[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] THE FBI HEADQUARTERS CONSOLIDATION ======================================================================= (113-5) HEARING BEFORE THE SUBCOMMITTEE ON ECONOMIC DEVELOPMENT, PUBLIC BUILDINGS, AND EMERGENCY MANAGEMENT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ MARCH 13, 2013 __________ Printed for the use of the Committee on Transportation and Infrastructure Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation U.S. GOVERNMENT PRINTING OFFICE 79-895 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska NICK J. RAHALL, II, West Virginia THOMAS E. PETRI, Wisconsin PETER A. DeFAZIO, Oregon HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, Jr., Tennessee, Columbia Vice Chair JERROLD NADLER, New York JOHN L. MICA, Florida CORRINE BROWN, Florida FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland SAM GRAVES, Missouri RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts CANDICE S. MILLER, Michigan TIMOTHY H. BISHOP, New York DUNCAN HUNTER, California MICHAEL H. MICHAUD, Maine ERIC A. ``RICK'' CRAWFORD, Arkansas GRACE F. NAPOLITANO, California LOU BARLETTA, Pennsylvania DANIEL LIPINSKI, Illinois BLAKE FARENTHOLD, Texas TIMOTHY J. WALZ, Minnesota LARRY BUCSHON, Indiana STEVE COHEN, Tennessee BOB GIBBS, Ohio ALBIO SIRES, New Jersey PATRICK MEEHAN, Pennsylvania DONNA F. EDWARDS, Maryland RICHARD L. HANNA, New York JOHN GARAMENDI, California DANIEL WEBSTER, Florida ANDRE CARSON, Indiana STEVE SOUTHERLAND, II, Florida JANICE HAHN, California JEFF DENHAM, California RICHARD M. NOLAN, Minnesota REID J. RIBBLE, Wisconsin ANN KIRKPATRICK, Arizona THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York TOM RICE, South Carolina ELIZABETH H. ESTY, Connecticut MARKWAYNE MULLIN, Oklahoma LOIS FRANKEL, Florida ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida MARK MEADOWS, North Carolina SCOTT PERRY, Pennsylvania RODNEY DAVIS, Illinois VACANCY ------ 7 Subcommittee on Economic Development, Public Buildings, and Emergency Management LOU BARLETTA, Pennsylvania, Chairman THOMAS E. PETRI, Wisconsin ELEANOR HOLMES NORTON, District of JOHN L. MICA, Florida Columbia ERIC A. ``RICK'' CRAWFORD, Arkansas MICHAEL H. MICHAUD, Maine BLAKE FARENTHOLD, Texas, Vice Chair DONNA F. EDWARDS, Maryland MARKWAYNE MULLIN, Oklahoma RICHARD M. NOLAN, Minnesota MARK MEADOWS, North Carolina ANN KIRKPATRICK, Arizona SCOTT PERRY, Pennsylvania DINA TITUS, Nevada VACANCY TIMOTHY J. WALZ, Minnesota BILL SHUSTER, Pennsylvania (Ex NICK J. RAHALL, II, West Virginia Officio) (Ex Officio) CONTENTS Page Summary of Subject Matter........................................ iv TESTIMONY Panel 1 Hon. Steny H. Hoyer, a Representative in Congress from the State of Maryland.................................................... 4 Hon. Frank R. Wolf, a Representative in Congress from the State of Virginia.................................................... 4 Hon. James P. Moran, a Representative in Congress from the State of Virginia.................................................... 4 Hon. Donna F. Edwards, a Representative in Congress from the State of Maryland.............................................. 4 Hon. Gerald E. Connolly, a Representative in Congress from the State of Virginia.............................................. 4 Panel 2 Dorothy Robyn, Commissioner, Public Buildings Service, U.S. General Services Administration................................ 12 Kevin L. Perkins, Associate Deputy Director, Federal Bureau of Investigation.................................................. 12 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Hon. Chris Van Hollen, of Maryland............................... 36 Hon. Robert J. Wittman, of Virginia.............................. 37 PREPARED STATEMENTS AND ANSWERS TO QUESTIONS FOR THE RECORD SUBMITTED BY WITNESSES Hon. Steny H. Hoyer.............................................. 38 Hon. Frank R. Wolf............................................... 40 Hon. James P. Moran.............................................. 42 Hon. Donna F. Edwards............................................ 44 Hon. Gerald E. Connolly.......................................... 47 Dorothy Robyn: Prepared statement........................................... 50 Answers to questions from the following Representatives: Hon. Lou Barletta, of Pennsylvania........................... 53 Hon. Donna F. Edwards, of Maryland........................... 55 Kevin L. Perkins:/ Prepared statement........................................... 58 Answers to questions from the following Representatives: Hon. Lou Barletta, of Pennsylvania........................... 62 Hon. Donna F. Edwards, of Maryland........................... 66 SUBMISSIONS FOR THE RECORD Hon. Donna F. Edwards, a Representative in Congress from the State of Maryland, submission of the following items for the record: U.S. General Services Administration, ``Report of Building Project Survey for the Federal Bureau of Investigation, Headquarters Consolidation, Washington, DC, Metropolitan Region,'' (2011)........................................... 69 Brookings Institution Center on Urban and Metropolitan Policy, ``A Region Divided: The State of Growth in Greater Washington, DC,'' (1999)................................... 76 [GRAPHIC] [TIFF OMITTED] 79895.001 [GRAPHIC] [TIFF OMITTED] 79895.002 [GRAPHIC] [TIFF OMITTED] 79895.003 [GRAPHIC] [TIFF OMITTED] 79895.004 [GRAPHIC] [TIFF OMITTED] 79895.005 [GRAPHIC] [TIFF OMITTED] 79895.006 THE FBI HEADQUARTERS CONSOLIDATION ---------- WEDNESDAY, MARCH 13, 2013 House of Representatives, Subcommittee on Economic Development, Public Buildings, and Emergency Management, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to notice, at 10:10 a.m. in Room 2167, Rayburn House Office Building, Hon. Lou Barletta (Chairman of the subcommittee) presiding. Mr. Barletta. The committee will come to order. Welcome to our first subcommittee hearing. And thankfully it was not rained out today. I would like to thank Chairman Shuster for the opportunity to chair this subcommittee. I also look forward to working with Ranking Member Norton and continuing this subcommittee's bipartisan tradition. Let me also thank our distinguished colleagues from the House for testifying today. Your presence speaks volumes about your concern for the FBI and your communities. And finally, let me welcome Dr. Robyn from GSA and Mr. Perkins from the FBI. I chose the FBI headquarters for our first hearing, because it is one of the most significant projects we may consider this year. Several studies have documented the functional, operational, and security problems with the Hoover Building on Pennsylvania Avenue. The FBI has a vital mission. It has made a compelling case for relocating its headquarters function. However, a new facility would cost over $1 billion, and financing it in today's budget climate will be extremely challenging. Direct appropriations are doubtful, and OMB scoring rules typically preclude leases that result in Federal ownership. In fact, I have been told OMB has not approved a long-term ground lease with a Federal lease-back, as the FBI is proposing, since the scoring rules changed in the early 1990s. Yet, if we are successful, this has the potential for becoming a model for public-private partnerships in the future. When it comes to this proposal, the committee has two general goals: the project should meet the security and operational requirements of the FBI, and it needs to be a good deal for the taxpayers. Achieving these goals raises a host of questions that need to be addressed. For example, if the FBI must leave Pennsylvania Avenue, is a consolidated campus the best alternative? How can Congress limit the financial risks to the taxpayer by such a large and complex project? How can the committee ensure a fair and competitive site selection process? Can a consolidated facility be constructed or purchased for a reasonable cost? What is the value of the current site on Pennsylvania Avenue, and what should be done with it? Is GSA capable of managing such a complex project? These are some of the important questions we hope to explore during today's hearing so we can ensure the FBI's requirements are met and the interests of the taxpayer are protected. I look forward to our witnesses' testimony. I now call on the ranking member of the subcommittee, Ms. Norton, for a brief opening statement. Ms. Norton. Why, thank you very much, Mr. Chairman. And I congratulate you on your first hearing. I look forward to working with you. I note that both you and Chairman Shuster have started this committee and this subcommittee off to a very fast and a very good start, taking up important issues from the get-go. And I appreciate the start you have made. I am pleased, especially, to welcome all of today's witnesses, and especially my colleagues from across the region. But I think it is important to clarify what is before us today. What is before us today is simply a hearing on the GSA's Request for Information. That is all that the GSA has asked for, all it has solicited, information only. Now, an RFI, as we call it, can lead to an actual request for proposals. In this case, to consolidate the FBI into a new headquarters. And there is agreement by the FBI, by the GSA, and by the GAO, that a new headquarters is necessary. The Pennsylvania Avenue headquarters has been falling apart now for many years. And it does not allow even key personnel to be housed in its headquarters building. As important as the FBI is as an agency, constructing a new or otherwise obtaining a new FBI is really no different from any other Federal construction. The GSA and the GSA alone must conduct a competition. And the GSA must make the decision in the best interest of the taxpayer. And I can say in more than 20 years on this subcommittee, Mr. Chairman, I have never seen any political decisions made by the GSA, and I am sure they will keep that very strong record up. Everybody here hopes that their site will be selected, including the site from the District of Columbia. And everyone here is, of course, doing the right thing to market their sites. Sites are marketed not only by developers, they are also marketed by Members of Congress. I regard my role, however, as ranking member, to ensure that there is fair competition, so that the taxpayer gets top value. The staff memo raises important questions. And the responses from the GSA today are going to be very important to the subcommittee in evaluating this process. I appreciate the clarification in the staff memo, working with my friends on the other side, because there is a--the Senate resolution--do we have that? Do we have that? The Senate resolution--and isn't it interesting, when I say there should be no political interference? The Senate resolution has not been adopted by the GSA, and has led some members of the press to believe that the site could be spread throughout the region. It is clear that the RFI is in the GSA--is the GSA resolution. And it says the location of the new FBI headquarters must be no more than 2 miles from a Metrorail station, not 2.5 miles from the Capital Beltway. And the resolution is drawn that way to maximize competition and because of the longstanding policy of this committee, especially in this congested region, that we must facilitate the use of Metrorail and mass transportation. We know that the 20 locations of the FBI has made it impossible for the agency to conduct its business as a security agency should be. We are looking for lower space allocations. We believe that the GSA could consolidate in as little as 2 million square feet. Its appropriation, if it were not leasing space as it is now across the region, would be cut by nearly $45 million. The GSA is compelled by the policy of the administration and of this subcommittee to use the new space utilization, which reduces substantially the amount of space for each employee. As for the space on Pennsylvania Avenue, the headquarters on Pennsylvania Avenue, it is the ugliest building in town. Good riddance. The focus of the first panel will be, of course, on their preferred sites. It is the second panel that is critical to our work, especially the use that the RFI proposes to make of Section 412 authority that allows it a range of options to engage in transactions, and does not require upfront spending by the Federal Government. I appreciate that Chairman Barletta has focused also on the OMB's scoring rules, which do not align with CBO's rules. And those scoring rules have cost the Federal Government billions of dollars over time. And I believe that Congress may have to intervene if those rules come into play again. The project presents many challenges, but it also presents many opportunities, and very specifically the opportunity on the part of GSA to engage in a normal real estate transaction, instead of treating real estate as a commodity, losing money for the taxpayer. Thank you very much, Mr. Chairman. Mr. Barletta. Thank you, Ranking Member Norton. At this time I would like to recognize the chairman of the full committee, Mr. Shuster. Mr. Shuster. Thank you, Mr. Barletta, and thanks for holding this hearing today. This is an important hearing. Obviously, we are joined by four distinguished colleagues of ours, and