Federal Real Property: Agencies Make Some Use of Telework in Space Planning but Need Additional Guidance

Federal agencies are exploring ways to use telework as a tool to reduce the federal footprint and use space more efficiently. GAO was asked to examine the effects of telework on agencies' space-planning efforts. In this report, GAO reviewed: (1) how the 23 civilian CFO Act agencies reported using telework in office space planning; (2) the specific ways selected agencies and GSA used telework in their office space planning; and (3) any challenges the civilian CFO Act agencies faced in using telework in office space planning.

GAO surveyed all 23 civilian CFO Act agencies, analyzed each agency's space-planning documents, and Real Property Efficiency Plans . GAO reviewed four agencies in greater detail based on analysis of telework data and other factors. For those four agencies GAO conducted site visits, interviewed officials, and analyzed agency documents. GAO also identified challenges agencies faced in using telework in space planning, based on survey results, agency documents, and interviews.

The 23 civilian Chief Financial Officer (CFO) Act agencies reported various ways of considering and using telework as a space-planning tool, by, for example, implementing desk-sharing for employees who telework in order to relinquish leased space, or increasing the number of staff working in an existing space without increasing its size. All of the 23 agencies discussed telework in the context of space planning and achieving greater space efficiencies in either their space-planning documents or Real Property Efficiency Plans . The agencies that used telework as a space-planning tool generally reported implementing smaller or unassigned workstations.

Three of the four agencies GAO reviewed in greater detail––the General Services Administration (GSA); the Office of Justice Programs at the Department of Justice; the Centers for Disease Control at the Department of Health and Human Services; and the Bureau of the Fiscal Service at the Department of the Treasury––leveraged telework to reduce or use office space more efficiently. For example, GSA and the Office of Justice Programs used telework to accommodate more employees in a smaller office space as illustrated in figure 1 below. The Centers for Disease Control used telework to accommodate more employees in the same amount of space. The Bureau of the Fiscal Service reduced space without telework by reducing the size of individual workstations.

The 23 civilian CFO Act agencies reported several challenges in using telework to reduce space including human capital issues, mission suitability, and measuring cost savings attributable to telework. About two-thirds of the agencies said they would find it helpful to have additional information, assistance, or resources in using telework as a space-planning tool. GSA provides guidance to improve space utilization. However, GAO found that GSA last developed relevant formal guidance in 2006. This information, and that on GSA's telework and space-planning websites, was neither specific nor detailed and therefore of limited assistance to agencies that would like to use telework as a space-planning tool. Additionally, GSA's space-planning tool—the Workplace Investment and Feasibility Tool, intended to help agencies quantify the benefits and costs of telework––remains under development after more than 4 years, and GSA officials have not decided whether to make the tool available to other federal agencies. As such, agencies reported that they lack adequate guidance to determine how best to reduce space or use it more efficiently, and how to assess the benefits and costs of using telework in space planning.

GSA concurred with recommendations that GSA should: (1) develop guidance on how agencies can use telework as a strategic space-planning tool and make this guidance readily available and (2) complete and make the Workplace Investment and Feasibility Tool available to federal agencies for use in assessing the benefits and costs of telework.

The federal government is committed to the goal of reducing its real  property footprint. As part of achieving this goal, the Office of  Management and Budget’s (OMB) Reduce the Footprint Policy requires  that federal agencies explore alternatives to acquiring more office space.  One such alternative is telework, which can be used to reduce the  number of personnel using onsite workspace, thereby reducing  agencies’ space needs while continuing to fulfill missions. Already, nearly  half of all eligible federal employees participate in telework programs.

You asked us to examine the impact of telework on space planning,  including how agencies use telework to reduce space or realize other  benefits. This report addresses:  how the 23 civilian Chief Financial Officers (CFO) Act agencies reported using telework in office space planning; the specific ways selected agencies and the General Services Administration (GSA) used telework in their office space planning; and any challenges the 23 civilian CFO Act agencies faced in using telework in office space planning.

To determine how the civilian CFO Act agencies reported using telework  in office space planning, we surveyed these agencies and analyzed their  responses. We also obtained and analyzed these agencies’ space- planning documents and Real Property Efficiency Plans to identify  common themes and references to telework. To determine the specific  ways agencies included telework in their office space planning, we  selected and reviewed four agencies in greater detail. We selected a non- generalizable sample of three sub-agencies as illustrative case studies  with criteria such as an agency-level goal of using telework to reduce real  estate costs, the rate of telework among employees, and range of size.  The selected sub-agencies include: (1) Bureau of the Fiscal Service  (Fiscal Service)—Department of the Treasury (Treasury); (2) Centers for  Disease Control and Prevention (CDC)—Department of Health and  Human Services (HHS); and (3) Office of Justice Programs (OJP)— Department of Justice (DOJ). We also selected GSA as a comparative  example since it is responsible for providing space-planning guidance to  client agencies and has experience using telework in space planning. For  each of these case studies, we reviewed telework and space-planning  documents; visited seven office locations with recent space reductions in  New York City, Philadelphia, and the Washington, D.C., area; and  interviewed knowledgeable agency officials. Information from these case  studies is not generalizable to the universe of federal agencies.

