ECONOMIC ANALYSIS OF LEASE VERSUS CONSTRUCTION FOR CIA CONSOLIDATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00244R000200210009-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 21, 2016
• Document Release Date: March 5, 2008
• Sequence Number: 9
• Publication Date: April 8, 1982
• Content Type: REPORT

Approved For Release 2008/03/05: CIA-RDP89-00244R000200210009-3
Economic Analysis of Lease Versus Construction
for CIA Consolidation
OBJECTIVE
The purpose of this analysis is to compare the present value
costs of a least alternative versus federal construction.
ASSUMPTIONS
1. A constructed building will contain approximately
855,000 square feet of net useable space.
2. For the lease alternative, 855,000 net square feet of
consolidated space will be acquired.
3. The economic life of a building or buildings is 30
years.
4. Construction of a new building will be on the
Headquarters compound.
PROCEDURES
1. Cost data have been provided by the Building Planning
Staff, Office of Logistics, and General Services
Administration.
2. The comparative analysis was compiled in accordance with
procedures contained in Office of Management & Budget
(OMB) Circular A-104.
CONCLUSIONS
The results show that the Federal Construction Alternative
is the preferred choice.
Approved For Release 2008/03/05: CIA-RDP89-00244R000200210009-3
 Approved For Release 2008/03/05: CIA-RDP89-00244R000200210009-3
8 .4 APR 1982
CIA CONSOLIDATION
COMPARATIVE COST ANALYSIS SUMMARY
Lease Alternative
Construction Alternative
Initial Alterations
$ 29,533,360
Imputed Taxes & Insurance
$ 15,407,712
Taxes $ Insurance
23,011,016
General Expenses
2,415,381
Net, Net Rent
94,652,269
Services $ Utilities
52,470,348
Services $ Utilities
78,363,095
Major Repair $ Alterations
10,158,808
Alterations
7,745,103
Minor Repair & Alterations
5,185,965
General Expenses
1,697,557
Interim Lease Cost
24,596,980
Site Cost
2,127,850
Total Present Value
$ 235,002,399
Construction Cost
79,418,991
Design & Management
7,583,663
$ 199,365,697
Less Residual Value
12,239,978
Less Income Received
3,776,369
Total Present Value
083,349,349
Approved For Release 2008/03/05: CIA-RDP89-00244R000200210009-3