two from Virginia, two from Maryland. So it is obviously important to the region, as well as the ranking member, who, of course, represents the District of Columbia. But I welcome you here to the committee today. And again, I appreciate you holding this hearing, Mr. Chairman. The FBI is one of the most important institutions in this Nation. It keeps us safe. We need to make sure that we find them a location that is best suited for them, and making sure that it is efficient, it is modern, and it is secure. So, as we move through this process, I look forward to getting input and hearing from everybody. And again, thank all of you for being here. And thank you, Mr. Chairman, for holding this hearing. Mr. Barletta. Thank you, Mr. Chairman. I now call on the ranking member of the full committee, Mr. Rahall. Mr. Rahall. Thank you, Mr. Chairman. I have no opening comments. I want to hear from my colleagues first. Mr. Barletta. Thank you. We will have two panels today. The first is a Members panel that includes the Honorable Steny Hoyer, the Honorable Frank Wolf, the Honorable Jim Moran, the Honorable Donna Edwards, and the Honorable Gerald E. Connolly. I ask unanimous consent that our witnesses' full statements be included in the record. [No response.] Mr. Barletta. Without objection, so ordered. Since your written testimony has been made a part of the record, the subcommittee would request that you limit your oral testimony to 5 minutes. Representative Hoyer, you may proceed. TESTIMONY OF HON. STENY H. HOYER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MARYLAND; HON. FRANK R. WOLF, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA; HON. JAMES P. MORAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA; HON. DONNA F. EDWARDS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MARYLAND; AND HON. GERALD E. CONNOLLY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA Mr. Hoyer. Thank you very much, Mr. Barletta, and I want to thank Chairman Shuster, Ranking Member Norton, and Ranking Member Rahall for their attendance. I thank the committee for holding this hearing to examine the possibility of a new consolidated FBI headquarters, and for the opportunity to testify on the merits of relocating to Prince George's County, Maryland, where I grew up and where I now represent, and have for the last 32 years. The J. Edgar Hoover Building is in disrepair and does not comply with today's high-security standards. I think everybody agrees on that. The agency suffers from space constraints and security challenges. To restore the current building is neither cost effective nor feasible. In addition, roughly half the headquarters staff are in leased space around the capital region because there is insufficient space within the J. Edgar Hoover Building. Consolidation will save money and enhance the FBI's ability to do its work. The dispersion of staff negatively impacts the FBI's ability to perform its mission. Consolidating and relocating the headquarters in a timely manner will help ensure that the FBI can carry out that mission and save our taxpayers at least $44 million annually in the process. Any new location for a possible new consolidated FBI headquarters must meet several requirements. First, it must have a minimum of 45 to 50 acres. Secondly, it must be located within the national capital region. Thirdly, it must have access to public transportation, such as Metrorail. And it must have space to house approximately 11,000 personnel. With a variety of potential sites in close proximity to Washington with sufficient available acreage and close to mass transit, I believe that Prince George's County is an ideal location for the new headquarters. We will try to make that case over the next months, and we will look forward to working with our colleagues towards that end. Prince George's County, Mr. Chairman, as you may know, has ample undeveloped land near the Metro. In fact, more so than any other jurisdiction: the MARC commuter rail, the Capital Beltway, a variety of Metro and county transit bus lines and regional bike trails. The sites can provide a secure and convenient campus setting. Twenty-five percent of the region's Federal workforce resides in Prince George's County, and our State is already home to a plurality of the FBI's employees. According to a Maryland State study released in September, 43 percent of FBI headquarters employees live in Maryland, 17 percent live in Washington, DC, and 33 percent we understand live in Virginia. FBI personnel and their families, I suggest, could benefit from a lower daily transportation expense, Prince George's County's vibrant neighborhoods, and an easier commute. In addition, Maryland has recently seen unprecedented growth in the field of cybersecurity, which would provide the FBI with greater access to experts in the field, as well as a highly skilled workforce. Our State is home to--and I think this is very important: the U.S. Cyber Command at Fort Meade; the National Security Agency; the Defense Information Systems Agency; the National Cybersecurity Center of Excellence headquarters at the National Institute of Standards and Technology; the Department of Defense's Cyber Crime Center, known as DC3; and the Intelligence Advanced Research Projects Activity, IARPA. Our State's institutions of higher education, including the University of Maryland at College Park, just a few miles from the projected site, and Bowie State University, also just a few miles from the projected site, both located in Prince George's County, are training the next generation of leaders in cybersecurity. Numerous companies and contractors in the field of cybersecurity are located in Prince George's County as well, Mr. Chairman, not far from others operating in Montgomery and Anne Arundel County. I think that Prince George's County will make its case with several potential secure and convenient locations, and a significant portion of the region's Federal workforce is the right choice for the new FBI headquarters. I will continue to work with you, Mr. Chairman, with your ranking member, Ms. Norton, and with Mr. Shuster and Mr. Rahall as we go forward assessing the merits of each of these sites. Local officials in Maryland and the Governor advocate for any proposed consolidated FBI headquarters to be relocated in Prince George's County. Our State is united in that effort, including, as you just recently heard, the leadership of Montgomery County, Mr. Leggett. So, I thank you for this opportunity to appear, look forward to working with you. We believe that the Prince George's County proposal will prove to be, from the taxpayers' standpoint, which is obviously our principal concern, and from the FBI's standpoint and national security, to be the best site. And we look forward to working with you towards that end. I thank you, thank the chair and the committee for its attention. Mr. Barletta. Thank you for your testimony, Representative Hoyer. Representative Wolf, you may proceed. Mr. Wolf. Sure. Thank you, Mr. Chairman. Thank you and also Ms. Norton, too. I will try to summarize quickly. Obviously, I am here to support the Bureau moving its headquarters to the State of Virginia. The entire Virginia delegation, the Governor, everyone, is in complete agreement. It is a logical choice. A number of FBI agents live in Virginia. The Washington field office resident agency is in Virginia. The FBI Academy is in Virginia at Quantico, the back- and-forth and back-and-forth between the two. The FBI new record facility is slated to be built in Virginia. The recordkeeping fingerprint is out in West Virginia, which is relatively close. The CIA is in Virginia. The CIA is in Langley. The CIA is in Herndon. The CIA is in Reston. The CIA is on Route 28. The NRO is in Virginia. And I could go on. But having the proximity--FBI, NRO, CIA, all these agencies together, along with the West Virginia and the new recordskeeping in Winchester, it makes a big difference. There are a number of potential sites in Virginia that meet the needs of the Bureau. I am not coming in for any one particular site, whether they are in Fairfax County, Prince William County, or in Loudoun County. As the process gets underway there, I think it is important that the Government get the best deal. And I would encourage or end by this last comment. If I say anything that sticks, hopefully this will be. I would encourage the subcommittee not to limit its search to sites no further than 2.5 miles from the Capital Beltway as the Senate prospectus requires. That would arbitrarily prevent sites in Loudoun and Prince William. We expect the procurement process to be open and fair. So open and fair, and remove any strictures that sort of, when you write them down, you in essence are not saying the name but you are forcing it to go. It ought to be open and fair. And with that, I thank you for the hearing very much. Mr. Barletta. Thank you for your testimony, Representative Wolf. Now, Representative Moran, you may proceed. Mr. Moran. Thank you, Chairman Barletta and Shuster and Ranking Members Norton and Rahall. We appreciate the opportunity to get our views before this subcommittee as a region. Now, I, along with a united Virginia congressional delegation, do believe that northern Virginia would make the ideal location for the new FBI headquarters. And the reasons are the following, and they do mirror exactly what Mr. Wolf had to say, although we didn't confer in advance. But I think you will find the same conclusions that we came to. Northern Virginia is home to a majority of FBI personnel in the region. FBI people live in northern Virginia, for the most part. The FBI Academy and the FBI Laboratory, the premier crime lab in the U.S., employ over 500 scientific experts and special agents. They are both located in Quantico, Virginia. The northern Virginia resident agency, field office for several hundred agents, is located in Prince William County. And Winchester, Virginia, will be the future home of the FBI's central records complex. A headquarters location in northern Virginia would provide substantial logistical benefits and collaborative opportunities. In addition, the FBI occupies a number of discreet facilities elsewhere in northern Virginia, and the region is also home to the National Counterterrorism Center and the headquarters of the Central Intelligence Agency. An FBI headquarters location in Virginia would increase opportunities for cross-agency coordination and promote increased operational efficiency, saving time and transportation costs. Northern Virginia offers geographically advantageous locations roughly equidistant from Quantico and Washington, DC, offering easy access to other Federal agencies, Congress, and the aforementioned major FBI facilities. Our region also has some of the best schools in the country and is consistently ranked one of the best places to live, work, and raise a family. Taken together, these attributes would help to minimize the adverse transition and transportation effects on employees assigned to the new headquarters. Now, my top priority, of course--our top priority--is to support efforts to locate the FBI headquarters in Virginia. But I would like to mention a couple of facilities in particular. There is a Center for Innovative Technology property, their substantial amount of land is located right at the--at Route 28 and the Dulles Toll Road, and it will have access to the Silver Line Metro station. Another property that I believe would be ideal for this facility is a GSA warehouse located in Springfield, Virginia. It is situated on approximately 60 acres. It could easily accommodate over 3.5 million square feet of highly secure office space, and would allow for the productive use of underused Government-owned real estate. It is right at a Metro station. It would provide ample space for the FBI to accommodate potential future growth. Given recent local challenges that were created by BRAC relocations, I think this subcommittee should consider sites that would require the least amount of off-site infrastructure. It is expensive, it is time-consuming, and I don't think that it is appropriate to have to invest in substantial infrastructure to accommodate a new FBI building. In this regard, though, the Springfield location is unique, because we have substantial improvements to Interstate 395, on which it is located. We have the express lane project on the beltway, and the completion of the Fairfax County Parkway to Fort Belvoir, all going along this site. So more than $1 billion has been invested in the road network in and around this particular GSA warehouse site. It is also located, as I say, next to the Franconia-Springfield Metro station, next to Amtrak, and next to VRE rail lines, and it is served by a very extensive bus system. So the presence of a high-quality road network and mass transit options would promote efficient traffic flow and minimize the impact on the local community. Now, as GSA proceeds with its selection process, I know that this competition will be conducted in a completely open and fair manner. Unlike the Senate-passed prospectus, I would hope that we would not prevent consideration of potential sites in the Dulles area. I urge the subcommittee to oppose unnecessary restrictions on the location of the new