To identify challenges agencies face in using telework in space planning,  we reviewed agencies’ Real Property Efficiency Plans and analyzed  responses to survey questions. Additionally, we selected two outside  experts and four entities from the private sector for informational  interviews based in part on our literature review and their experience with  telework and the space-planning process. Statements made by  knowledgeable federal officials, outside experts, and private sector  entities are not generalizable to the universe of civilian CFO Act agencies.  Because GSA bears responsibility for government-wide space-planning guidance, we also reviewed and analyzed the guidance it has developed  and available information on its telework and space- planning websites.  We compared GSA’s guidance and website information to relevant  statutory requirements and federal internal controls standards related to  external communication (see app. 1 for additional details on our scope  and methodology).

We conducted this performance audit from January 2017 to March 2018  in accordance with generally accepted government auditing standards.  Those standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained for this review provides a reasonable basis for our  findings and conclusions based on our audit objectives.

Federal Requirements for Implementing Telework and Reducing Space

Implementing Telework: The Telework Enhancement Act of 2010 (the  Act) establishes telework implementation requirements for agencies,  including, for example, that each agency designate a Telework Managing  Officer and that each agency incorporate telework into its continuity of  operations plans. The Act does not mention telework specifically in the  context of space planning. The Act also requires the Office of Personnel  Management (OPM) to assess whether agencies have met agency- established telework outcome goals such as real estate savings.  It also  requires OPM to  submit reports that include executive agencies’ goals for increasing  telework participation to the extent practicable, assist each agency with developing qualitative- and quantitative- teleworking measures and goals, and  track telework eligibility and participation rates across the government.

According to OPM telework information from fiscal year 2012 through  fiscal year 2015, the percentage of federal workers eligible to telework  remained stable at about 45 percent, on average. However, during the  same period, the percentage of eligible employees who participated in  telework increased from 29 percent to 46 percent. Figure 1 shows the  frequency of telework across the federal government from fiscal years  2012 through 2015 by type of telework.

Reducing Space: OMB issued the National Strategy for the Efficient Use  of Real Property and the Reduce the Footprint policy in 2015, which  require all CFO Act agencies to improve the efficiency of real property  use, control costs, and reduce holdings. These OMB initiatives also  required agencies to develop Five-Year Real Property Efficiency Plans annually; develop office space standards that specify maximum square footage  identify reduction targets for office space in square feet; and  freeze the footprint (i.e., not increase square footage of office space).

OMB’s National Strategy noted that employee telework has changed the  dynamic of the federal real property portfolio and resulted in a need for  less space. OMB’s Reduce the Footprint guidance memo states that  agencies’ 5-year plans should include an explanation of actions the  agency is taking to increase space efficiency, including cost-effective  alternatives to acquisition of additional office space, such as  consolidation, colocation, teleworking, and “hoteling.” Federal statute also  requires that agencies consider whether space needs can be met using  alternative workplace arrangements when deciding whether to acquire  new space.

GSA defines mobility as an overarching term describing the ability of  employees, enabled by information technology (IT) and workplace  policies to perform work both within and outside the agency worksite.  Under this definition, mobility includes telework, desk-sharing, site work,  and travel. Agencies can strategically use telework—one form of  mobility—combined with desk-sharing and hoteling to reduce space  needs and increase efficiency. This allows agencies to plan for fewer  workstations than the number of employees. Other space efficiency strategies such as smaller workstations (e.g., reduced space standards),  reconfigured office space (e.g., open-office plans instead of private  offices), and mobile technology (e.g., laptops, Wi-Fi throughout the office,  and smart phones) can be combined with telework and used as planning  tools to reduce office space, use space more efficiently, and potentially  cut costs.

GSA, in a 2010 publication, described a continuum of three different  scenarios for the ways agencies may use mobility, including telework.  These scenarios range from limited mobility not leveraged for space  planning to extensive mobility leveraged for space planning to reduce and  use office space more efficiently:  (1) No space changes: Some employees telework at least 2 scheduled  days per week but retain assigned workstations with no changes to the  existing space configuration.  (2) No space reduction but different space allocation: Most employees  telework at least 2 scheduled days per week and keep assigned  workstations. Workstations are smaller and more densely organized; and  space freed up by smaller workstations can be used for collaborative  work spaces.  (3) Space reduction and different space allocation: Nearly all employees  telework at least 3 scheduled days per week and participate in hoteling  (i.e., unassigned workstations), and workstations are also smaller and  more densely organized. In this scenario, according to GSA, an agency  can redesign its office and potentially reduce space by up to 30 percent.

