GSA and SSA Successfully Execute First SSA National Turnkey Pilot Lease
GSA and the Social Security Administration (SSA) began working together in 2009 to explore the possible development and execution of a turnkey lease. The intent was to determine if negotiating tenant improvement costs prior to lease award would result in reduced construction costs and project cycle times.
The approach developed by GSA and SSA in the turnkey pilot was to develop a Program of Requirements (POR) to be provided to an offeror prior to lease award. The primary goal was to articulate a typical SSA Design Intent Drawing (DID), which usually occurs after a lease award, into a biddable attachment package to the solicitation. Providing this POR to an offeror up-front would allow them to develop a detailed, price specific offer with a more concrete schedule.
A strong collaborative partnership between GSA and SSA contributed to the pilot’s success. SSA took the lead on developing their POR content, while GSA provided expertise to assist in POR development and crafted the language to be used in the turnkey lease. The resulting lease project was a combination of the GSA national solicitation package, a Regional SSA Special Requirements Package, and the pilot POR.
GSA and SSA executed this pilot project in Fredericksburg, VA, awarding an 8,385 rentable square foot lease. The space was accepted in early December 2012, marking the first national turnkey lease to be occupied by SSA. Although some delays occurred due to market conditions, the turnkey lease pilot was well-received and understood by the real estate market. During the course of the pilot, GSA was also developing the Streamlined Lease Model, aimed at reducing the time spent in post-award design, reducing the number of change orders, and lowering the risk of cost increases. This pilot tested the concepts and process behind the anticipated Model.
This pilot project reinforced to stakeholders that early development of a POR with firm agency requirements decreases lead time during the design stage and reduces change orders during construction. The turnkey pilot lease established this process as a successful, repeatable model, and can be a beneficial option to consider for other agencies with standard office models.