FBI headquarters. The Senate was more restrictive; I don't think there is a need for the House to do so. The decision of where to locate this facility should be based solely on what is best for the FBI's ability to fulfill its vital law enforcement and national security missions through a transparent process, free of political considerations. I am fully confident that sites in Virginia will stand out among all the options, and I thank you again for inviting us to testify and for your continued efforts to ensure the best possible location is chosen as the new headquarters for the FBI. Thank you, Mr. Chairman. Mr. Barletta. Thank you for your testimony, Representative Moran. Representative Edwards, you may proceed. Ms. Edwards. Thank you, Chairman Barletta and Ranking Member Norton. I really appreciate the ability to testify today. And I look forward to our work together, as a subcommittee, to make sure that we are reporting a resolution that adequately reflects the needs of the FBI, but also is respective of the needs of taxpayers. The future location of the FBI headquarters is vital to the men and women of the Bureau and to their mission. But it is also vital to the people of my congressional district, specifically in Prince George's County, where I live, which Congressman Hoyer and I represent here in this chamber. We are here today because it is critical that the FBI consolidate its operations to optimize the agency's ability to meet its vital mission and make the best use of taxpayer resources. It has been my experience on this committee that when we have considered--and Ranking Member Norton understands this-- when we have considered these matters in front of our committee, our goal is about fairness of process, to make sure that there is the most open competition possible that then maximizes the taxpayers' dollars. It has been almost 40 years since the FBI actually moved to the Hoover Building, and we know it has outgrown it. We know that it can no longer provide the security, infrastructure needs, and space required of the world's premier law enforcement agencies. In addition to its responsibilities here at home today, the FBI is a key leader, globally, in meeting our law enforcement needs. Here in the national capital region, the FBI occupies more than 3 million square feet of space over 21 locations that results in $168 million of leasing costs alone. It is pretty staggering. But surprisingly, the Hoover Building currently only houses 52 percent of the FBI's headquarters staff. This dispersed office structure is impeding the Bureau's ability to meet its core mission, due to challenges in managing its headquarters, divisions, and offices effectively, and while also collaborating and sharing information across functions. It--to comply with 9/11 security--post-9/11 security requirements, the FBI has looked to consolidate facilities into one headquarters. In response to a 2011 GAO study, the FBI conducted a security assessment that documented threats and analyzed building security requirements consistent with the Interagency Security Committee standards. And so it is a critical component of our Nation's security apparatus that the agency has to comply with these enhanced standards. So, I want to talk for a minute about Prince George's County. Prince George's County offers an appropriate, I think, opportunity for development and for the FBI to relocate its headquarters. I think it offers a competitive combination, as Mr. Hoyer has indicated, that meets the requirements of the FBI, also meets the requirements of the resolution that came out of the Senate, and has taxpayer value with the finest location and access to world-class facilities. Joint Base Andrews, the President's airport, is in Camp Springs in Prince George's County. That would provide the FBI with a secure facility from which to depart anywhere in the world to meet its global responsibilities for our domestic law enforcement needs. Fort Meade is home to the National Security Agency, the Nation's largest leader in cybersecurity and its intelligence-gathering apparatus. It is another secure facility located in nearby Anne Arundel County, a part of which I also have the honor of representing. As Mr. Hoyer has indicated, the University of Maryland, Bowie State University, also provides nationally ranked disciplines in criminal justice, computer forensics, biological sciences, language, homeland, cyber, and national security. It is home to the Department of Homeland Security's Center of Excellence and terrorism studies, and a national consortium of leading terrorism studies programs across the country. Prince George's County is also home, as we have heard many times in this committee, to 15 Metro stops, which is the most in this region, offering all kinds of accessibility throughout the county, and provides easy access to the White House, downtown Washington, DC, the Capital Beltway, the Department of Homeland Security's new campus at St. Elizabeths, and our region's airports, while also having the lowest real estate prices in--around nearby Metro facilities throughout our region. In addition, over 67,000 Federal employees reside in Prince George's County and, as you have heard, 43 percent of the workforce at the FBI. Prince George's County is the right fit for the FBI, and it will do right by the FBI. And if a consolidated headquarters becomes a reality anywhere within the parameters already set by the Senate resolution, the District of Columbia also stands to gain. The Hoover Building on Pennsylvania Avenue would free up a block on the most important and prominent street in America, allowing the District of Columbia to have a tax-generating tenant and a building that adds to the aesthetic value of Pennsylvania Avenue. And that would complement the soon-to-be developed Old Post Office site, which Chairman Norton worked very much on in the last Congress, and was championed by this committee, as well. Again, Chairman Barletta and Ranking Member Norton, thanks for allowing me to testify today. It is not our job here to figure out who gets the competition, but it is our job to make certain that it is a fair, it is an open and competitive process, and I have every confidence that Prince George's County will meet that competition. Thank you. Mr. Barletta. Thank you for your testimony, Representative Edwards. And now, Representative Connolly, you may proceed. Mr. Connolly. Thank you, Mr. Chairman, Ranking Member Norton, Mr. Shuster. And I know Nick Rahall just stepped out. I have a prepared statement; I am not going to read it to you. It repeats an awful lot of what has already been said. So let me just summarize. I want to echo what my colleague, Donna Edwards, just said. We look forward to a fair, open, and transparent process, free of political influence. And we believe that if there is such a process, frankly, Virginia is the likely new site of an FBI headquarters for several reasons, one of which is the FBI is already there. The FBI is in Quantico with a very large footprint. The FBI new recordskeeping complex is going to be in Winchester, Virginia. We already have the northern Virginia residency, of course, in Prince William County in Virginia. Virginia offers--northern Virginia offers one of the most skilled workforces in the United States, one of the highest performing school systems in the United States. It is a place from which we can draw skilled labor. And we have George Mason University, now the largest public university in a stellar public university State, the State of Virginia. We have the third largest community college, Northern Virginia Community College, in the United States, in Virginia, all of which provide criminal justice courses and forensics training in large numbers for law enforcement. The nexus for the FBI is logically in Virginia. And I believe that with a fair and open and transparent process, Virginia is going to be more than competitive in sites that are served by transit, particularly the GSA site in Springfield, but also the CIT site proximate to Dulles Airport that will be served by the silver line that is under construction right now. So, we are very proud of the sites that have been proffered. We look forward to a fair, open, transparent process. We hope that this committee, in drawing its criteria, will, frankly, be more flexible and more open than maybe the Senate was in drawing its. And as I said, we are confident that, if that is the process, we are going to be more than competitive. Thank you, Mr. Chairman, and thank you so much for giving us this opportunity this morning. Mr. Barletta. Thank you. I would like to thank each of you for your testimony here this morning. I know how busy you all are. But we all know how important this project is. It is critical to the FBI that their new location will be somewhere where it will be functional. And obviously, security is a major role. But the questions we have today that we want answered is why, where, and how. And your testimony today informing our subcommittee is very important to all of us. So again, I want to thank each of you for your time. We will excuse the panel, and---- Mr. Rahall. Mr. Chairman? Since I didn't make an opening comment, may I make a comment to the panel---- Mr. Barletta. Yes, you may. Mr. Rahall [continuing]. Before they depart? Let me just cite a couple well-known facts, if I might, to the panel. First, the FBI in my home State of West Virginia, which Mr. Wolf has referred, already have a successful partnership. As we know, in fact, the largest division of the FBI, the criminal information service division, is located in Clarksburg. The heart of the CGIS complex is a 500,000-square-foot main office building on 980 acres of land owned by the FBI. It features a beautiful 600-seat cafeteria, 500-seat auditorium. It has an atrium for visitors and employees, and a 100,000-square-foot computer center. The campus already employs some 2,500 employees. In fact, FBI owns nearly 1,000 acres of land in Clarksburg, plenty of room for expansion. [Laughter.] Mr. Rahall. In addition, the Internet crime complaint center, collaboration between the FBI and the National White Collar Crime Center, has a facility in Fairmont, West Virginia. It has been reported, following the division's move from downtown Washington, DC, to Clarksburg, West Virginia, that FBI executives cited sharper lower employee absentee rates, improved employee retention rates, higher worker productivity and morale. The benefits of West Virginia as a home for Federal facilities are abundant. And other agencies would do well to consider the community where the FBI and other Federal employees have thrived over the past 20 years. So I would say while these titans of the beltway lock horns, let us all remember that there is a calm, safe, and serene atmosphere in ``Almost Heaven,'' where our dedicated and hard-working FBI employees can work and live. Thank you, Mr. Chairman. Mr. Shuster. Will the gentleman yield? Mr. Rahall. Yes, I yield. Ms. Norton. Mr. Chairman? Mr. Shuster. I just would like to remind everybody that the Pennsylvania State line is less than 100 miles from here, and there is wide open spaces all over south central Pennsylvania. Yield back. Mr. Hoyer. Mr. Chairman, if I could just say that I have had a discussion with the new chairman of the Appropriations Committee, and she has told me how much she admired the work of the former chairman of the Appropriations Committee. [Laughter.] Mr. Moran. Mr. Chairman, would it be inappropriate to ask the ranking member of the full committee for his estimated ETA for the Metro system to arrive in West Virginia? [Laughter.] Mr. Moran. And how we are going to pay for it? Mr. Rahall. With high-speed rail, anything is possible. [Laughter.] Mr. Connolly. Mr. Chairman, I just want to say that if it can't be in the preferred location, Virginia, we would be proud to have it in our sister State, West Virginia. Mr. Barletta. I will call on our second panel of witnesses: Dr. Dorothy Robyn, commissioner, Public Buildings Service of the General Services Administration and Dr. Kevin Perkins, associate deputy director of the Federal Bureau of Investigation. I would like to welcome our witnesses, so I ask unanimous consent that our witnesses' full statements be included in the record. [No response.] Mr. Barletta. Without objection, so ordered. Since your written testimony has been made a part of the record, the subcommittee would request that you limit your oral testimony to 5 minutes. Dr. Robyn, you may proceed. TESTIMONY OF DOROTHY ROBYN, COMMISSIONER, PUBLIC BUILDINGS SERVICE, U.S. GENERAL SERVICES ADMINISTRATION; AND KEVIN L. PERKINS, ASSOCIATE DEPUTY DIRECTOR, FEDERAL BUREAU OF INVESTIGATION Ms. Robyn. Thank you, Chairman Barletta, Ranking Member Norton, Congressman Rahall. I appreciate the opportunity to be here before you this morning. That was a hard act to follow. Under new leadership, GSA has refocused on its mission of delivering the best value in real estate acquisition and technology services to Government and the American people. With respect to the real estate mission, GSA faces three key challenges: an aging inventory of buildings; limited availability of Federal dollars with which to maintain our existing buildings and construct new ones; and, as a