The key factors in distinguishing these scenarios illustrated in figure 2  below include the:  level of employee participation in telework;  changes to physical office spaces (e.g., smaller and more densely  organized workstations and more emphasis on collaborative  workspaces); and extent to which employees have assigned workstations or participate  in desk-sharing.

GSA Provides Space- Planning Guidance and Assistance to Agencies

Under federal statute, GSA has a role in promulgating rules and  developing guidance promoting the efficient use of real property. For  example, the GSA Administrator may provide guidance, assistance, and  oversight to client agencies regarding the establishment and operation of  alternative workplace arrangements, which include leveraging telework to  reduce space needs. GSA also directly assists client agencies with  identifying and prioritizing opportunities to improve and implement real- property efficiency measures.

Agencies Reported Various Ways of Considering and Using Telework as a Space Planning Tool

In reviewing planning documents, policies, and survey data, we found that  the 23 civilian CFO Act agencies reported using telework to reduce or use  space more efficiently. Specifically, our analysis of (1) agency-wide  space-planning policies and procedures and (2) Real Property Efficiency  Plans found that all of the agencies discussed telework in the context of  space planning and achieving greater space efficiencies. Agencies also  provided examples in survey responses of how they have used telework  to increase operational effectiveness while optimizing their use of space.

Agencies Use Telework in Space Planning, and Most Include It in Their Agency- Wide Policies

Fifteen agencies’ space-planning policies and procedures included  provisions for using telework and other mobility strategies, such as  hoteling and desk-sharing, as a strategic space-planning tool. Three of  the agencies mentioned these strategies only in the context of space  planning, and five agencies did not mention them at all (see table 1).

For the fifteen agencies with space planning policies that incorporated  telework, the documents either expressly directed agency planners to  include telework, hoteling, or desk-sharing in space planning; provided  instructions and guidance for using these in space planning; or issued  space allocation standards for their implementation. Several agency-wide space plans identify space reduction goals based on using telework  strategically. For example, the Department of Transportation (DOT)  documents identify a goal of at least a 10 percent workspace reduction in  new acquisitions as a result of compressed work schedules and telework,  and specifically state that employees who telework six or more days per  pay period should not have a permanent workspace.

Agency-wide space planning documents from three civilian CFO Act  agencies mentioned telework, hoteling or desk-sharing as strategies in  the context of space planning. For example, DOJ’s agency-wide policy  notes that telework and hoteling could increase the efficient use of space  and directs each sub-agency to maintain its own space design guidelines  within agency-wide policy office space standards. The other two  agencies, the Department of State and the Nuclear Regulatory  Commission, either had a short provisional agency-wide space planning  document that laid out space standards or mentioned telework, hoteling  and desk-sharing as a tool for creating sustainable space. Five agencies’  space planning documents made no reference to telework; however, one  agency, OPM, developed a maximum office space utilization rate and  criteria for determining which positions require a private office.

Real Property Efficiency Plans Provide Information on Agencies’ Efforts to Use Telework

As noted above, OMB’s Reduce the Footprint policy (2015) requires  agencies to establish Real Property Efficiency Plans. In our analysis of  the agencies’ fiscal year 2016 or 2017 plans, we found that 19 of the 23  civilian CFO Act agencies discussed telework in the context of space  planning. A few agencies’ Real Property Efficiency Plans explicitly  stated that the agency reduced space as a result of telework. For  example, GSA used telework to reduce space in its Heartland, Rocky  Mountain, and National Capital Region offices.

Some (5 of 23) Real Property Efficiency Plans discussed the telework  pilot programs agencies have initiated. For example, the Department of  Education’s plans reported using a pilot program to acclimate employees  to teleworking and desk-sharing; as a result, the agency intends to  incorporate hoteling or space-sharing opportunities into proposed space  designs in future projects. The Social Security Administration (SSA) plans  also reported initiating a pilot program to experiment with smaller  “hoteling” workspaces. Similarly, the Nuclear Regulatory Commission’s  plan reported conducting a pilot program at its headquarters offices to  identify challenges, better understand telework, and evaluate the potential  of shared workspaces.

Agencies Reported Using Telework to Reduce Space and Achieve Space Efficiencies

In response to our survey, about three-quarters of agencies reported  space-planning policies that use telework to reduce office space, lower  real estate costs, or reduce the size of individual workstations. Agencies  reported accomplishing this by using desk-sharing and hoteling for  employees who have relinquished permanent workspaces. For example,  several agencies discussed strategies to reduce space in their responses  to our survey.

The Department of Labor reported using telework to close some small  offices resulting in overall space reductions of about 16,000 square  feet.

OPM reported that it both reduced space and created space  efficiencies by transitioning staff in its Eastern Management  Development Center to full-time telework and terminating the lease,  resulting in a space reduction of about 32,000 square feet. OPM’s  Human Resource Solutions Program also achieved a 47 percent  space reduction when it instituted desk-sharing and freed the vacated  space for use by another program office.

