06-ASM-009

**AUTOMATED ADVANCED ACQUISITION PROGRAM (AAAP)**

**General Services Administration, Public Buildings Service National
Capital Region**

**AWARD WINNER**

The purpose of developing the **Automated Advanced Acquisition Program
(AAAP)** was to reduce the costs relating to the acquisition of real
property lease assets, improve supply and pricing of space offered for
lease to the Government, and improve customer satisfaction by delivering
space faster to its customer agencies.

In addition to the obvious benefits, the AAAP incorporates cutting-edge
GIS technology, which reduces offer submission and evaluation time from
weeks to seconds for the AAAP. Outside of the Government, the AAAP helps
businesses interact efficiently and effectively with the Federal
government, provides one-stop access to information, and enables
internet web-based E-commerce. In expanding Electronic Government, the
AAAP has advanced the goals of GSA and the President's Management Agenda
by establishing itself as the first E-commerce leasing application in
the Federal government.

By way of background, in 1991, the paper-based Advanced Acquisition
Program (AAP) was created for the purpose of consolidating and
streamlining the leasing process for a large volume of small leases, and
for procuring space faster. The AAP process treats real estate as a
commodity by capturing supply in varying lease terms and locations in a
standardized fashion. In 2001, GSA commissioned AEW Capital Management,
L.P., to perform a study to analyze the NCR Leasehold Portfolio. AEW
determined that GSA was not requesting new offers/updates to its AAP
procurements often enough, given the volatility of the real estate
markets. The problem was either that the lessors would not honor their
space bids (because market rates increased significantly) or that the
GSA would pay too much for space (because market rates decreased
significantly). The Automated AAP solved this problem by using
technology to increase the frequency of offer submissions, which led to
a better supply and "real-time" pricing that reflected current market
rates.

In addition, the AAAP capitalizes on the efficiencies of technology to
enable GSA to effectively evaluate this higher volume of offers. Such
technology utilizes Geographic Information System (GIS) technology to
automatically evaluate and rank offers that meet the Government's
location and space requirements. In addition, the AAAP employs
electronic signature technology, in the form of a five-digit self-select
personal identification number (PIN), to enable building owners to
update existing online offers or submit new ones. Without the electronic
signature and the automatic evaluation process, GSA would spend weeks
reviewing the terms and conditions of paper lease offers that it
received to make sure that they were consistent with the SFO. With the
electronic signature and GIS technologies inherent in the AAAP, GSA can
evaluate, rank, and select offers in a matter of seconds.

These technological efficiencies translate into a more efficient lease
process, less costly acquisition of real property lease assets
(established as a performance measure by Executive Order 13327) and
improved customer satisfaction by delivering space faster to its
customer agencies. By developing and implementing the AAAP, the Federal
Government has taken a giant leap forward in the E-commerce arena and is
beginning to revolutionize the commercial real estate industry's
approach to real property lease transactions.

**Contact:**

Arthur M. Turowski, Director, Leasing Policy and Performance Division
(WPQ)

U.S. General Services Administration, Public Buildings Service, National
Capital Region

art.turowski@gsa.gov