Central ND News

WASHINGTON – U.S. Senator Mark Kelly (D-AZ), Chairman, and U.S. Senator Kevin Cramer (R-ND), Ranking Member, held a Senate Environment and Public Works (EPW) Subcommittee on Transportation and Infrastructure hearing today that focused on the General Services Administration’s (GSA) Public Buildings Service (PBS).

Commissioner Elliot Doomes testified before the subcommittee on behalf of the GSA. The oversight hearing concentrated on the GSA’s management of the federal government’s expansive real estate portfolio, which includes more than 363 million square feet across nearly 8,400 buildings nationwide.

A recent Government Accountability Office (GAO) study published last October found that 17 of 24 surveyed federal agencies used an estimated 25 percent or less of their headquarters' capacity. In 2023 alone, federal agencies reported over 5,000 buildings as either underutilized or unutilized altogether. This issue has been exacerbated by agencies’ adoption of remote work policies.

In his opening statement, Cramer explained that while these numbers are alarming, this is not a new problem. "In 2003, the GAO placed the management of federal buildings on its High-Risk List due to the high financial cost of underutilized space and the complex, seemingly unworkable process of actually disposing of these properties," he said. "Put more simply, like most things, the federal footprint is too big and it’s nearly impossible to shrink it. […] The current practice of spending billions of taxpayer dollars each year to operate federal buildings, regardless of their utilization, must come to an end."

Cramer emphasized his commitment to finding bipartisan solutions to address this issue: "I understand more than 50% of GSA’s managed leases are set to expire by 2027, and I encourage the agency to take full advantage of this opportunity to right-size the federal real estate portfolio."

Referencing the GAO report's findings on building utilization rates among federal agencies, Cramer asked Commissioner Doomes about actions taken by GSA to ensure better usage: "To me... arguably the most concerning finding was that a majority were using 25 percent or less... But equally concerning was that the highest average was still less than 50 percent." He continued by asking for specific measures being implemented by GSA: "Following the release... can you give me some GSA actions... trying to find ways to eliminate waste?"

Cramer also discussed opportunities for disposing unneeded property in coming years and queried Commissioner Doomes about potential market interest: "The Public Buildings Reform Board concluded that billions are being spent on buildings that should be disposed given low occupancy," he noted. "But we do have an opportunity... over 50 percent of leases are going to expire in 2027... Is there a market? [...] What can you tell me about it?"

Congress passed the Federal Assets Sale and Transfer Act (FASTA) in 2016 with aims to streamline disposal processes for unneeded federal properties. However, challenges identified by PBRB have impacted FASTA's overall effectiveness. In response, Senators Cramer and Kelly introduced FASTA Reform Act last October to address existing issues and facilitate a successful final round; their bill passed out of EPW Committee in May.