U.S. General Services Administration
Lease Cost Avoidance
The Lease Cost Avoidance (LCA) plan allows Public Buildings Service (PBS) to timely replace expiring leases to avoid increases in lease costs—the LCA plan will avoid approximately $4 billion in cost on leases becoming effective through Fiscal Year 2023.
As the targeted leases near expiration, we seek to avoid costs by:
- Establishing longer, firm-term leases.
- Negotiating favorable rates.
- Reducing rentable square feet and utilizing Workplace Strategy.
- Utilizing online lease replacement tools such as Automated Advanced Acquistion Program (AAAP) and Requirement Specific Acquisition Platform (RSAP).
- Backfilling vacant federal or leased space.
- Accelerating lease cycle time.
Success stories
Below are examples where these efforts resulted in significant cost avoidance.
Courthouse Program Project—This program ensures project delivery within budget for 14 new or modernized courthouses, totaling up to 1.7 million gross square feet of space.
Department of Labor—Their long-term lease was negotiated 52% below the market rate, reduced their footprint by 31%, and was awarded with a 10-year firm term.
Department of Health and Human Services—Their long-term lease was negotiated 47% below the market rate, reduced their footprint by 28%, and was awarded with a 10-year firm term.
Department of Housing and Urban Development—Their long-term lease reduced their footprint by 43% and was awarded with a 10-year firm term.
Bureau of Alcohol, Tobacco, Firearms, and Explosives—Their long-term lease reduced their footprint by 30% and was awarded with a 10-year firm term.