[House Report 118-408]
[From the U.S. Government Publishing Office]


118th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      118-408

======================================================================



 
           MAXIMIZING OFFICE VALUE AND EFFICIENCY ACT OF 2023

                                _______
                                

 March 5, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Graves of Missouri, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 6278]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 6278) to direct the Administrator 
of General Services to identify two Federal agencies to 
consolidate into the GSA Headquarters Building, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     3
Committee Votes..................................................     3
Committee Oversight Findings and Recommendations.................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     4
Performance Goals and Objectives.................................     6
Duplication of Federal Programs..................................     6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     6
Federal Mandates Statement.......................................     6
Preemption Clarification.........................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-By-Section Analysis of The Legislation...................     7
    Section 1. Short Title.......................................     7
    Section 2. Public Building Consolidation and Sale............     7
Changes in Existing Law Made by the Bill, as Reported............     7

                         PURPOSE OF LEGISLATION

    The purpose of H.R. 6278, the Maximizing Office Value and 
Efficiency (MOVE) Act of 2023, is to direct the Administrator 
of General Services to identify two Federal agencies to 
consolidate into the GSA Headquarters Building, and for other 
purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The General Services Administration (GSA) currently manages 
8,800 owned and leased assets, totaling over 370 million square 
feet, and 500 historic buildings.\1\ Of the 370 million square 
feet, 181 million is in leased space, which is comprised of 
over 6,659 buildings and costs more than six billion dollars 
per year.\2\ While GSA continues to reduce the amount of leased 
space, more than half of GSA's operating leases (96 million 
square feet) will expire in the next five years.\3\
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    \1\Press Release, GSA, Nina M. Albert Appointed Commissioner of 
GSA's Public Buildings Service, (July 6, 2021), available at https://
www.gsa.gov/about-us/newsroom/news-releases/nina-m-albert-appointed-
commissioner-of-gsas-public-buildings-service-07062021.
    \2\GSA, Inventory of GSA Owned and Leased Properties, (Last 
reviewed Sept. 9, 2022), available at https://www.gsa.gov/tools-
overview/buildings-and-real-estate-tools/inventory-of-gsa-owned-and-
leased-properties.
    \3\Id.
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    Currently, office occupancy in the Washington, D.C., metro 
area is still below 54 percent of pre-pandemic levels.\4\ 
Additionally, 30 percent of the Federal workforce is expected 
to be eligible to retire this year.\5\ There have also been 
increasing reports of ``shadow'' or ``dark'' space in Federal 
buildings and leases which is unassigned, unused space.\6\ The 
concerns about ``shadow'' or ``dark'' space were further 
emphasized during the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management of the Committee on 
Transportation and Infrastructure's Roundtable on ``The State 
of Federal Real Estate,'' held on March 22, 2023, where 
participants noted that 30 percent of Federal employees plan to 
retire within the next five years and nearly 30 percent of 
Federal employees with remote work agreements live outside 
their assigned region.\7\
---------------------------------------------------------------------------
    \4\Bailey McConnel, Chart of the Week: Office Occupancy Rates and 
Remote Work, D.C. Policy Center, (Feb. 24, 2023), available at https://
www.dcpolicycenter.org/publications/office-occupancy-remote-work-dc/.
    \5\Angie Petty, 2023 Workforce Federal Contracting Trends to Watch, 
GovWin, (Dec. 7, 2022), available at https://iq.govwin.com/neo/
marketAnalysis/view/2023-Workforce-Federal-Contracting-Trends-to-Watch/
6981?researchTypeId=1&researchMarket.
    \6\GSA, Unused & Underused Space, (Last reviewed Mar. 4, 2022), 
available at https://www.gsa.gov/real-estate/gsa-properties/unused-
underused-space.
    \7\The State of Federal Real Estate: Roundtable Before the Subcomm. 
on Economic Development, Public Buildings, and Emergency Management of 
the H. Comm. on Transp. and Infrastructure, 118th Cong., (Mar. 22, 
2023).
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    During the 117th Congress, the Committee requested the 
Government Accountability Office (GAO) conduct a study on 
office space utilization rates across the 24 Chief Financial 
Officer (CFO) Act agency headquarters to better understand how 
the Federal Government is utilizing its real estate 
portfolio.\8\ In order to assess space utilization, GAO 
collected building size and attendance data from all 24 
agencies for one week each in January, February, and March of 
2023. Utilization was then calculated by dividing in-office 
attendance by the building's useable square footage or 
capacity.\9\ GAO found that on average, 17 of the 24 CFO agency 
headquarters were at 25 percent or less utilization.\10\ GAO 
found the GSA Headquarters specifically was at a nine percent 
utilization.\11\
---------------------------------------------------------------------------
    \8\Letter from Peter DeFazio, Chairman, H. Comm. on Transp. and 
Infrastructure, et al. to Gene Dodaro, Comptroller General, GAO (Nov. 
10, 2021) (on file with Comm.).
    \9\Briefing from Staff, GAO, to Staff, H. Comm. on Transp. and 
Infrastructure (June 26, 2023, 11:00 AM EST).
    \10\GAO, GAO-24-107006, Federal Real Property: Agencies Need New 
Benchmarks and Shed Underutilized Space (2023) available at https://
www.gao.gov/assets/d24107006.pdf.
    \11\Id.
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    GSA's Headquarters Building, located at 1800 F Street NW, 
Washington D.C., was originally constructed in 1917 to serve as 
the headquarters for the Department of the Interior and later 
became GSA's Headquarters.\12\ H.R. 6278 directs GSA to 
consolidate at least two other Federal agencies into its 
Headquarters Building to achieve at least a 60 percent 
utilization or vacate the building and sell it.
---------------------------------------------------------------------------
    \12\GSA, U.S. General Services Administration Headquarters 
Building, (last updated Apr. 18, 2022), available at https://
www.gsa.gov/real-estate/gsa-properties/visiting-public-buildings/gsa-
headquarters-building.
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                                HEARINGS

