27.07 28.49 Crystal Mall 2, 3, and 4 VA1411ZZ 19.80 21.86 Crystal Park 1 VA0251 ZZ 30.45 27.95 Crvstal Plaza 5 VA1 32422 20.08 21.86 Crystal Plaza 6 VA1 28722 19.10 21.86 Crystal Square 5 VA1 606ZZ 23.10 23.48 Hoffman 2 VA1 54522 6.02 17.29 James Polk VAl447ZZ 6.44 21.86 Jefferson Plaza 1 and 2 VA1 45022 7.89 21.86 Martin Van Buren VA1 4462 8.05 21.86 Zachary Taylor VA1451 ZZ 7.66 21.86 1400-1430 S. Eads Stb VA1 14722 4.00 c 1411 S. Fern St.b VA1 24722 5.93 16.50 1201-1301 S. Fern Stb VA1 195ZZ 8.68 15.92 aThese charges are for office space. In addition to office space, DOD is charged for seven categories of storage and specially equipped space. About 8 percent of the Navy’s space is for such space, with GSA charging 27 different rates that range from $5.67 to $50.89. “GSA’s records do not provide names for these buildings CGSA’s records show that DOD does not have office space in this building. However, DOD is charged $567 per square foot for storage space. Table 1.4: GSA’8 Acquisition Schedule for Conrolldated Navy Lease Action Date Solicitation for offers was issued telling offerors to prepare proposals October 4, 1989 for two separate phases. Phase I proposals were to include information on the offerors’ qualifications, site proposals, expected costs, and financial capability. Phase II proposals were to include the data needed for an evaluation of the design, construction, and maintenance of the proposed facilities. GSA received Phase 1 proposals from offerors. November 20,1989 GSA requested offerors to submit Phase II proposals. January 9,199O Due date for submission of Phase II proposals to GSA. June 18,199O GSA plans to request best and final offers after initial contract November 15.1990 negotiations. Deputy Regional Administrator is scheduled to receive an award December 30,199O recommendation from GSA personnel evaluatina proposals. Y Congressional briefings are planned to begin. January 28,199l Contract award date. June 1,199l Page 9 GAO/GGD-99-39PS Navy OftIce Space Appendix II Major Contributors to This Fact Sheet William Engel, Assistant Director, Government Business Operations General Government Issues Division, Washington, Robert M. Antonio, Evaluator-in-Charge DC. - . (240018) Page 10 GAO/GGD-99-99FS Navy Office Space _.- _.-. - _-.“.--_--.__ - _...__..-- __._ - -.-_------___I_ .--_- _l_- _---.-~- ‘I’tw first fivth copit- of twch rt~[mrt, art’ fret*. Atltlitit~wtl copies art* 52.00 tw+h. ‘I’lwrt~ is it 25”~~disctmnl. 011ordt*rs for 100 or more copit mwilt~tl to ii single ;ulthss.
Navy Office Space: Consolidating Space in Northern Virginia for the Five Systems Commands
Published by the Government Accountability Office on 1990-06-28.
Below is a raw (and likely hideous) rendition of the original report. (PDF)