GSA Plans to Dispose Non-Core Assets via CMS Optimization
The disposal of non-core assets is expected to result in a more efficient and cost-effective use of federal resources, with the GSA considering various disposition strategies to maximize the value of its assets and engaging in market research and customer agency feedback to determine the best approach, all of which will be managed through a centralized CMS system.
The General Services Administration (GSA) has identified 440 non-core assets, including its own headquarters and those of 12 other federal agencies, for possible disposal to optimize its portfolio and provide better workspace solutions for federal agencies, leveraging the private sector and saving taxpayers over $430 million in annual operating costs.
The list of non-core assets includes office buildings from various federal agencies such as the departments of Agriculture, Energy, Labor, Justice, Housing and Urban Development, Veterans Affairs, and Health and Human Services, as well as the FBI, Federal Aviation Administration, and Office of Personnel Management. These assets, totaling 80 million square feet of mostly office space, would require $8 billion to revitalize and could save the federal government a significant amount in operating costs each year.
The GSA plans to sell or dispose of these properties to drive improvements for its agency customers and leverage the private sector. The agency has also identified core federally-owned assets, including courthouses, land ports of entry, and facilities critical to national defense and law enforcement, which will be retained for long-term needs. The GSA's Public Buildings Service will oversee the process, which is expected to result in a more efficient and cost-effective use of federal resources.
As part of its restructuring efforts, the GSA has announced deep cuts to its workforce, terminating about 600 employees as part of a nonvoluntary Reduction in Force. The agency will consider various disposition strategies, such as sale-lease backs, ground leases, and public-private partnerships, to maximize the value of its non-core assets and engage in market research and customer agency feedback to determine the best approach.
The GSA's plan to dispose of non-core assets is expected to have a significant impact on the federal government's budget and operations, and the agency is working to ensure a smooth transition for its employees and customers. The move is part of the agency's efforts to optimize its portfolio and provide better workspace solutions for federal agencies, while also saving taxpayers money and leveraging the private sector.
