Part 1. Organization, Finance and Management

Chapter 14. Real Estate and Facilities Management

Section 8. Identifying Space Efficient Buildings

1.14.8  Identifying Space Efficient Buildings

1.14.8.1  (11-01-2007)
Evaluating Proposed Office Space

  1. This section provides Real Estate and Facilities Management (REFM) Territory Managers and their staffs with information to evaluate proposed leased properties for space efficiency.

  2. This section applies to the evaluation of all future office space leasing procurements, whether through the General Services Administration (GSA) or through the IRS Delegated Leasing program

1.14.8.2  (11-01-2007)
Effectively Managing and Utilizing Space

  1. With one of its goals being to "maximize resources" , REFM is required to manage its stewardship funds, which make up the bulk of the REFM budget, as effectively as possible. Since the stewardship budget consists mostly of rent, one of the ways REFM can best administer its rent costs is through effectively managing and utilizing space. This can be accomplished by leasing office space that is configured in such a way as to maximize the efficiency of floor plan and furniture layouts.

  2. In 2004 the IRS and GSA signed the IRS and GSA Strategic Real Estate Expense Management Strategy Charter (09/20/04) http://awss.web.irs.gov/facilities/RealEstate/IRSandGSA.pdf in which GSA agreed that its primary focus in supporting the IRS mission was to "...ensure that the provision of real estate accommodations and related services......create the best value for the IRS...." The parties further agreed to " .....consider all possible opportunities to identify solutions for reducing real estate costs..."

  3. In February 2005 the Treasury Department granted Delegated Leasing authority to IRS and through this program IRS remains committed to the same principles for creating the best value in leasing acquisitions as agreed to in the IRS and GSA Strategic Real Estate Expense Management Strategy Charter.

1.14.8.3  (11-01-2007)
Responsibilities

  1. REFM Territory Managers shall insure that their real estate staff and either GSA or the Real Property Leasing Officer (RPLO) identify options that provide the best value to IRS in terms of cost and space efficiency.

  2. REFM Territory Managers shall insure that the requirements for new or continuing leases are developed far enough in advance to allow properties to be evaluated for space efficiency;

  3. REFM field staff shall identify for GSA, or the RPLO, space efficiency features important for the specific lease procurement requirement;

  4. Project Managers shall include the evaluation for space efficiency in the project files

1.14.8.4  (11-01-2007)
Minimizing Rental Costs

  1. When acquiring new space, the most obvious means of reducing real estate costs are to

    1. obtain the lowest possible rental rates and

    2. to lease only the minimally required area necessary for IRS to accomplish its mission.

  2. Rental costs can be further minimized by selecting the most " space efficient" building possible. A variety of factors influence the efficiency of any given floor plate so that two buildings with the same amount of BOMA "usable" square feet may yield significantly different levels of efficiency. For example, a building with a 20 foot by 30 foot column spacing would be much more efficient than one with a 20 foot by 15 foot column spacing. It is not only the actual area taken up by these extra columns, but the interruption of clear open space required for efficient furniture placement.

  3. Other factors such as the age of the building inventory, the requirements of the business unit or the number of leasing opportunities in any market may influence which "space efficient" features can be best utilized.

  4. The Territory has the obligation to evaluate potential lease sites based on conditions unique to the Territory:

    1. In locations where the housing plan is unstable and space requirements may vary over time, the Territory should avoid sites where the building core location or other elements of the floor plan preclude IRS from releasing back "useful" portions of space to GSA.

    2. Conversely, a business unit that expects its long term requirements to remain stable, and the potential for the future release of space is unlikely, should consider space on a single, larger and more efficient floor rather than on multiple smaller floors.

1.14.8.5  (11-01-2007)
Building Conditions that Affect Space Efficiency

  1. The following are building factors or conditions that should be taken into account when evaluating a proposed office for space efficiency.

  2. Floor Plates

    1. Full floors measuring 20,000 - 26,000 square feet with a single core are most efficient;

    2. Full floors measuring 10,000 - 16,000 square feet are typically inefficient;

    3. Rectangular floor plates with a single center core are most efficient;

    4. Buildings with curved exteriors are not efficient, especially for workstation layouts.

  3. Building Cores

    1. Split cores (e.g. stairwells are separated from the main core) may affect space layouts and will result in more circulation space;

    2. A core not centered on a floor may make it difficult to release "useful" space to GSA.

  4. Walls & Columns

    1. Permanent walls constructed within the interior of a floor may affect optimal furniture layout and result in more circulation space;

    2. Extremely long, narrow runs of space can affect optimal furniture and office layouts;

    3. The depth of perimeter columns can affect optimal furniture and office layouts since deeper columns can create unusable pockets of space between the columns;

    4. Column dimensions greater than 24 x 24 will create inefficiencies;

    5. Inconsistent column spacing will usually create inefficiencies;

    6. Column spacing less than 20' x 20' on center of the column will affect optimal furniture layout. Newer steel or concrete construction buildings may have clear spans with few to no intervening columns.