The Department of the Treasury reported that its sub-agency, the  Internal Revenue Service, has aggressively used telework to help  reduce its real property portfolio, while other Treasury units have  leveraged telework to achieve significant space reductions. At the end  of fiscal year 2016, Treasury reported agency-wide reductions of  about 484,000 square feet at a cost savings of about $10 million.

Two agencies––Department of Homeland Security, and the National  Science Foundation––reported using telework to increase the efficiency  of existing office space in sub-agencies by increasing staff without  increasing the size of offices, for example:

The Department of Homeland Security reported that one of its sub- agencies used telework in the planning and design of a new office,  resulting in both a space reduction and more efficient use of the  space. The new office is 57,573 square feet smaller than the prior  office while personnel assigned to the office increased from 315 to  394.

The National Science Foundation reported that it used teleworking,  among other workspace strategies such as new space standards and  virtual technologies, to increase staff numbers without increasing its  real estate footprint.

Three of the Four Agencies We Reviewed in Depth Leveraged Telework to Reduce or Use Office Space More Efficiently

Among the agencies we reviewed in detail—GSA, OJP, CDC, and the  Fiscal Service—the use of telework in office space planning varied from  emerging consideration to extensive implementation. GSA and OJP  have used telework extensively to both reduce space and increase space  efficiency in their office spaces. CDC has leveraged telework to reduce  space or use space more efficiently in more limited cases while the Fiscal  Service has begun to consider telework in future space planning.  Appendix II provides additional details on office spaces where these  agencies reduced space or used space more efficiently, including the role  of telework, if any.

GSA Used Telework Extensively as a Space- Planning Tool

GSA has leveraged telework to reduce space by implementing  unassigned workstations in nearly all of its regional and headquarters  offices, along with other forms of “employee mobility,” complementary  IT, and smaller space standards. GSA adopted telework as early as 1999  and by fiscal year 2015, more than 90 percent of all eligible GSA  employees teleworked, and nearly half of all employees teleworked 3 or  more days per pay period, according to OPM data. GSA’s space policy  cites desk-sharing (e.g., hoteling, “hot-desking,” or other arrangements)  as one strategy to help meet its space standard of 136 useable square  feet (USF) per person. GSA employees may telework full-time, but may  be required to give up dedicated workstations if they are on site 2 or  fewer days per week.

GSA has gradually transitioned to unassigned workstations at  headquarters and in its regional offices, allowing the agency to implement  desk-sharing and calculate space needs at less than one desk per  employee. The agency also assigned laptops and mobile or soft phones  to employees to further maximize mobility. The three GSA sites we visited  used space-planning strategies to achieve, or nearly achieve, GSA’s  space standard of 136 USF per person. For example, at its Philadelphia  Regional Office, GSA leveraged existing telework levels to meet reduced  space standards and move to a smaller leased space by accommodating  about 600 employees in fewer than 500 workstations. According to GSA,  this allowed the office to achieve a utilization rate of 139 USF per person  and realize a reported annual rent cost savings of about $2 million.  Similarly, at its New York Regional Office, GSA also leveraged existing  telework levels to meet reduced space standards and move to a smaller  leased space. This step allowed the office to achieve a utilization rate of  119 USF per person and realize a reported total rent cost savings of  nearly $11 million.

GSA also leveraged telework as part of its headquarters consolidation.  GSA reports that it was able to move approximately 1,000 additional  employees to the headquarters building by implementing a hoteling  system and planning for less than one workstation per employee. This  allowed GSA to achieve a utilization rate of 138 USF per person at its  headquarters and realize a reported annual rent-cost savings of  approximately $24 million.

OJP Leveraged Telework to Consolidate Its Offices

Similar to GSA, OJP used telework, along with complementary tools, to  reduce space and use space more efficiently at its consolidated office.  More than 90 percent of eligible employees teleworked in fiscal year  2015, and nearly half of all employees teleworked 3 or more days per pay  period, according to OPM data. More recently, OJP reported that around  70 percent of its employees teleworked in August 2017, with just less  than 40 percent doing so three or more days per pay period. At the  departmental level, DOJ’s plans to improve space utilization include  reduced space requirements, and, in some cases, alternative workplace  strategies. DOJ’s space utilization policy mentions telework with  hoteling as one way to increase efficient use of space, and DOJ’s  telework policy mentions the potential of telework to create cost savings  by decreasing space needs. While most OJP employees are eligible to  telework, a few federal staff occupying administrative positions are not  eligible.

