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San Diego Real Estate team saves IRS over $1M

By Javier Fernandez

Hilo Lagoon Center
The Hilo Lagoon Center in Hawaii houses the IRS offices.

The Internal Revenue Service (IRS) recently gave high praise to GSA’s Pacific Rim Region for helping them save over $1 million in taxpayer funds and reduce their office footprint.

IRS approached GSA’s San Diego Real Estate team to request expansion space for their Hilo, Hawaii office. During the design phase, the IRS realized they had a significant drop in staffing and no longer needed the size of space originally requested. Since the space was already locked in by an awarded lease, IRS needed GSA’s help to address this problem.

Thanks to the efforts of Hawaii Area Manager Larry Becker, Lease Contracting Specialist Roy Oshita, and Project Manager Joe Melanson, GSA was successful in canceling the awarded expansion space. Their actions reduced the agency’s rent costs in excess of $550,000 over ten years, in addition to $500,000 in cost avoidance by not having to reconfigure 2,877 square feet.

The IRS management praised GSA for delivering better value and considerable savings for their agency.

“It is this type of action on GSA’s part that I want to ensure we recognize as very valuable to our agency,” said IRS Territory Manager Michelle Treshler. “I appreciate their support in helping us do the right thing!”

Oshita attributed this success to the strong collaboration among all involved parties.

“This was a direct result of strong relationship and trust-building between the lessor, IRS and GSA,” Oshita said. “Without it, this would not have been possible.”

In addition to adding value to the client agency and saving over one million dollars in taxpayer money, GSA’s actions with the IRS Hilo project also supported IRS’ ambitious space reduction initiative, Universal Workspace Design (UWD) and National Space Standards, which seek to significantly reduce IRS’ office space over the next decade.

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