result of the first two challenges, a growing reliance on leased space. To address these challenges, we are working to improve agencies' utilization of space, and thereby reduce their requirement for space, particularly costly leased space. We are seeking to reduce the cost of operating our buildings. Finally, we are using the authorities Congress gave us to leverage private capital to deliver better and more efficient space to Federal agencies. The subject of today's hearing is an illustration of these very challenges and our efforts at GSA to address them. Let me briefly summarize the challenge and our proposed response to it. As you heard from the last panel, and I would concur, the J. Edgar Hoover Building is no longer suitable as a headquarters facility for the FBI. Opened in 1974, when the FBI was primarily a law enforcement agency, the building was principally designed to store vast amounts of paper documents. It was also intended to be accessible to the public, as evidenced by the large central courtyard and the second-floor veranda for parade-watching along Pennsylvania Avenue. These features, among others, now represent deficiencies. The building is highly inefficient, from the standpoint of space utilization. Of the 2.4 million gross square feet of area, only 1.3 million square feet are usable to FBI personnel. This inherently poor use of space, together with the growth of the agency since 9/11, means that the Hoover Building now accommodates only about half of the agency's headquarters staff. The rest are located, as you have heard, in some 20 leased locations around the national capital region. This dispersion of staff inhibits the kind of collaboration and communication that the FBI has sought to encourage in the aftermath of 9/11. Second, the design of the building as, in effect, a large filing cabinet discourages collaboration and communication within the building. In particular, sturdy interior walls of cement block, which line corridors wide enough to accommodate the movement of large blocks of paper files, make it hard to reconfigure the space into the kind of open, collaborative workspace that the FBI needs and that they are creating in their field offices around the country. And then, finally, the building, with its high-profile location and limited perimeter setback cannot meet and will not--cannot meet and does not meet the FBI's requirements for Level V security under the Interagency Security Committee's standards. Mindful of these deficiencies, in early December GSA issued a Request for Information from private developers interested in building a new headquarters for the FBI somewhere in the national capital region. The RFI made clear that GSA wants to consider an exchange of the Hoover Building for a new facility of up to 2.1 million square feet that would consolidate personnel from Hoover and the multiple leased locations in the national capital region. What exactly do I mean by ``exchange''? Real property exchange is a tool that Congress has given GSA with which it can dispose of properties that no longer meet the Federal need and/or with which we can leverage the equity of some of our Government's less suitable or efficient buildings to get other, more suitable and efficient ones. This could--in this case, this could involve the construction of a new facility on land that a developer owns, the construction of a new facility on land that the Government owns or acquires. Alternatively, it could involve an exchange for an existing building somewhere in the NCR. Under any of these scenarios, at the end of the process the developer would own the Hoover Building and the Federal Government would own its replacement facility. Now, I want to emphasize that our current initiative and the RFI are not limited to the exchange approach. But use of our exchange authority appears to be promising. The J. Edgar Hoover Building is functionally obsolete, and we believe the Pennsylvania Avenue site has considerable potential for higher and better use than as a headquarters of a Federal agency. We hope to unlock that hidden value and apply it to the creation of a new facility in the NCR. The deadline for responses to our RFI was March 4th. As you can imagine, the response was very enthusiastic. We got 35 responses. We are now in the process of evaluating them. Based on the information we obtained, we may issue a Request for Proposals. That would be the next step. In sum, this is an important project, one that I believe can materially improve the FBI's ability to perform its mission. We are seeking to meet this challenge using innovative authorities that Congress has given us. We will work closely with Congress as we go forward, using a transparent process that emphasize competition and minimization of risk to taxpayers. And every jurisdiction in the NCR will get fair consideration. Thank you and I look forward to answering your questions. Mr. Barletta. Thank you for your testimony, Dr. Robyn. Now, Mr. Perkins, you may proceed. Mr. Perkins. Thank you, Mr. Chairman. Chairman Barletta, Ranking Member Norton, Ranking Member Rahall, members of the subcommittee, and all the distinguished guests here today, I want to thank you for the opportunity to discuss the FBI's need for a new consolidated FBI headquarters building. I am pleased to appear before you today, and I am truly honored to be here with my colleague from the General Services Administration, Commissioner Robyn. As you know, the FBI has occupied the J. Edgar Hoover Building on Pennsylvania Avenue since its completion in 1974. Since then, and particularly since 9/11, the FBI has undergone significant changes in its structure and its management: information technology systems, interagency collaboration, and its overall mission. These changes have transformed the Bureau into a national security organization that fuses traditional law enforcement and intelligence missions, enabling us to successfully identify and combat new and emerging threats, head on. As its mission has grown, the FBI has also adapted the use of the Hoover Building to meet mission requirements, and to increase operational efficiencies. For example, we relocated our crime lab to Quantico, instituted an electronic system of record, relocated our paper records, and converted nonpersonnel and equipment-intensive spaces into office space to accommodate our growing number of employees. As a result, today's FBI has over 10,000 headquarters staff in multiple locations throughout the national capital region. In fact, the Hoover Building houses only just over half the Bureau's headquarters staff. The dispersal of employees has created significant challenges with regard to effectively managing the Bureau's headquarters divisions and offices, facilitating organizational change, and sharing information across operational and administrative functions. Now, to address these concerns, numerous assessments of the current Hoover Building and other headquarters offsite locations have been conducted over the last few years. All have concluded that consolidating the FBI headquarters operations will improve information sharing and collaboration, eliminate redundant space, and enhance security, while at the same time saving significant tax dollars. Housing critical FBI headquarters elements in a single location will reduce space needs by over 800,000 square feet, a reduction of almost 30 percent, which, in turn, results in significantly lower rent payments, especially when you compound them over time. Our August 2011 headquarters consolidation project report concludes this will result in a savings of at least $44 million annually. Working with our partners at GSA, we have proposed locating a new headquarters within the national capital region. Generally, the site must be served by mass transit, have adequate surrounding highway infrastructure, and must be in substantial conformance with local land use plans. Just as importantly, the FBI headquarters building should be housed in a facility meeting the highest standards of security, a level of protection reserved for agencies with the highest level of risk related to their mission functions, which are critical to national security and continuation of Government. We will continue to work with the GSA and with Congress in order to identify and implement a solution that meets the FBI's needs not only now, but well into the future. I want to thank you again for the opportunity to be here before you today. It truly is an honor. And I now look forward to answering any questions you may have. Thank you. Mr. Barletta. Thank you for your testimony, Mr. Perkins. I will now begin the first round of questions, which will be limited to 5 minutes for each Member. If there are any additional questions following the first round, we will have additional rounds of questions, as needed. As I said in my opening statement, this is an important, yet complicated proposal. The committee wants to be helpful and find a new home for the FBI, but I do not envision the committee writing a blank check. As a result, we are looking for reasonable limitations on the size, scope, and cost of the project in order to protect the taxpayer from overbuilding and overspending. We have many questions along these lines and limited time. So it would be most helpful if you could attempt to keep your responses as brief and to the point as possible. We have some detailed questions regarding the FBI's 2011 report. If it would be helpful, Mr. Perkins, I would invite Mr. Pat Findlay to join you at the table at your discretion, if you feel that that would be helpful. Without objection, so ordered. Mr. Findlay, would you state your name and your title? Mr. Findlay. Yes. Patrick Findlay, assistant director for facilities, FBI. Mr. Barletta. Thank you. Dr. Robyn, GSA recommended Federal construction in this 2011 project survey report. My question would be if this is GSA's current recommendation. If not, what is GSA's current recommendation? As you know, this report recommends Federal construction. In today's budget climate and fiscal climate, we know that is not possible. So if this report is not the true recommendation, what is GSA recommending? Ms. Robyn. Federal construction, Mr. Chairman, as you know, is always the least expensive approach, the best approach, in terms of cost to the taxpayer. So we always prefer that. We are pursuing that at St. Elizabeths, but you can see from the delays at St. Elizabeths the problems associated with consolidating an agency headquarters relying solely on Federal construction. So, we are looking at our exchange authority. We are not looking exclusively at that, but we want to explore that as an alternative, and a way to do this in a more accelerated way. Mr. Barletta. When will the committee receive an OMB- approved prospectus requesting the project? Ms. Robyn. Well, I would say that OMB approved the RFI to go out. So I think that should give you some comfort that the approach that we are pursuing is one OMB is comfortable with. I think it is premature to talk about sending up a prospectus. I think we are--we just got the replies from the RFI in last week. We are evaluating them. Because there are so many, it is going to take us a while. We will be happy to brief you along the way on them, but I think it is premature to talk about a prospectus. Mr. Barletta. Mr. Perkins, would you please describe the FBI's recommended strategy in its 2011 report? And can you tell me, is the FBI formally requesting the committee to authorize that strategy? Mr. Perkins. Well, not formally requesting that authorization at this point. The strategy that is put forth in the 2011 report is that of a public-private partnership that, as you correctly noted earlier, in this fiscal environment in which we are in, we believe that would serve as the method by which would require the least upfront cost for the taxpayers, have the least impact on Federal spending, and be able to leverage the private sector's ability to come up with financing and development of a project with the least cost to the taxpayer. So, overall, we believe, in the end, we would have a facility that would meet our needs and our requirements, both security and operational, as well as having the least cost to the taxpayer on the front end. Mr. Barletta. And could you please present the financial case for the FBI's proposal? And what does the FBI spend now to home the headquarters? And what would it spend under a new proposal? Mr. Perkins. Certainly. Right now we spend approximately $168 million annually in rents across 21 different facilities within the national capital region. Under this new process, and a single campus, I believe that number would go somewhere approximately $124 million to $125 million in annual rent. The annualized net present value over the term of any type of public-private partnership and lease agreement would save us at a minimum of $44 million a year over what we are paying in rent, currently. Mr. Barletta. And for each of you--Mr. Perkins, you first-- is the ultimate Government ownership of a new headquarters necessary? And is that in the best interest of the taxpayers? Mr. Perkins. Yes. Ultimately, in the proposal that we looked at and really went forward with in our review, the public-private partnership would involve