OJP took the opportunity to examine and improve its space use as three  of its leases approached expiration in 2013. It leased space in two  adjacent buildings under three separate leases. OJP worked with GSA to  analyze space-planning options, contracting a study of the office that  recommended ways to improve space utilization. This study included a  survey of all employees, a complete physical space survey, and  interviews with leadership. The results of this study not only indicated  OJP employees’ openness to more mobility but also that they had  concerns such as loss of privacy and social connectedness. For example,  more than 80 percent of survey respondents said they could work off-site  more often with proper tools and support, and almost half said they would give up dedicated space to work remotely more often. Furthermore,  interviews with the leadership of several OJP units indicated a willingness  to support increased mobility but also a need to maintain privacy and  improve mobile IT. According to OJP, it alleviated these concerns by  encouraging participation in the planning process, highlighting  opportunities for positive changes, and maintaining open communication  (e.g., communicating changes and expected benefits).

Based on the analysis of space-planning options, OJP retained one of the  three previous leases and leveraged telework to accommodate all  employees into less space overall in one building. OJP achieved this  objective by targeting 25 percent employee mobility and implementing  hoteling. Concurrently, OJP officials explained that they introduced  smaller workstations and used tenant-improvement allowance funds to  reconfigure space for more flexible use. Physical reconfigurations  included changing hard-walled office spaces with dedicated workstations  to a primarily open office with few walls or dedicated workstations.

According to OJP, it complemented these changes with investments in  mobile IT for individual employees, improved IT capabilities in conference  rooms and other collaborative spaces, and an emphasis on training  employees to work well in a mobile office environment. For example, OJP  officials said they installed Wi-Fi throughout the space, issued laptops  and smart phones to employees, upgraded video-conferencing  capabilities in conference rooms and collaborative spaces, and expanded  tools for informal employee communication. According to OJP officials,  through the consolidation, they said they achieved a utilization rate of 190  USF per person—a decrease of 30 USF per person from the prior 220  utilization rate. This rate remained higher than DOJ’s overall target and  housed the same total number of employees—about 1,000—in about  50,000 fewer USF. OJP reports that the consolidation resulted in an  estimated $3 million annual lease- cost savings. OJP also estimates  additional savings from reduced transit subsidies, carbon emissions, and  continuity of operations.

CDC Used Telework to Achieve Space Efficiencies in Limited Cases

Relative to GSA and OJP, CDC has made more limited use of telework in  office space-planning. CDC officials told us that they have leveraged  telework as a space-planning tool in many locations, but they have only  documented doing so in one case. HHS expects each sub-agency to  comply with its 170 USF per-person utilization-rate policy, and this policy  suggests that planned space reductions should take telework into  account. As a component of HHS, CDC has its own space policy, which  states that telework, desk-sharing, and hoteling can help CDC’s units  meet HHS’s utilization rate policy of 170 USF per person. CDC’s telework  policy requires employees who telework frequently to agree to participate  in desk-sharing, but according to CDC officials, how and to what extent  this portion of the broader policy is implemented is up to the discretion of  management. CDC officials cited two limitations to further implementing  space sharing techniques: (1) the large number of employees’ who may  be unable to telework on certain days based upon their job  responsibilities and (2) the voluntary nature of telework. Some CDC  employees cannot work off-site at least some of the time due to  confidential data or lab-based work. Approximately 60 percent of eligible  CDC employees teleworked in fiscal year 2015 and about one-quarter of  all employees teleworked 3 or more days per pay period, according to  OPM data. CDC officials told us that telework participation ranges from 49  to 86 percent across CDC units.

CDC’s National Center for Chronic Disease Prevention and Health  Promotion’s office in Chamblee, GA, provides the most clearly  documented case of CDC’s leveraging telework for space efficiency.  According to CDC officials, this unit accommodated more than 300  additional employees within its existing space by implementing hoteling  for employees who telework 4 or more days per pay period, and it  continues to use hoteling as part of its space management strategy. In  contrast, CDC’s National Center for Health Statistics’ (NCHS) office in  Hyattsville, MD, reduced space without leveraging telework by  reconfiguring the space with smaller, soft-walled workstations.

CDC officials told us that NCHS reduced its office space from seven  floors to three and three-quarters floors, resulting in a reported space  reduction of more than 40 percent and allowing it to achieve a 170 USF  per person utilization rate. CDC officials reported that this space reduction  resulted in annual rent cost savings of approximately $1 million. Hoteling  was not feasible at this location because work on confidential data limits  the ability of employees to work off-site, and NCHS employees also  prefer dedicated workstations. CDC officials said that there is limited  documentation of any additional cases of CDC’s leveraging telework as a  space- planning tool because, prior to our review, there had been no  formal request to connect telework and space utilization data.

