The RTF policy requires agencies to: (1) submit annual Real  Property Efficiency Plans (Plan) to GSA and OMB; (2) issue a policy that  specifies a design standard for maximum useable square feet by  workstation for use in domestic office space; (3) set and specify in their  Plans annual reduction targets for their domestic office and warehouse  space for a 5-year period; (4) set and specify in their Plans annual  reduction targets for domestic owned building properties reported in the  Federal Real Property Profile; and (5) continue to not increase the square  footage of their domestic inventory of office and warehouse space. For example, the Department  of Agriculture (USDA) discussed a consolidation project involving five  component agencies in Albuquerque, New Mexico, in its fiscal year  2017 Plan. Three of the 24 agencies specifically noted that the cost to clean up  environmentally contaminated buildings is a challenge to disposing of  excess office and warehouse space. Mission delivery: Thirteen of the 24 agencies reported that mission  delivery requirements can also affect their ability to reduce space. According to an OMB official, to help ensure the targets are  realistic, agencies are also required to identify the specific projects that  will help them to achieve their space reduction targets. Each agency is required to  document its internal controls, such as the process for identifying and  prioritizing reductions to office and warehouse space and disposal of  properties based on return on investment and mission requirements. In fiscal year 2016—the first and only year RTF data were available at the  time of our review—the majority (71 percent or 17 of the 24 agencies)  reported they achieved reductions in their office and warehouse space  even though the agencies had varying success in achieving the individual  targets they set for themselves. For example, as shown in figure 2, of  the 17 agencies that reduced space, 9 exceeded their targets (i.e.,  reduced more space than planned); 7 reduced space but missed their  target (by anywhere between 2.8 and 96.7 percent); and 1 agency  expected to increase in square footage, but reduced space. As a  result of this new process, GSA established a centralized e-mail for  agencies to submit their space release requests. GSA regional officials told us that  they work closely with the agencies in their space consolidation and  reduction efforts to minimize the likelihood that GSA would be caught off  guard by a release of space. According to GSA regional officials,  agencies’ requests to return space prior to the end of their occupancy  agreements appear to have increased since the implementation of the  RTF policy. Thus far, GSA has processes to manage agencies’ space  release requests and keep its vacant space to a minimum. However, it is  too early to determine how the recent increase in space release requests,  in combination with agencies’ continued focus on occupying a smaller  footprint and reducing their square footage, will affect: (1) the size of  GSA’s inventory of vacant space in the long term, (2) GSA’s regional  office workload to manage the requests, and (3) the cost savings for the  federal government. Agency Comments

We provided a draft of this report to GSA, OMB, Commerce, Energy,  HUD, Interior, and Treasury for review and comment. Appendix I: Objectives, Scope, and Methodology

Our objectives were to determine: (1) the approaches and any challenges  the 24 Chief Financial Officers (CFO) Act agencies identified to  achieving their Reduce the Footprint (RTF) reduction targets for all their  domestic office and warehouse space; (2) the extent to which these  agencies reduced space and met their fiscal year 2016 RTF targets; and  (3) how the General Services Administration (GSA) manages vacated  space that it had leased to these agencies. To determine the approaches used and any challenges faced by the CFO  Act agencies in achieving their RTF reduction targets for all their domestic  office and warehouse space, we conducted a content analysis of the  agencies’ 5-year Real Property Efficiency Plans (Plans) for fiscal years  2016 and 2017. For our case study  agencies, to the extent possible, we have provided updated information  from agency officials as of December 2017. We selected five agencies as case studies to inform our first two  objectives. To determine to what extent agencies reduced their space and met their  fiscal year 2016 RTF targets, we analyzed the 24 CFO Act agencies’ data  as submitted to GSA on their RTF targets and reported reductions for  fiscal year 2016.
Why GAO Did This Study

The federal government continues to work to reduce its real property inventory and associated costs. GSA provides space for agencies in government-owned and commercially leased buildings. In 2015, the OMB issued a memorandum requiring the 24 agencies with chief financial officers to reduce their domestic office and warehouse space. These agencies are required to set annual reduction targets for a 5-year time period and update their real property plans annually.
GAO was asked to review the implementation of this space reduction initiative. This report discusses: (1) the approaches and any challenges the 24 agencies identified to achieving their reduction targets for all their domestic office and warehouse space; (2) the extent these agencies reduced their space and met their fiscal year 2016 targets; and (3) how GSA manages vacated space it had leased to these agencies.
GAO conducted a content analysis of the 24 agencies' real property plans for fiscal years 2016 and 2017 and analyzed agencies' data as submitted to GSA on their targets and reductions for fiscal year 2016, the only year for which data were available. GAO selected five agencies as case studies based on several factors, including size of the agencies' office and warehouse portfolio, agency reduction targets, and fiscal year 2016 reported reductions. GAO reviewed relevant documentation and interviewed officials from GSA, OMB, and GAO's case study agencies. GAO provided a draft of this product to GSA, OMB, and our case study agencies for comment. GAO incorporated technical comments, as appropriate.

What GAO Found

Most of the 24 agencies with chief financial officers reported to the Office of Management and Budget (OMB) and the General Services Administration (GSA) that they planned to consolidate their office and warehouse space and allocate fewer square feet per employee as the key ways to achieve their space reduction targets. For example, the Department of Agriculture reported it will consolidate staff from five component agencies in two office buildings. When complete, the space allocated per employee will average about 250 square feet down from a high of 420 square feet per employee. In taking these actions, the agencies most often identified the cost of space reduction projects as a challenge to achieving their targets. Agencies cited costs such as for space renovations to accommodate more staff and required environmental clean-up before disposing of property as challenges to completing projects. Some agencies required to maintain offices across the country reported that their mission requirements limit their ability to reduce their space.
In fiscal year 2016, 17 of the 24 agencies reported they reduced their space, but had varying success achieving their first-year targets. Of the 17 agencies, 9 exceeded their target and reduced more space than planned, 7 missed their target (by anywhere between 2.8 and 96.7 percent), and 1 reduced space, despite a targeted increase. Agency officials said that it is not unusual for projects to shift to different years and that such shifts could lead to missing targets one year and exceeding them the next.
GSA has processes to manage the space vacated by agencies that is leased through GSA. For example, starting in November 2016, GSA started tracking agencies' space release requests centrally to help standardize the process and established an e-mail address to which agencies can submit requests. GSA relies on regional offices to manage real property in their regions and to identify tenants for vacant space or to remove unused space from the inventory. GSA's regional officials said regular monitoring and coordinating with agencies minimizes the likelihood GSA is caught off guard by a return of space. These processes also help them to plan ahead. GSA met its 2016 performance goal to have an annual vacant space rate of no more than 3.2 percent in its federally owned and leased buildings. However, given the recent implementation of the space reduction initiative, it is too early to determine the extent to which agencies will return space to GSA prior to the end of their leases and the effect on GSA's inventory.