the facility being build on Federal land. After a term of approximately a 30-year lease, would come back in ownership to the Federal Government, yes. Ultimately, the facility would become a Federal facility. Mr. Barletta. Dr. Robyn, same question. Ms. Robyn. I think everyone agrees that this should be a Federal facility, a federally owned facility, sooner or later. We typically resort to leased space only for very general purpose space that we can get on the regular commercial market. If the facility needs to be specialized to an agency's needs, it is better to have it be federally owned space. The FBI's proposal would eventually have it be federally owned, but not initially. Mr. Barletta. Dr. Robyn, as I see it, OMB scoring is our biggest obstacle to the FBI's proposal. Ms. Robyn. You said that, sir, not---- Mr. Barletta. We all know we don't have $2 billion in appropriations, and GSA has never been able to get OMB to approve the type of lease arrangements proposed by the FBI. My question is this. Please explain the scoring issues with this proposal. And, two, what is OMB's position? Is OMB prepared to allow this project to advance as an operating lease? Ms. Robyn. Well, I don't want to speak for OMB, but let me tell you what I think the scoring issue is. And I want to say that we certainly have not ruled out the out-lease lease-back approach that the FBI report recommended. That is an innovative authority that this committee gave us. We still hold out hope that we can identify a way to do that. So we have not ruled that out. I think, in terms of scoring, the philosophical foundation for scoring is risk. It is the concept of risk. Does--is the Federal Government bearing the risk, or does the private sector have skin in the game? That is really what it comes down to. So when something scores--and typically OMB and CBO are--look at the world in very similar ways--it is typically because they feel like the private sector isn't bearing as much risk as Government, or the scoring is--depends on the amount of risk. So, I think the issue for an out-lease lease-back approach would be can we do that in a way that the private sector has enough skin in the game, that is what it would come down to. We think we are on better footing with an exchange. We think that--I think it is--the reason I emphasize that OMB had approved the RFI is because the RFI that we put out, it did not limit it to exchange, but it did make clear that we were interested in the possibility of an exchange of the Hoover Building for a new headquarters. And that RFI passed muster with OMB. So I think we feel that we are on better footing in terms of potential scoring with an exchange. But we have certainly not ruled out other approaches. Mr. Barletta. Thank you. I will recognize Ranking Member Norton for questions. Ms. Norton. Thank you very much, Mr. Chairman, and I want to thank both of you for very helpful testimony. Dr. Robyn, the RFI is different from the Senate resolution. And I note that the staff memo, which is a memo from the staff of both sides here, is not a Democratic or Republican staff memo, has a section or question, or actually is a statement. It says that the Senate EPW resolution requires, to the extent practicable, the new location to be 2 miles from a Metrorail station and 2.5 miles from the Capital Beltway. If GSA were to follow this instruction, it could significantly limit competition of sites in all three potential jurisdictions: Virginia, DC, and Maryland. Is the delineated area in your RFI necessary for competition, for full and fair and open competition? And is it likely to be the delineated area in any forthcoming RFP or Request for Proposals? Ms. Robyn. We made clear in the RFI that the area we are interested in is the national capital region. We did not limit it any more than that. And we did not refer to---- Ms. Norton. And you recognize that the Senate resolution does limit---- Ms. Robyn. Yes. Yes, I do. We tried to make the RFI as broad as possible. We want to encourage as much creativity and interest at this stage as we can. And the RFI does not talk about being 2.5 miles from a Metro or the beltway. That is not in the RFI. I think we used those criteria for purposes at--one point for purposes of trying to estimate the value of land in various parts of the national capital region. But that--we didn't--we explicitly did not put that into the RFI. Ms. Norton. So that standard isn't even in your--and you don't anticipate it being in the RFP? Ms. Robyn. I don't know. I think we are very mindful of the proximity to transit. I think the FBI, as I think we are, I---- Ms. Norton. I don't think you have any choice about transit. Ms. Robyn. Yes. Ms. Norton. That is the policy of the United States, when it comes to construction. But this 2.5--the linking of the 2.5 miles from the beltway, to deliberately exclude most of the District of Columbia was an affront, frankly. And it didn't sound like the GSA usually does business. We, of course, wrote to the Senate and we didn't think that that could pass muster. But it is important for that to get on the record here. You talk about the national capital region. Ms. Robyn. Yes. Ms. Norton. And, of course, about distance from Metro stations. And that, of course, is fair, free, and open, and nobody gets excluded. Could I ask Mr. Perkins? Are you seeking to leave the District of Columbia? Do you object to being in the District of Columbia? Do you see any advantages to being in the District of Columbia? Mr. Perkins. Ranking Member Norton, I will start by saying that---- Ms. Norton. Is your microphone on? Mr. Perkins. Oh, yes, ma'am. It is set. I am sorry. I will start by saying that we have absolutely no objection to being within the District of Columbia, whatsoever. Our central mission here is to come up with a property, whether it is in either Maryland, Virginia, or in the District, that meets two major criteria: one, our operational mission needs; and two, providing adequate security for the facility and the workers who are coming and going from there. So there is absolutely no objection to the District. There is no objection to any of the proposals that are out there at this point. Obviously, as we have already discussed, adjacent--near highways, transportation, public access, and the like, very, very important, as we have already mentioned in the record. But no, we have no objection whatsoever to that. Ms. Norton. Thank you. Could I ask both of you? The RFI has an enormous acreage, 40 to 55 acres, for a new consolidated FBI. Bear in mind that you are talking to the committee that developed these new standards that puts everybody into smaller amounts of space. You have 40 to 45 acres. We understand that has a lot to do with security. Could this requirement be mitigated if other factors were taken into consideration so that it wouldn't take up so much land, and have you consider mitigation of that large amount of land, 40 to 55 acres? Dr. Robyn? Ms. Robyn. Yes. We have--there is a trade-off between the amount of land for a setback and alternative approaches to getting that same level of security through the building, physical ways the building is constructed. So there is a trade- off there. Again, we are trying not to prejudice the process at this point. We are saying we are open to a variety of approaches. But we recognize that is a serious issue. I have continually thrown out the idea of whether this should possibly go on a military base for exactly that reason, because you would not need to have the same setback. I don't know that there are many other people who support my thoughts there. Ms. Norton. Horrible idea. Is it a horrible idea. Ms. Robyn. I hear that. I heard that from Congresswoman Edwards, as well, earlier. But it is another---- Ms. Norton. We will strike that from the record. [Laughter.] Ms. Norton. We have had--and I know my time is over--we have had some dealings, Dr. Robyn, with you and with force protection standards that harmed this entire region, which we think are gone forever. Ms. Robyn. They are, yes. I worked to change those. Ms. Norton. That required the kind of setbacks that would mean that you could locate almost nothing of the Federal Government in this region. Ms. Robyn. No. Well, that is--I think--so let me just clarify, because--so, first of all, those, the standards, were changed. Ms. Norton. Yes. Ms. Robyn. And I think I had something to do with that, and thank you---- Ms. Norton. And I thank you for that. Ms. Robyn [continuing]. For your support on that. But secondly, my thought of--and it is just an idea that I have thrown out, and it has not gotten a lot of support, but is that if one were to put this new headquarters at, say, Andrews Air Force Base or Anacostia-Bolling, you would not need the large setbacks, because it would already be within a secure perimeter. So it would be precisely to get away from the large setback that one would want to consider that. Mr. Barletta. Thank you, Ranking Member Norton. We will have a second round, if there are more questions. But now I would like to recognize former full committee chair, Mr. Mica. Mr. Mica. Well, thank you. And thank you, Mr. Chairman, I appreciate your leadership in chairing this important subcommittee, and continuing to deal with Ms. Norton. Both of those deserve high praise. Ms. Norton, did you hear that? [Laughter.] Mr. Mica. Well, she will--staff will inform her later and she will get even with me. But pleased to participate today. I have been involved, of course, with GSA prior to becoming chair of the full committee. We produced a report entitled, ``Sitting on Our Assets: The Federal Government's Misuse of Taxpayer-Owned Assets,'' and we tried to pick up, when we gained the Majority, looking at--and the beginning of that report, if you read it--I think it is still online--focusing on GSA and their dealing with public buildings. And the largest trustee of public assets I think we have is GSA and, of course, the Federal Government, has some broader jurisdiction across the hall in Government reform, and we will continue that, which we have done most recently--we had a narrow scope in this committee--much broader. And I am absolutely appalled at what I am finding as we continue our work, looking at these. First of all, Ms. Robyn, how many square feet is the new building going to require? Ms. Robyn. The RFI says up to 2.1 million. Mr. Mica. Square feet. All in one location. OK. Secondly, you--to do that you have to make a decision on how you are going to do it. That would cost quite a bit of money. What is the estimate that it would cost to build 2 million square feet? Ms. Robyn. We have not made an estimate of that. Mr. Mica. Well, come on. You are---- Ms. Robyn. I will defer to---- Mr. Mica [continuing]. GSA. Tell me what it would cost to build a Federal building. Ms. Robyn. It is---- Mr. Mica. Were you doing $1,000, $500 a square foot? Ms. Robyn. It is a substantial amount of money. But, sir, I don't---- Mr. Mica. But I want to know the range, OK? And you are not going to get it from this Congress or the next Congress, I don't believe. Is that--has that money been appropriated? Ms. Robyn. No. Mr. Mica. OK. So you are not going to have the money. So you look at your alternatives. The agency has recommended that possibly a lease and then a eventual possession by the Federal Government. That is one of your options, right, since you don't have the money? Ms. Robyn. Yes. Mr. Mica. Have you made a decision on how you are going to approach this to get them out of there? Ms. Robyn. No, sir. We have---- Mr. Mica. You have an evaluation that we see in the report. They are right now sited downtown and you have other spaces. Is that correct? Ms. Robyn. They---- Mr. Mica. Sir? Mr. Perkins? Mr. Perkins. Yes, sir, that is correct. Mr. Mica. How many total square feet do you occupy now? Mr. Perkins. Just over 3 million square feet. Mr. Mica. And you are going to consolidate that? You can get by with 2.2 million? Mr. Perkins. Yes, sir, the---- Mr. Mica. So there would be some savings? Mr. Perkins. There would be considerable savings. Mr. Mica. And that would have some value to the Government. Mr. Perkins. Yes, sir. Mr. Mica. Do you know how much that would be? Ms. Robyn. Well, the FBI's number is $44 million. Mr. Mica. OK. Ms. Robyn. That is an---- Mr. Mica. And that has some value to the Federal Government. Ms. Robyn. Yes. Mr. Mica. If you multiply it out over the number of years. Ms. Robyn. Yes. Mr. Mica. So, when you--you are not going to get the money from the Federal Government. So somebody has got to make a damn decision of moving forward. When do you expect that will be? Ms. Robyn. We--in my opening statement I made clear that we are looking principally at the potential to exchange the value of the J. Edgar Hoover for a new facility---- Mr. Mica. OK. Ms. Robyn [continuing]. An exchange. Mr. Mica. And you are negotiating that. OK. Ms. Robyn. We are not negotiating yet---- Mr. Mica. How long will you let that go on? Ms. Robyn [continuing]. We are--we put out an RFI. Mr. Mica. OK. Ms. Robyn. The responses were due---- Mr. Mica. When is---- Ms. Robyn [continuing]. March 4th. We got 35 responses. Mr. Mica. And how long---- Ms. Robyn. We are working---- Mr. Mica [continuing]. Will it take you to evaluate