The Fiscal Service Has Reduced Space without Leveraging Telework

In contrast to GSA, OJP, and CDC, telework as a space-planning tool is  an emerging consideration at the Fiscal Service. At the departmental  level, Treasury has space standards that aim for efficient and effective  offices that use increased telework and shared workstations to minimize  the number of dedicated workstations. Similarly, objectives of the Fiscal  Service telework policy include cost savings from reduced office space  needs. Treasury’s space standards specify a planned maximum utilization  rate of 200 USF per person for facilities with general office space, and the  Fiscal Service reported that its average office space-utilization rate was  183 USF per person at the time of our review. Treasury policy also  recommends hoteling for employees who are out of the office 80 or more  hours per month, but the Fiscal Service told us that it would like to  conduct additional desk-sharing pilots to assess their impact before  negotiating broader desk-sharing with the union. At the Fiscal Service,  approximately 80 percent of eligible employees teleworked in fiscal year  2015, and about one-quarter of all employees teleworked 3 or more days  per pay period, according to OPM data. The Fiscal Service reported that  approximately 80 percent of Fiscal Service employees telework at its  Washington, D.C., Maryland, and West Virginia locations.

At the time of our review, the Fiscal Service officials said the agency had  reduced space without leveraging telework or implementing hoteling,  instead relying on smaller space standards (i.e., fewer square feet per  workstation) to lease smaller offices. For example, the Fiscal Service  reduced space by giving up several floors at its Hyattsville, MD, office  starting in 2012. According to Fiscal Service officials, they accomplished  these reductions by consolidating data centers to other locations,  conducting targeted buyouts of employees, and, most recently, by  implementing a new space standard of 183 USF per person through  smaller workstations. The officials said that the most recent space  reduction at this location resulted in savings in annual rent costs not  attributable to telework. Looking forward, the Fiscal Service reported that  it has started taking preliminary steps to promote efficient space utilization  through telework. These steps have included:  creating an Executive Space Management Council that discussed  incorporating telework and desk-sharing into space management  guidelines;  implementing a voluntary, informal desk-sharing pilot in one program  area for employees who already telework 50 percent or more of the  time; and  seeking information from GSA, including discussing and visiting GSA  offices that have implemented hoteling as part of their space planning  model.

In addition, the Fiscal Service officials told us that the agency plans to  negotiate the impact and implementation of desk-sharing and hoteling for  telework employees with its union, but the Fiscal Service has not yet  begun this effort.

Agencies Face Several Planning Challenges in Using Telework to Reduce Space

Our analysis of the survey responses from the 23 civilian CFO Act  agencies identified three major planning challenges agencies face with  using telework to reduce space: human capital issues such as negotiating workspace changes with  collective bargaining units and managing organizational change;  the suitability of telework to mission work requirements; and difficulty measuring cost savings that might result from space  reductions attributable to telework.

This measuring difficulty may include both gross savings as well as  savings net of costs, such as for renovations or IT investments. See table  3 for examples of space-planning challenges related to telework reported  by the 23 agencies.

To address these challenges, nearly two thirds of the agencies we  surveyed reported they would like guidance on using telework programs  or other alternatives to meet the federal goals of reducing space or using  space more efficiently.

Challenges to Telework as an Office-Space-Planning Tool Include Human Capital and Mission Suitability Issues

Our review of agency survey responses, Real Property Efficiency Plans,  and other agency space-planning documents, found that human capital  challenges to using telework in space planning generally fell into two  categories: (1) requirements to negotiate space allocation changes with  collective-bargaining units; and (2) managing department workforces in  adapting to new workspace designs and altered workspace allocations.

Collective-bargaining challenges: Of the 23 civilian CFO Act agencies,  7 of 23 noted that changes to telework policy or workspace  arrangements required negotiation with collective bargaining units,  for example,

The Small Business Administration (SBA) reported its greatest  challenge to incorporating telework in office space planning has  been with negotiating and securing agreement from all parties,  including management and its union, on establishing space  standards.

HUD reported that it could not implement hoteling or desk-sharing  as its collective-bargaining agreements require that each  employee retain an assigned workstation regardless of an  employee’s type of telework agreement.

SSA reported that changing floor plans required negotiation with  its three collective-bargaining units, which could extend the time  needed for construction and relocation.

DOT reported that collective-bargaining agreements posed a  challenge to incorporating workforce mobility options, including  telework.

In addition, the collective-bargaining agreements we reviewed from the  four agencies we reviewed in detail––GSA, OJP, CDC and Fiscal  Service––required negotiations or the opportunity to negotiate changes to  matters relating to workspace arrangements and in some cases, to  telework policy.

Managing change: Using telework as a strategic space-planning tool,  particularly in conjunction with complementary space-saving efforts  such as desk-sharing, hoteling, or open-space designs, generally  involves a cultural change. Nine of the 23 agencies we surveyed  reported challenges associated with managing change. For  example, three agencies reported employees’ discomfort or  apprehension about desk-sharing and hoteling. In 2013, we reported  that organizations may also encounter concerns from agency leaders,  managers, employees, or employee organizations when introducing  physical space changes associated with increased workforce mobility  (telework). More recently, we reported that management concerns  remain the most frequently reported barrier to expanding telework.

