ECONOMIC ANALYSIS OF LEASE VERSUS CONSTRUCTION FOR CIA CONSOLIDATION

Document Type: 
Collection: 
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
Case Number: 
Publication Date: 
April 8, 1982
Content Type: 
REPORT
File: 
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PDF icon CIA-RDP89-00244R000200210009-3.pdf51.94 KB
Body: 
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