  5. Ceilings

    1. A standard SFO prescribes height minimums, but low ceiling conditions will restrict use of space;

    2. Sloped ceilings will restrict use of the space.

  6. Windows

    1. Office Area square feet (usable square feet) is typically measured from the inside of the dominant feature of the exterior wall, which in most cases is the window glass. When window systems are situated in "deep pockets" of drywall, the result is more unusable space.

  7. Mechanical / Electrical System Conditions

    1. Walker duct floor systems for electric, telephone, and data receptacles will limit furniture and office layouts;

    2. Induction units and baseboard heaters along the perimeter of the premises will affect optimal furniture layout;

    3. the main air return duct for a floor usually creates a noisy condition as it enters the mechanical room. The SFO includes noise tolerances, but this specific location may still restrict use of the floor space nearby.

  8. Suite Configuration and Contiguous Space

    1. Irregular suite configurations will impact furniture and office layouts;

    2. Locating a requirement in the fewest number of suites within a building is the most efficient and flexible work arrangement.

  9. The following Building Common Area features will not make the tenant premises more or less efficient. However, the existence of these features in a building may increase the R/U factor (Rentable / Usable) and may result in higher rental costs:

    1. The size of the main building lobby

    2. The floor space pertinent to an atrium or light well

    3. Common service areas such as building conference facilities, fitness centers and vending areas

    4. Buildings with an R/U factor greater than 1.15 should be carefully scrutinized especially if the Office Area space is not largely efficient.

1.14.8.6  (11-01-2007)
Solicitations for Offers Evaluations

  1. The standard GSA and IRS Solicitation for Offers (SFO) include language requiring that the space offered has ".... a potential for efficient layout."

    1. When initial offers are evaluated the Territory shall determine whether IRS space requirements can be met within the square footage offered. If, due to inefficiencies, these requirements cannot be met, then the offer is unacceptable.

    2. If it is not clear as to whether IRS requirements can be accommodated, the Territory, as permitted by the SFO, should make a request to have the Offeror provide a test-fit layout at the Offeror's expense. The Territory shall evaluate the test-fit layout and make a determination as to whether the space offered is acceptable based on the efficiency of the floor plans.

1.14.8.7  (11-01-2007)
Solicitations for Offers Language

  1. The following language should be included in every SFO exceeding the Simplified Lease Acquisition Threshold (SLAT), which is $100,000 net annual rental. This language should also be included in SFO's below the SLAT of there is a concern that a building may not yield an efficient layout:

    Note:

    for Delegated Leases, substitute "Internal Revenue Service (IRS) " for "General Services Administration (GSA)"

    1. The General Services Administration (GSA) is interested in leasing approximately _____ rentable square feet of space. The rentable space shall yield a minimum of ______ ANSI/BOMA Office Area (previously Usable) square feet to a maximum of ___________ ANSI/BOMA Office Area square feet, available for use by tenant for personnel, furnishings and equipment. Refer to the "ANSI/BOMA Office Area Square Feet" paragraph in the MISCELLANEOUS section of this Solicitation for Offers (SFO.)

    2. The Offer shall 1) be for space located in a quality building of sound and substantial construction as described in this SFO, 2) have a potential for efficient layout, 3) be within the square footage range to be considered, and 4) be in compliance with all of the Government's minimum requirements set forth herein. For purposes of this SFO, the definition of ANSI/BOMA Office Area square feet is in the "ANSI/BOMA Office Area Square Feet " paragraph in the MISCELLANEOUS section of this SFO.

    3. To demonstrate potential for efficient layout, the Offeror may be requested to provide a test fit layout at the Offeror's expense when the space offered contains certain features like:

      • narrow column spacing;

      • atriums, light wells, or other areas interrupting contiguous spaces;

      • extremely long, narrow runs of space;

      • irregular space configurations; or

      • other unusual building features.

    4. The Government will advise the Offeror if the test fit layout demonstrates that the Government's requirement cannot be accommodated within the space offered. The Offeror will have the option of increasing the ANSI/BOMA Office Area square footage offered, provided that it does not exceed the maximum ANSI/BOMA Office Area square footage in this SFO. If the Offeror is already providing the maximum ANSI/BOMA Office Area square footage and cannot house the Government's space requirements, then the Government will advise the Offeror that the offer is unacceptable.


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