Two private sector experts we met with underscored the importance  of management “buy-in” saying it was imperative that senior  executives fully support the initiative to facilitate the necessary cultural  change for agencies to use telework in space planning. One noted  that management needed to make the business case to employees so  that each layer of the organization could understand the importance of  the initiative and its potential benefits. Another suggested a change  management plan tailored to the work performed within a unit. This  individual said that key components of such a plan might include  studying existing work practices and program requirements, surveying  employee preferences, and including employees in the planning  process. Further, a GSA document circulated in response to the  Telework Enhancement Act of 2010 mentions obtaining supervisory  “buy-in” or support as key to facilitating change.

According to survey responses, within agencies there are sub-agencies  that have individual mission requirements that may or may not be suitable  for telework. This makes it difficult for agencies to implement overarching  telework and space planning policies that apply department-wide. Sub- agencies and units within sub-agencies must individually determine if  telework is appropriate given their particular mission requirements. For  example, the Veterans Administration reported that although it developed  an agency-wide telework policy, each sub-agency and supervisor has the  flexibility to implement telework based on operational needs. Moreover,  because the agency’s core mission involves direct services to veterans,  about 83 percent of agency staff positions are not suitable for telework.  The Telework Enhancement Act of 2010 outlines two broad exceptions to  telework participation for employees: (1) directly handling secure  materials determined to be inappropriate for telework by the agency head  and (2) on-site activity that cannot be handled remotely or at an  alternative worksite. In cases where telework does not support an  agency’s mission or where a particular mission may require increases or  decreases in personnel, telework as a strategic space-planning tool may  not work.

Agencies Face Challenges in Measuring the Effect of Telework on Reducing Office Space

About half (12 of 23) of the agencies we surveyed reported that office  space reductions resulting from using telework in space planning led to  real estate cost savings while the other half reported either that cost  savings did not result or they did not know. GSA officials told us that  calculating cost savings attributable to a particular aspect of space  planning is complicated as several factors contribute to savings. In  particular, in survey responses, the Departments of Education, Energy,  and Agriculture reiterated this point.

OMB’s National Strategy for the Efficient Use of Real Property and its  Reduce the Footprint policy encourage agencies to increase and  maximize efficiencies in office space by implementing cost-effective  strategies such as telework. For example, the National Strategy outlines a  framework that aims to measure real property costs and utilization to  improve the efficient use of federal real property. The Reduce the  Footprint policy requires agencies to measure cost savings that result  from reducing space through disposals. However, neither document  offers guidance or methodologies on how to measure the costs or savings  that may result from using telework. We previously reported that GSA  works with client agencies to develop tools to measure office space  utilization and, in 2013, was developing an Excel-based tool to help  agencies quantify the benefits and costs of using telework to achieve  greater office space efficiencies. This tool—the Workplace Investment  and Feasibility Tool—is aimed at helping agencies quantify the benefits  and costs of increased telework participation and implementing other  alternative-work arrangements. When completed, the tool will enable  users to quickly develop rough estimates of cost and space impacts  resulting from workplace changes, particularly relating to desk-sharing,  workspace reconfiguration, and consolidation. Key features include the  ability to compare up to three scenarios, which in turn may be used to  inform a more detailed design program.

As of January 2018, GSA had not yet completed the tool. GSA officials  said mission needs, resource constraints, and developmental  adjustments have contributed to delays in the time frame for completing  the tool. They added that during this time, GSA has diverted resources to  space calculation tools for individual agencies. For example, GSA worked  with DHS on its Space Calculation Tool as a way to help determine  workplace space requirements in a manner consistent with DHS space  policies. In January 2018, GSA officials told us that they plan to make the  Workplace Investment and Feasibility Tool available to GSA staff in  March 2018 along with training on how to use it. However, GSA officials  have not decided whether to make the tool available to other federal  agencies to use as a space-planning tool. Instead, the officials plan to  assess GSA’s use of the tool and then determine in late 2018 if and how  it should be released to other agencies for independent use. Given the  absence of a government-wide tool, in our review, we found that some  agencies had used their own resources to purchase similar tools for their  space-planning needs from the private sector. Without such a  government-wide resource, agencies may not be able to determine how  best to reduce space or use it more efficiently.

GSA Guidance Does Not Specifically Address How to Use Telework in Space Planning

In responses to our survey, nearly two-thirds of agencies reported that  they would find it helpful to have additional information, assistance, or  resources to assist them in using telework as a space-planning tool. As  noted above, a key element of GSA’s mission is to provide guidance and  services that enable agencies to improve space utilization, reduce costs,  and better achieve their missions. Moreover, under federal statute, GSA  may provide guidance to executive agencies on the implementation of  alternative workplace arrangements, which includes telework. Federal  standards for internal control also call for agencies to communicate  necessary quality information such as guidance with external parties.

