Hearing

Opening remarks, as prepared, of Subcommittee on Economic Development, Public Buildings, and Emergency Management Ranking Member Mark Meadows (R-NC):

Reducing costs and increasing efficiency in federal real estate has been a bipartisan issue.  This subcommittee has worked and continues to work to ensure federal space is right-sized, used efficiently, consolidated, and sold if not needed.

For example, just last week my colleague, Mr. Pence, and I introduced reform legislation that will provide GSA with the tools needed to replace expiring leases with good deals for the taxpayer and expand opportunities to consolidate and reduce space.

These are not controversial issues – these are effective solutions that we know will reduce costs.

As we examine efficiency issues, including energy and water usage, it is important we apply those same principles in this context to ensure such solutions are effective and will reduce costs.

But there are challenges we must address.  For example, nearly 50% of GSA’s owned building inventory is more than 50 years old.  More than 50% of GSA’s space is now in leased facilities and there is limited funding for new construction.

If we are serious about building in efficiency, we must look to new ways of approaching the financing of federal facilities.  Federal agencies already can take advantage of performance contracting, which provides a way to finance improvements by leveraging private dollars.  However, these presume a building is already built or that there is funding for construction.  If we are serious about efficiency, we should be doing more with public-private partnerships, or P3s.

For example, P3s such as Design-Build-Finance-Manage-Operate, would allow for new efficient buildings to be constructed and ensure efficiency is maintained throughout the life of the building.

Ultimately, our goals in building efficiency are effectiveness and reducing costs.  We must ensure solutions are, in fact, effective – that we aren’t “greening” to just “green.”

We also must ensure a return on investment.  Solutions should reduce costs for the taxpayer.

To achieve effectiveness and return on investment, there must be some flexibility and competition in the solutions.  New space solutions are different than those for historic space.  Office space is different than warehouse space or a testing facility.  We must ensure standards are flexible and that agencies have choices in the certifications they use to meet their needs.

GSA has a unique role in this regard.  GSA provides recommendations government-wide but also has the responsibility of improving efficiency in its own facilities.