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
118th Congress, the following hearing was used to develop or 
consider H.R. 6278:
    On July 13, 2023, the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management of the Committee on 
Transportation and Infrastructure held a hearing entitled, 
``When the Lights Are On but No One's Home: An Examination of 
Federal Office Space Utilization.'' The hearing discussed 
Federal real estate, including office space utilization. The 
Subcommittee received testimony from Ms. Nina Albert, 
Commissioner, Public Buildings Service, GSA; and Mr. David 
Marroni, Acting Director, Physical Infrastructure, GAO.

                 LEGISLATIVE HISTORY AND CONSIDERATION

    H.R. 6278 was introduced in the United States House of 
Representatives on November 7, 2023, by Mr. Perry of 
Pennsylvania, and referred to the Committee on Transportation 
and Infrastructure. Within the Committee on Transportation and 
Infrastructure, H.R. 6278 was referred to the Subcommittee on 
Economic Development, Public Buildings, and Emergency 
Management. The Subcommittee on Economic Development, Public 
Buildings, and Emergency Management was discharged from further 
consideration of H.R. 6278 on November 15, 2023.
    The Committee considered H.R. 6278 on November 15, 2023, 
and pursuant to Committee Rule 6(f) further proceedings on the 
requested recorded vote on final passage were postponed. On 
December 6, 2023, the Committee resumed consideration of final 
passage and ordered the measure to be reported to the House 
with a favorable recommendation, without amendment, by recorded 
vote of 34 yeas and 29 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    Vote: 028.
    On: Final Passage of H.R. 6278.
    Yea 34; Nay 29.