them? Ms. Robyn. It will take---- Mr. Mica. Give me a date. Come on. This is business. Ms. Robyn. It will take a couple of months to go through 35 responses---- Mr. Mica. OK. So 60 days you will have an answer. That is the problem with Government versus business in the private sector. Nobody can make a decision or meet a timeline. Now, I just got through being down at the--Miami to look at the Federal courthouse. Sitting empty, a Federal building, for more than 5 years. They knew 2 years before that that that building was going to be empty. And nobody has made a damn decision yet on what to do with it, costing $1.2 million a year. A total of just 5 years is $6 million to keep an empty building maintained. Now, do you have a plan? Are you going to--are they going to vacate the building downtown, sir? That is the plan? Mr. Perkins. That is one of the options---- Mr. Mica. That is your major, principal location. Mr. Perkins. Yes, sir. Mr. Mica. Do you have a plan to do something with that building? Mr. Perkins. With J. Edgar Hoover? We would---- Mr. Mica. Are you starting that process now? Ms. Robyn. The---- Mr. Mica. I will bet there isn't plan one. Ms. Robyn. Sir---- Mr. Mica. I will bet there isn't a clue as to what to do with it. Ms. Robyn. Could---- Mr. Mica. Now, if I really want to go after you, the FTC building, again, we have down the street. The consolidation of that, we propose, would save a half-a-billion dollars. But God forbid we should do that or consolidate it all in one location. Ms. Robyn. The nature of an exchange is that we would, in effect, auction off the Hoover Building---- Mr. Mica. Yes. Ms. Robyn [continuing]. To a developer. And in exchange for that value, they would build a new facility. Mr. Mica. Well, thank you. Ms. Robyn. That would be up to the developer---- Mr. Mica. I don't mean to give you a hard time. And thank you for also building in the power station. This week you announced that it went online auction. And we held a hearing in the vacant 2.08-acre power station. Just for the record, that will bring in $19.5 million. Ms. Robyn. Yes. Mr. Mica. We also have the Old Post Office building, and I hope that deal is moving forward. Ms. Robyn. Yes. Mr. Mica. But we have--I think we had 14,000 properties. I only have 13,994 more to go. Thank you and yield back the rest of my time. If you have a second round, I will be here and I will also submit questions for the record. Thank you. Mr. Barletta. Thank you, Chairman Mica. Now I would like to recognize Ms. Edwards for 5 minutes. Ms. Edwards. Thank you, Mr. Chairman. And thank you also to the witnesses this morning. I appreciate the insight that I have already gotten from our discussion thus far. I want to clarify something, because I am looking at the Senate Environment and Public Works Committee-approved resolution, and just want to be clear about what your understanding of that resolution is, and whether you believe that it excludes sites within the District of Columbia from also competing in this eventual competition. Ms. Robyn. I would have to ask our general counsel to interpret it. I would just say here that we intentionally cast the RFI more broadly so as to encourage the maximum amount of ideas and interest at this stage. So we didn't--we did not limit the RFI based on the Senate resolution. I don't know whether, as a legal matter, whether the Senate resolution would---- Ms. Edwards. It would be helpful, perhaps not here, but to have your counsel's interpretation of that for our consideration. Ms. Robyn. OK. Ms. Edwards. I want to ask you about the--in the GSA study report, on page 4 specifically, I just want to read to you what your report says, that ``the location of the facility is assumed to be within 2.0 miles of the Metro station and 2.5 miles of''--and I emphasize ``of'' because it is a different preposition--``the Capital Beltway with site costs similar to those found in the more developed, close-in suburban areas as a means to estimate the maximum cost the Government would incur.'' And so, I want to make sure that we are also following--as we move forward, Mr. Chairman or Ranking Member--that we are also following the recommendations that were laid out in the GSA report, and that we come as close to that as possible in our own work. Ms. Robyn. Could I just clarify? Ms. Edwards. Yes. Ms. Robyn. The--those figures were used for purposes of doing a valuation, valuation of property at various locations in the national capital region. They were not inserted as a siting criterion. So that is an important distinction. They were for purposes of valuing land. Ms. Edwards. Thanks for the---- Ms. Robyn. Land and property, yes. Ms. Edwards. Thank you for the clarification. Excuse me. I also want to know how the Hoover Building fits into a potential financial structure for the new headquarters building. Mr. Perkins, if you could, clarify that for us. Mr. Perkins. Certainly. I may draw upon my GSA colleague in assistance with that, but the Hoover Building, the way it is being proposed in the FBI's report, would serve as part of the public-private partnership to where we would exchange that facility and that property with a developer who has a plan to be able to build a facility for us in an acceptable area. At that time, then, at the end of the construction, if I am correct, the Hoover Building--that property would become the property of the developer, to develop as he or she sees fit, going forward. And then we would then eventually acquire possession of the new facility, as it is completed, and over the lease term. And correct any of the technical aspects of that. Ms. Edwards. That was a yes, Ms. Robyn, right? Let me ask you as well, Dr. Robyn, if the GSA has gotten any independent expert advice regarding the actual valuation of the J. Edgar Hoover Building. And, if so, from whom? And what did you learn? Ms. Robyn. It has been appraised at several points along the way. I don't feel comfortable throwing those numbers out. They are not--I don't think they have ever been widely circulated. There was a Jones Lang LaSalle report in 2005, 2006, that included an appraisal done by a subcontractor to them. I believe we did another one later, within the last year or two. And typically, they appraise the value as-is, and then the value of the unimproved land, as well as a number of other variations on those. I just don't--those numbers are out there. I would be happy to brief you on them privately. I don't feel comfortable sharing them more broadly. Ms. Edwards. At what point will, as part of this process, will we have some sense of the real valuation of the property for the purposes of figuring out whether the savings to the taxpayer is $44 million in, you know, in opportunities around, or perhaps the savings might even be more, depending on the valuation of that property in exchange. Ms. Robyn. Well, I think that we--I mean, ultimately, one doesn't know the value of a piece of property until you sell it. The market tells you what the property is worth. We think we can--we would certainly do everything we could to raise that value before we sold it, by working with the District of Columbia on the historic status of the building, on, you know, possible other changes that would allow for maximum use of that very desirable property. I think we can get a sense of what it is worth from an appraisal. But ultimately, one doesn't know until you actually sell the property. Ms. Edwards. Thank you. Mr. Barletta. Mr. Perkins, the FBI report and the Urban Land Institute report each have detailed cost figures for the proposed FBI headquarters. Can you briefly summarize what it will cost to build a new headquarters? And can this committee rely on those numbers for the purpose of authorizing a new headquarters? Mr. Perkins. Yes, sir. I can give some approximate numbers on that. The Urban Land Institute was actually brought in following our conducting our own internal study to really check our math and put a second set of eyes on the document. The findings they came up with were fairly on par with what ours did. As far as the actual cost of what we would take, in looking at that type of a facility, looking at approximately $1.2 billion coming up with the square footage we needed to put that together. And that is over the term. That is the construction plus--well, that gives us the 2.2 million square feet, including the land costs involved in that. Mr. Barletta. Can the FBI's proposal be financed through a lease utilizing--without utilizing the value of the Pennsylvania Avenue property? Mr. Perkins. I will take a stab at that, and will also defer to my colleague from GSA. I would say that is going to be a very difficult road to go down, if not--especially in the current fiscal climate in which we are operating. Mr. Barletta. Dr. Robyn, how does GSA and FBI propose to pay a developer for any difference between the value of the Hoover Building and the cost to build a new FBI headquarters complex? It is questionable whether the Hoover property will provide sufficient funds to--as an option for a 2-million- square-foot new facility. And how do you propose that they will pay for that? Ms. Robyn. That is a fair question. I am not ready to concede that the value of Hoover won't cover the value of a headquarters. I think we don't know what the value of Hoover is. But I think it--a lot of it comes down to land, whether the land--whether the Federal Government would be purchasing the land, or whether we would be getting the land for nothing. So, it is not obvious to me that one would cost more than the other. A major question that we put out in the RFI was--to developers was if there is a--if you think there is a disparity, how would you propose to cover it? There are a variety of ways. There may be other property, other GSA property that we would be willing to also exchange, or that we would propose to exchange to add to the value. One could do continued leasing some space for the FBI. One could do something in phases, like we are doing at St. Elizabeths, although we would like to avoid that. Mr. Barletta. Is there a list of properties that you may look at as an option? Ms. Robyn. In the national capital---- Mr. Barletta. To add to the exchange. Ms. Robyn. No, no. I am putting that out as a conceptual alternative, but I don't have other--a short list of other properties. Mr. Barletta. Assuming GSA proceeds with the project and gets to the point of issuing a request for proposals, is GSA taking any steps to seek and use outside expertise to advise GSA in the process? And if you could, please explain. Ms. Robyn. Yes, we have. The FBI and GSA began talking about this 9 years ago. Director Mueller and the then-head of the GSA, Perry, met in 2004. We have both done a series of studies that have drawn on outside experts to do housing studies to look at the condition of the Hoover Building, to appraise the value, a variety of things. So, we have done two things: one, reach out to outside experts, and then draw on the best and brightest we have inside GSA to work on this project. And we will continue to do that. Mr. Barletta. OK, thank you. I will turn to Ranking Member Norton. Ms. Norton. Just a few more questions, Mr. Chairman. I want to get back to this 2.1 million square feet. That was in the initial report. One thing I believe this subcommittee will hold GSA to is its requirements for smaller amounts of space and square footage. Do you believe that perhaps, given the new requirements, that 2.1--that less than 2.5 million square feet may do for a new headquarters? Ms. Robyn. We were clear to say in the RFI ``up to,'' up to 2.1 million. So we haven't locked in on that number. I think it---- Ms. Norton. Well, how did you get to that number? Did that number include the space allocations that the administration now has mandated, as well as this committee? Ms. Robyn. Yes. That represents taking those people that the FBI believes need to be in the consolidated headquarters and allocating a--it is a pretty conservative space number for them. Ms. Norton. Well, I mean, is it--does it keep--first of all, I am not sure that that--that may have been issued before the mandate for---- Ms. Robyn. Yes. Well, we--yes. We--I mean we have been working---- Ms. Norton. So all I am asking is have you---- Ms. Robyn. Can it go further? I---- Ms. Norton. The mandate was--came down from the administration, it came down from this committee. For example, the Coast Guard headquarters---- Ms. Robyn. Right. Ms. Norton [continuing]. Was done before that mandate. And what I am asking you is--was the 2.1 million square feet, up to 2.1 square feet, did it take into account the mandate that says you must reduce the per-employee space in Federal buildings? Ms. Robyn. It represents a 30-percent reduction in space. So, yes, it did. Ms. Norton. That is my only question. Ms. Robyn. Yes. An apples-to-apples comparison, would--the FBI would be going from, I think, 3.1 to 2.1--3 to 2.1. So it is a 30-percent reduction. Even before the OMB mandate, we have been very aggressively pushing agencies to downsize their footprint. And that--and the FBI is very much on board, because it supports their effort to go to more collaborative, open workspace. Ms. Norton. Well, does the building take into account-- well, first of all, let me ask