Department of Labor relocation saves $51M

The relocation project for the Department of Labor’s Philadelphia Office reached substantial completion on Aug. 21, 2020. This lease consolidates 15 different sub-agencies. The GSA team completed the project despite setbacks from the pandemic and challenges with exiting the prior leased space.

Department of Labor Interior space of the new open workspace, as well as a photo of a small library space
Interior of the new open workspace and small library space.

This unique project has reduced Labor's footprint from nearly 115,000 to 78,000 square feet. Each agency had its own budget for costs associated with the new space, adding to the challenge and importance of collaboration between GSA and DOL’s Office of the Assistant Secretary for Administration and Management, the primary contact for the project.

The relocation to the new 18th and Market Street location will produce over $51 million in lease-cost avoidance. The award is 40% below market value and reduces DOL space by 32%.

“DOL’s Philadelphia regional office move was a huge effort, extending over more than a four-year period, and involving close collaboration among many stakeholders and partners,” said Robert Lazarski, Director of Safety, Security, Emergency Preparedness and Administrative Services for OASAM.

“GSA’s project management team did an outstanding job overcoming significant challenges, including tight budgets, government shutdowns, and a worldwide pandemic. The resulting workspace meets the Department’s space management objectives, and offers state-of-the-art IT infrastructure, energy efficiency, and sound masking. Physical security features also provide DOL agencies improvements in safety and security. Our employees have been quite impressed.”

The R3 project team awarded the 10-year-firm lease using GSA's Automated Advanced Acquisition Program to find and secure space. The new space allows Labor’s 15 agencies to be housed together in suites that use shared conference and break rooms. All Labor employees were moved into the new location by October 19, 2020.

This article is part of the Winter issue of the FOCUS newsletter. Please visit the Focus Newsletter page to read our newsletter.

Last Reviewed: 2021-01-12