----------------------------------------------------------------------------------------------------------------
                     Member                           Vote                    Member                    Vote
----------------------------------------------------------------------------------------------------------------
Mr. Graves of MO................................            Y   Mr. Larsen of WA..................            N
Mr. Crawford....................................            Y   Ms. Norton........................            N
Mr. Webster of FL...............................            Y   Mrs. Napolitano...................            N
Mr. Massie......................................            Y   Mr. Cohen.........................            N
Mr. Perry.......................................            Y   Mr. Garamendi.....................            N
Mr. Babin.......................................            Y   Mr. Johnson of GA.................            N
Mr. Graves of LA................................            Y   Mr. Carson........................            N
Mr. Rouzer......................................            Y   Ms. Titus.........................            N
Mr. Bost........................................            Y   Mr. Huffman.......................            N
Mr. LaMalfa.....................................            Y   Ms. Brownley......................            N
Mr. Westerman...................................            Y   Ms. Wilson of FL..................            N
Mr. Mast........................................            Y   Mr. Payne.........................            N
Mrs. Gonzalez-Colon.............................            Y   Mr. DeSaulnier....................            N
Mr. Stauber.....................................            Y   Mr. Carbajal......................            N
Mr. Burchett....................................            Y   Mr. Stanton.......................            N
Mr. Johnson of SD...............................            Y   Mr. Allred........................            N
Mr. Van Drew....................................            Y   Ms. Davids of KS..................            N
Mr. Nehls.......................................            Y   Mr. Garcia of IL..................            N
Mr. Gooden of TX................................            Y   Mr. Pappas........................            N
Mr. Mann........................................            Y   Mr. Moulton.......................            N
Mr. Owens.......................................            Y   Mr. Auchincloss...................            N
Mr. Yakym.......................................            Y   Ms. Strickland....................            N
Mrs. Chavez-DeRemer.............................            Y   Mr. Carter of LA..................            N
Mr. Edwards.....................................            Y   Mr. Ryan..........................            N
Mr. Kean of NJ..................................            Y   Mrs. Peltola......................            N
Mr. D'Esposito..................................            Y   Mr. Menendez......................            N
Mr. Burlison....................................            Y   Ms. Hoyle of OR...................            N
Mr. James.......................................            Y   Mrs. Sykes........................            N
Mr. Van Orden...................................            Y   Ms. Scholten......................            N
Mr. Williams of NY..............................  ............  Mrs. Foushee......................  ............
Mr. Molinaro....................................            Y
Mr. Collins.....................................            Y
Mr. Ezell.......................................            Y
Mr. Duarte......................................            Y
Mr. Bean of FL..................................            Y
----------------------------------------------------------------------------------------------------------------

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 6278 from the 
Director of the Congressional Budget Office:




    H.R. 6278 would direct the General Services Administration 
(GSA) to consolidate a minimum of two federal agencies into the 
GSA headquarters building. Under the bill, if GSA does not 
complete that consolidation within four years, GSA would have 
to move its personnel into another federal building and sell 
the current GSA headquarters building.
    Background: Beginning in March 2020, many agencies 
including GSA shifted to a maximum telework policy. In 2023, 
the Government Accountability Office reported that the average 
weekly use of GSA's headquarters building was around 9 percent. 
However, in April 2023, the Office of Management and Budget 
(OMB) directed federal agencies to update their operational 
polices, with the expectation that those plans will increase 
meaningful in-person work at federal offices while maintaining 
certain flexible policies related to remote work.
    In 2020, GSA began piloting new methods to collect 
occupancy data in federal buildings. In 2022, about three-
quarters of federal occupants of buildings managed by GSA 
reported that they were tracking such data. Using that 
occupancy data, GSA reports it has been able to consolidate 
some offices in the District of Columbia, and CBO expects that 
consolidation reduced costs for annual rent.
    Estimated Federal Cost: Consistent with the direction from 
OMB, CBO expects that building usage rates will rise going 
forward as agencies increase in-person work requirements and 
that GSA will continue to consolidate office space to the 
extent that usage rates of federal buildings remain low. 
Additionally, CBO expects that GSA will comply with the bill's 
requirement to consolidate other federal agencies into its 
headquarters building.
    On that basis, CBO estimates that implementing H.R. 6278 
would cost less than $500,000 over the 2024-2029 period, 
primarily for administrative activities associated with the 
bill's reporting requirements. That spending would be subject 
to the availability of appropriated funds.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                    PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to direct 
the Administrator of General Services to identify two Federal 
agencies to consolidate into the GSA Headquarters Buildings or 
sell the building.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 6278 establishes or reauthorizes a program of the 
Federal government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 6278 does not 
preempt any state, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the definition of Section 
5(b) of the appendix to Title 5, United States Code, are 
created by this legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section provides that the Act may be cited as the 
``Maximizing Office Value and Efficiency Act of 2023'' or the 
``MOVE Act of 2023''.

Section 2. Public building consolidation and sale

    This section requires GSA, in coordination with the 
Director of the Office of Management and Budget (OMB), to 
produce a plan one year after enactment that identifies at 
least two Federal agencies to consolidate into the GSA 
Headquarters Building to produce a building utilization of not 
less than 60 percent and to commence such plan no later than 
one year after submission of the plan.
    The section directs GSA to move out of the GSA Headquarters 
Building no later than three years after the submission date of 
the plan if GSA fails to identify Federal agencies to 
consolidate into the building and further directs GSA to sell 
the building.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported by the Committee, H.R. 6278 makes no changes in 
existing law.

                                  [all]