Mr. Perkins. Do you see further growth in the FBI? And does the--will the new site take into account for the growth, if you do see further growth in the FBI? Mr. Perkins. Yes, ma'am, it does. It accounts for the growth over the coming years. And the key point to remember here is in shrinking down from 21 facilities to a single facility, you are eliminating a significant number of overlapping space, great inefficiencies. When you are dropping 800,000 square feet, it is easy to be able to put all of us into 1 facility at 2.1, versus the 21 that are out there, or the 20-plus headquarters. So--but to answer your question, yes indeed, it does look at the future growth of the FBI and the potential for that, going forward. Ms. Norton. Mr. Perkins, did you have any role in the RFI delineation? Mr. Perkins. I had no direct role in the development of the RFI. Ms. Norton. Were you consulted? Mr. Perkins. Yes, ma'am. Well, our assistant director for facilities, who is in my chain of command. Yes, ma'am. The FBI was consulted in that. Ms. Norton. Let me ask about the role--I can understand it was, of course--it is always advisable to consult the agency. But Dr. Robyn, you may know that this subcommittee has repeatedly criticized GSA for allowing agencies disproportionate authority over what happens in the agency, including where things could go. I mean we have agencies on K Street who could have gone to other parts of the region and the city. In order for me to get people to go to NOMA, which is a stone's throw from the Senate, I had to beat--if you will forgive me--GSA about the head and shoulders. There have been some, I am going to say, disparaging remarks made about going to one part of the region. So I have got to ask. What role will the FBI have when the ultimate authority under the statute is with the GSA? Ms. Robyn. On this issue, as on others, we have--we wear two hats. On the one, we try to be customer-friendly to our Federal agency customers. At the same time, we do--we play a sheriff role. And downsizing square footage and getting agencies out of leased space and into less expensive space is also part of our role. So we play that dual role here, as we do in other places. Ms. Norton. Dr. Robyn, all I am saying is--and you have to play a dual role. The role of sheriff has been much overcome in the past, so that agencies have cost the taxpayers billions of dollars, just by essentially having the final say on matters that were within the authority of this agency. And that is something we will be watching. If I could ask one more question, Mr. Chairman, and that is about the Old Post Office. What is the status of the Old Post Office, which has been a virtual project of this subcommittee? Ms. Robyn. Yes, and thank you very much for your support. You know, we announced a year ago that the Trump organization is the preferred developer. We said that we are going to need a year to negotiate it. These things take time when you are talking about--and we are at that point. We are still negotiating, but we are hopeful that we will--you know, we are not going to take a bad deal, but we are hopeful that we will have--that we will complete our negotiations relatively soon. Ms. Norton. Thank you, Mr. Chairman. Mr. Barletta. Thank you. I would like to recognize Mr. Mica. Mr. Mica. That is astounding, that it has taken you a year to negotiate. What the hell would you doing, when you should have been having a deal that was close to just sewing up? It is unbelievable. Mr. Chairman, maybe you need to go do another hearing in that vacant building down there. This is appalling, the way we manage our Federal properties. It is just beyond the pale. OK. You said you got $44 million in savings, right? Mr. Perkins. Yes, sir. Mr. Mica. Perkins? OK. You multiply that about 27 years, that is worth about $1 billion--10 times 44 is 440, 27, 28 years, that has got $1 billion value. Did you tell, or somebody testify that you had--it would cost you about 300--you need 60 to 70 acres. Is that right, 50 to 70? Mr. Perkins. Between 45 and 50---- Mr. Mica. Forty-five? OK. But your estimate in cost is about $300 million, right? Just a guess. In the capital region, you are going to--it is going to cost you that much? Give me a ballpark. Quarter of a million? Mr. Perkins. The value of the land. Yes, sir. Mr. Mica. Yes, OK. Sorry, Ms. Norton, you got screwed in this whole process, I saw, with the Senate resolution. Figured this one out. They kind of excluded you from--this is neat, the way they craft it. They just don't happen to have a Senator, so they screwed her. [Laughter.] Mr. Mica. But thank you, GSA, for helping her, because your RFI, whatever, your Request for Information, actually allowed the District to be considered, property in the District. Is that right? Ms. Robyn. All parts, yes. Mr. Mica. So we--this isn't a request even for proposal, folks. This is a request for information. But that is the game that is being played there, interestingly enough. Now, if someone was doing their job in GSA, you would look at the Federal properties that we have, so we could save $300 million to start. We have $1 billion we could save there. If this thing is going to cost you $2 billion, that is a $700 million deficit that we would have to make up for, get the private sector to--there may be more than that, but the Federal Government, in the meantime, would be paying an average of $44 million. Just thinking this thing out, there are plenty of properties. I was stunned to find out that there is 7,000 acres in Beltsville at the Agricultural Research Service station at Beltsville, Maryland, 7,000 acres. This is one of the principal buildings out there. Can you see it from here? From there? I know I had a big blowup. I don't have it. This is the Food and Drug Administration building, windows knocked out. There are rows of office building. Seven thousand acres. You need 45 to 70? Mr. Perkins. Yes, sir. Mr. Mica. Then I went across the other way to--and I am not picking sides in this fight. That is Maryland. Here is a site we could save $300 million, $250 million, or whatever. I went out to Springfield. At the Metro stop--I took the Metro back, folks, to save money on gas. Didn't charge the taxpayers for it. The Metro stop, how many acres, 70 acres out there? They use it for storage, storing files and storing doors and stuff. I went out and looked at it myself. A million square feet on about 70 prime acres we could use. So, I would think someone would put a deal together, or at least your RFI would say we have the opportunity to use some Federal buildings. Those are only two sites, one in Maryland, one Virginia--not picking sides. Ms. Norton has one in--what is it the staff told me? Yes, OK. Not that I am a fan of the District, and I have my little war going with her on things, but we have sites. Nine years? Did you say 9 years that they have been going back and forth, talking about this? Ms. Robyn. Yes. Mr. Mica. And then you gave me 60 days for the Request for Information? You think you would have a Request for Proposals after that? Ms. Robyn. Well, I don't think it will be 60 days, no. I think it is going to take---- Mr. Mica. Do you need more direction from Congress? You want something from this side of the aisle? Is this enough to work with? Ms. Robyn [continuing]. Take longer. We always welcome---- Mr. Mica. OK. But again, it is so frustrating. We could save money, we could house our chief law enforcement agency, the FBI, and provide some of this space, if somebody would start thinking, if we had people with a little bit of common sense. Again, I have to go back to you all looking at--the thing that stuns me, like when I went out to Beltsville, I know it is the Department of Agriculture. Nobody has a plan of what to do with this. There are 500 buildings on that property, 200 of them are vacant, vacant or smashed in, like this. And no one has a plan. Do you--and I saw the information you provide on real estate assessments from the agency that almost all the information is incorrect. In fact, some of them have vacant buildings and smashed out buildings like this that they report as in good shape. This is a broken system, when we are closing down and sequestering vital services of Government, and we have billions of dollars of waste, and nobody is doing anything about it. Ms. Robyn. And, sir, I have told you in an--first of all, as you know, that is not GSA property. And I have stressed to you, coming from 3 years in the Defense Department, that we need a civilian BRAC. Mr. Mica. Ah, Defense. Ms. Robyn. We need a civilian BRAC. Mr. Mica. Post Office, Defense. It is more than a BRAC, and I yield back---- Ms. Robyn. We need a---- Mr. Mica [continuing]. The balance of my time. Ms. Robyn. Can I--I want to just point out something, that the conversation about building the J. Edgar Hoover Building began in the early 1960s. The building was finished in 1974. The reason was lack of funding. Lack--so this is an old--you know, these things--this is the dilemma that we---- Mr. Mica. So we are following that pattern again. Ms. Robyn. Well, it is an age-old problem. The Old Executive Office Building, the same thing. It took two decades---- Mr. Mica. God forbid we should drag ourselves into the---- Ms. Robyn. It is not---- Mr. Mica [continuing]. 21st century of fiscal responsibility. Amen. Mr. Barletta. Thank you, Mr. Mica. And Ms. Edwards? Ms. Edwards. Thank you, Mr. Chairman. And I just want to say to Mr. Mica that I would be happy to work with him on making sure that the Beltsville agricultural property becomes the new campus of the FBI. [Laughter.] Ms. Edwards. Well--and I am sure that as the GSA and FBI move forward on going from where we are right now to a Request for Proposals, that you will make certain that this process is open and fair, and that sites like the Beltsville agricultural property can be part of this consideration. I want to ask you, actually, Mr. Perkins, if you have any concern--and this is actually somewhat related to Beltsville-- if you have any concerns in a new FBI headquarters would be adjacent to support of mixed use development to enhance the overall work environment for the workforce. Do you have any concerns about that, or--any security concerns or otherwise? Mr. Perkins. No, ma'am. I believe, as I have noted, I want to make sure that whatever facility we wind up in allows us to carry out our mission and keeps our workforce secure. Those are the two main issues. And if--depending on what the adjacent properties were, their types of usage would all be considered in any kind of a request. We would hope to be a part of that discussion. Obviously, to meet those security requirements it would require certain offsets and all, as you know. But no, in answer to your question, it would not be a major concern if the adequate offset in space was available. Ms. Edwards. Thank you. I wonder also if you could--when we go to those security concerns--if the FBI headquarters has to be built to satisfy Interagency Security Committee Level V security specifications, that with that in mind, what would be your view, in terms of the area that would ideally be encompassed for a new and consolidated headquarters? Do you have any thoughts about that? Mr. Perkins. Well, I think I have really--with the requirements we have put out, we are going to lean heavily on the GSA to come up with that location. I think there are locations in each of the areas that we have discussed today that would be adequate to meet our needs, just based on what we know at this point. There are pluses and minuses. There are--there has been reference to where FBI employees live and commute from. I don't have the exact numbers of where all of our people reside, but I do know we have an adequate and representative number in each of both Maryland, Virginia, and the District. I will note that the three top officials within the FBI, one lives in each of those areas. We have one of us in the District, one in Maryland, and one in Virginia. So there is, ironically, an equal representation there. But the security concerns are significant for us, especially as we are--where we are located at the current time, which is probably the worst of all of the agencies in the intelligence community. Ms. Edwards. Thank you. And Dr. Robyn, I want to go to something that our Ranking Member Norton suggested as she was asking questions, and that goes to the concern that, whether it is true or not--and we can go around and around about that-- that there, at least in my jurisdiction, has been some perception that the GSA has not always acted as a fair arbiter and that, in fact, building on what Ranking Member Norton discussed, that, in fact, that GSA, in some instances, has been perceived to actually favor agency requests that can sometimes take a back seat to what is the best benefit of the bargain for the taxpayer. And I would only say this, that this is a new day. This is a new Congress. And this is a new process for the FBI and for the GSA. And I would just strongly, strongly urge you to take those criticisms into consideration, and to move forward in a very different kind of way. Because there are a lot of eyes watching the GSA. And when you look at the amount of money that is currently spent by the FBI on its operations, on its leasing operations, $168 million, if there is any potential, given the choices, to make sure that the taxpayer saves a boatload of money, all of us have an interest in doing that in this very constrained fiscal environment. And, at the same time, we want to make sure that the agency and its workforce are able to meet the mission of the Bureau in a location that is acceptable and is secure, and that the process itself is open, and that GSA is the one who is leading the process, and not following, because of one agency head or other. And that is not to disparage at all the FBI, but to say that we just want a fair and open process, and all of our jurisdictions want to have the capacity to compete. Thank you, Mr. Chairman. Mr. Barletta. Thank you, Ms. Edwards. And, Mr. Perkins, what would be an appropriate limit for the cost of a new facility on a per-square-foot basis? Mr. Perkins. I would have to get back to you with an exact answer on that, sir, as far as the per-square-foot basis goes. I think in an earlier--I wanted to clarify something as well on one of the questions on the facility itself involving the J. Edgar Hoover Building. If we were to trade the Hoover Building, it would be for the land cost involved. And thus, we would then utilize, in the public-private partnership, the funding and financing of a private entity to build and construct that building over time. Mr. Barletta. The reports have some cost. Would they be accurate? Can we rely on the report? Mr. Perkins. Go ahead, Pat. Mr. Findlay. Yes. We have checked any changes in construction design cost, and they are very, very close. And there was some contingencies and allowances built in, so those still appear to be very valid. Mr. Barletta. And what is the proposed rental rate or cap you would propose for a consolidated headquarters without the Hoover Building exchange? Mr. Findlay. Both our report and, really, the private sector through Urban Land Institute confirmed that that could definitely be done at around $54 per square foot. If I could point out, though, the estimate is the Government would be receiving something in excess of $5 per square foot for the ground lease per the approach that we are using. Mr. Barletta. And what would the estimated rental rate be with an exchange? Mr. Findlay. A whole lot better. Mr. Barletta. Dr. Robyn, how can Congress ensure adequate cost controls? And is setting a maximum rental rate one way to control those costs? Ms. Robyn. I don't--I am not sure what the answer--I mean I think working--we will work closely with you. I don't know whether that is the best way. I mean I think the--we will rely fundamentally on competition to get the best rate. I am not sure how else to answer that. I mean we do set--we set caps within the national capital region on leased rental rates. And you know, frankly, as an economist, I have mixed feelings about that. It kind of amounts to rent control, but we do that. We limit the amount that agencies can pay for leases. So it is a--but at the end of the day we are relying on competition to get us the best deal for the taxpayer. Mr. Barletta. Mr. Perkins, one of the areas that can cost to increase are obviously change orders and changing requirements. How will the FBI ensure that its requirements are all thoroughly identified upfront, so there are no costly change orders or increases, once the project begins? Mr. Perkins. One of the most important ways is we will have a complete development team formed within the FBI that will work closely with the GSA to go forward. We are quickly--well, we have already realized the mammoth scope of what this undertaking would be that would require significant oversight internally within the FBI, as well as with our partners at GSA, going forward. So we would have a dedicated team of individuals who would solely be working on this project to ensure those issues and to ensure both requirements were met and cost controls were in place. Mr. Barletta. Thank you. Ms. Norton? Ms. Norton. So far as you know, Dr. Robyn, has the GSA ever engaged in developing a facility using the flexibility that we have now given you? Ms. Robyn. You mean the exchange---- Ms. Norton. Have you ever had any experience? Ms. Robyn. Using the exchange authority? Is that---- Ms. Norton. Or 412 authority, 585 authority, the different authorities, some of which you already had---- Ms. Robyn. Yes. Ms. Norton [continuing]. But the subcommittee made it even more explicit a number of years ago. Have you any experience using flexible authority? Ms. Robyn. We have---- Ms. Norton. To develop a construction. Ms. Robyn. We have used the exchange authority in limited ways, nothing this large. Ms. Norton. Because there will be some who wonder whether you can manage this authority. It took you so long to use it, took GSA so long to use it. Ms. Robyn. Well, it---- Ms. Norton. It is not exactly unknown to people engaged in real estate, but--and many of your staff have come out of, of course, professional real estate. But how do you plan to organize internally to do what you have never done before, and what you seemed unwilling to do before? And I must say, as I ask this question, that I am cheered that your administrator is Mr. Tangherlini. This is an administrator who comes from OMB, and that may have something to do with the fact that OMB now understands more about the costs it puts on the agency by not allowing that flexibility. But now that you have it for the FBI, and you have never really used it, how will you organize the GSA to use it? Or will you bring in consultants to help you manage this authority? Ms. Robyn. I think both. Let me just speak to why we haven't used it. And I am new here, I have only been here 6 months. But I think our preference, as I have said, is always to do Federal construction. That is always the---- Ms. Norton. No, I understand that. Ms. Robyn [continuing]. The least cost approach. So in---- Ms. Norton. I understand that. But, for example, you are not going to be able to do that---- Ms. Robyn. Right. Ms. Norton [continuing]. With the remainder of the Department of Homeland Security, and we have heard nothing from the GSA about how it purports to continue building that facility, also a secure facility. And, of course, this is going to end up being a pilot, because if you can do it here---- Ms. Robyn. Yes. Ms. Norton [continuing]. Perhaps you can do it---- Ms. Robyn. Right. Ms. Norton [continuing]. There. Ms. Robyn. Yes, yes. I---- Ms. Norton. But we know what--everybody knows that if the chairman and I wanted to buy a house, and we had the cash to put down, it would cost us less than taking a mortgage. So we understand that. Ms. Robyn. Right. Ms. Norton. And nobody does that, even those who can afford it don't do that. So you can't afford it this time. You have not done it before. How will--how are we to have confidence that you can do it? Are you relying only on staff that you have who have been building, for example, the Department of Homeland Security so well? Or will you be relying as well on others who have---- Ms. Robyn. Well---- Ms. Norton [continuing]. Who have had this experience? Ms. Robyn. I think our--I mean we have asked for--I don't think that there has been a problem with the way we have managed the Department of Homeland Security. We have not gotten the funding---- Ms. Norton. You managed it very well, but you weren't using this authority. Ms. Robyn [continuing]. That we requested--well, yes. Ms. Norton. We got you more than $2 billion. Ms. Robyn. Right. Ms. Norton. And I am asking you---- Ms. Robyn. Yes. Ms. Norton [continuing]. When you now have new flexibility that you haven't used before, can you tell this subcommittee that you can manage that? And if so, is it going to take reorganization of some kind within the GSA? Are you relying on consultants? That is my direct question. Ms. Robyn. It is both. It is both. It is not going to require a reorganization of the agency. We have done headquarters projects before. The Department of Transportation headquarters project you are very familiar with. That is one where it is a capital lease. We will be paying rent on the Department of Transportation headquarters for 30 years, and then we will have to sign another lease and pay rent for another 30 years. We don't want to do that. So we are trying another approach. But it is not fundamentally different than what we were-- what we have been doing. And I think it does reflect the acting administrator's knowledge of OMB and scoring challenges. Ms. Norton. Well, I agree with you, Dr. Robyn. I think you have all along had the capacity and the skill to do it. You haven't had the will to do it. And now that Mr. Tangherlini has stepped up and you have that kind of leadership, that increases my confidence that the agency can pull it off. Thank you, Mr. Chairman. Mr. Barletta. Ms. Edwards? Ms. Edwards. Mr. Chairman, I just have one last question. And it relates to the question that you were asking of Dr. Robyn, and it has to do with the idea of--that you either encourage competition, as you have done--as you suggested, through the RFI process, or setting maximum lease rates. And I want to ask you about that, because there has been some concerns expressed over a period of time by me and others on this committee that when you set--when GSA sets maximum lease rates, that that actually has not been done fairly through the region, which has greatly disadvantaged some jurisdictions over other jurisdictions. And so, if the GSA chooses to go that route, do we have assurances that the--a maximum lease rate that you would set would be equally set in the region, so that everybody in the region would be competing fairly? Or would you continue the process which is only true here in the Metropolitan Washington area, where one county or one jurisdiction has a different rate than another jurisdiction, which really discourages competition? Ms. Robyn. Those rates apply to a scenario where we would be leasing space. And I would hope we would not be leasing space. So I will leave it at that. I think you are raising a broader issue, and I am torn on that broader issue. I can see arguments on both sides. But for purposes of this, I would hope that won't be an issue, because I would hope that we won't be in leased space. Ms. Edwards. Well, I am just suggesting to you right now that, going forward, even if that were ever a consideration, I just think it would be a nonstarter for GSA again to pursue a route of valuing leased space differently in the same metropolitan region where all of us have to operate under the same constraints. Ms. Robyn. Yes. Ms. Edwards. And--but I do share the view that the preference is the kind of competition that you envision that allows all of us in the region to compete fairly. Ms. Robyn. Let me just add that when we set rents, even in our own space, it does--we do it using commercial methodology, and it reflects the commercial rents in the area. So, it is--we don't set it for the entire NCR, we do--but it does--it reflects what commercial rents are in the area. But---- Ms. Edwards. As I finish, just to reiterate---- Ms. Robyn. Yes. Ms. Edwards [continuing]. The Metropolitan Washington area is the only---- Ms. Robyn. Yes. Ms. Edwards [continuing]. Region in the country where you do that. Every other region, those kind of rates are set regionally, except here, with zero justification, zero explanation. And I--we digress from the FBI, but I want to make this very clear for our record, because time and again GSA has appeared before this committee and can't even offer a history, a record, an explanation about why those differences exist, except that they do. And they greatly disadvantage my county in Prince George's County. And we are not going to go forward like that. Let's just do a competition. Mr. Chairman, I yield back. Mr. Barletta. Thank you. Dr. Robyn, earlier you said that it was premature to talk about a prospectus for the project. Yet the committee needs a prospectus, or least a cost information that is included in the prospectus, in order to authorize the project. So when will the GSA provide the committee with the information and the request for the committee to move forward? Ms. Robyn. I think we need to digest the 35 responses that we got to the--one of them was larger than a bread box, so there is a lot of material for us to digest. But as soon as we have something meaningful, I would be happy to have--to brief you on that. I don't want to commit to--I am not--you know, hopefully the next step will be an RFP, but I don't want to make any commitments until we see what we got. Mr. Barletta. I will take you up on that offer. Ms. Robyn. Thank you. Mr. Barletta. If there are no further questions, I would ask unanimous consent for the record that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them in writing, and unanimous consent that the record remain open for 15 days for any additional comments and information submitted by Members or witnesses to be included in the record of today's hearings. [No response.] Mr. Barletta. Without objection, so ordered. I would like to thank our witnesses again for their testimony today. If no other Members have anything to add, the subcommittee stands adjourned. [Whereupon, at 12:08 p.m., the subcommittee was adjourned.]