In reviewing GSA’s websites, we found that GSA last developed formal  guidance on alternative workplace arrangements in 2006 and maintains  several separate informational websites on implementing telework and  optimizing space utilization. Our review of this guidance and these  websites found that they do not provide specific guidance for using  telework as a strategic space-planning tool. For example, the 2006  guidance is generally limited to defining the factors agency heads must  contemplate when considering alternative workplace arrangements along  with the equipment and technical services agencies may provide for  alternative worksites. However, this guidance does not address in detail  the impact of such arrangements on agency office space and resulting  planning issues. Similarly, our review of GSA’s teleworking and space- planning websites found that although they separately offered  documented case studies along with information such as tips for  implementing telework and managing a mobile workforce, GSA did not  provide documents consolidating the concept of using telework as a  strategic space-planning tool. For example, information on GSA’s Total  Workplace Program website––intended to assist agencies in using  workforce mobility (including telework) to increase space efficiencies––is  generally limited. Although this website includes high-level information  that describes the potential benefits of using telework with office space  planning and design, it lacks a practical outline of the process agencies  might use to achieve them. Because the information in the 2006 guidance  and the telework and space-planning websites is neither specific nor  detailed, it is of limited assistance for agencies that would like to use  telework as a strategic space-planning tool to meet the goals of a more  efficient use of space.

While using telework to reduce space is not a new challenge, it has  become more pressing with OMB’s requirement for federal agencies to  explore alternatives to acquiring more office space. Most civilian CFO Act  agencies reported having a telework program in place and some reported  success with using it in space planning to reduce space or accommodate  more employees without increasing space. However, many of the  agencies continue to face challenges and do not believe that they have  adequate information, assistance, or resources to assist them in using  telework as a space-planning tool or assess its costs and benefits. Until  agencies have access to detailed guidance and tools to help utilize  various space-planning options, they may not be able to effectively  identify opportunities to use telework toward the goal of reducing their real  property footprint.

We are making the following two recommendations to GSA:  The Administrator of General Services should ensure that the appropriate  GSA offices develop guidance including, but not limited to, how agencies  can use telework as a strategic space-planning tool for reducing and  optimizing office space efficiency and that the offices make the guidance  readily available. (Recommendation 1)

The Administrator of General Services should ensure the appropriate  GSA offices complete the Workplace Investment and Feasibility Tool and  make it available to federal agencies for use in assessing the benefits and  costs of telework to achieve office space efficiencies. (Recommendation  2)

We provided a draft of this report to GSA, the Department of Justice, the  Department of Health and Human Services, and the Department of the  Treasury. In its written comments, reproduced in Appendix III, GSA  concurred with our recommendations and stated that it is developing a  plan to address them. We received technical comments from the  Department of Justice and the Department of Health and Human  Services, which we incorporated where appropriate. The Department of  the Treasury did not have comments on our draft report.

We are sending copies of this report to the appropriate congressional  committees; the Administrator of GSA; and the Secretaries of the  Department of Health and Human Services and Department of the  Treasury, and the Attorney General of the Department of Justice. In  addition, the report will be available at no charge on the GAO website at  http://www.gao.gov. If you or your staff has any questions concerning this  report, please contact me at (202) 512-2834 or rectanusl@gao.gov.  Contact points for our Offices of Congressional Relations and Public   Affairs may be found on the last page of this report. GAO staff that made  key contributions to this report is listed in appendix III.

Appendix I: Objectives, Scope, and Methodology

This report addresses: (1) how the 23 civilian Chief Financial Officer  (CFO) Act agencies reported using telework in office space planning; (2)  the specific ways selected agencies and GSA used telework in their office  space planning; and (3) any challenges the 23 civilian CFO Act agencies  faced in using telework in office space planning.

To determine how the 23 civilian CFO Act agencies reported using  telework in office space planning, we surveyed the agencies. The survey  asked questions about agency-wide efforts to use telework in the human- capital and space-planning areas; whether agencies had achieved any  cost savings as a result; the challenges agencies faced in using telework  in space planning; and asked agencies to identify additional information,  resources, or guidance that might be helpful. In addition to the survey  questions, we asked each agency real property officer to provide copies  of agency-wide space-planning documents and the Real Property  Efficiency Plans agencies prepared for fiscal years 2016 and 2017  pursuant to the requirements of the Office of Management and Budget’s  (OMB) Reduce the Footprint policy. We developed survey questions  based on our review of the relevant literature, white papers from federal  agencies and private sector entities, and past GAO reports. We pre- tested the survey instrument with three federal agencies to ascertain: (1)  the clarity of survey questions; (2) the precision of language; and 3) the  availability of information queried. As a result of the pre-tests we made  changes to the content and format of the survey where appropriate.

We received survey responses from each of the 23 civilian CFO Act  agencies in addition to requested space-planning documents and Real  Property Efficiency Plans, and thus achieved a 100 percent response  rate. We analyzed survey results by calculating the frequency of  responses to dichotomous questions (i.e., questions requiring a “yes” or  “no” answer). We also conducted a content analysis on the open-ended,  narrative-based questions by identifying common themes and tabulating  results. We also conducted a content analysis to determine the extent to  which agencies referenced telework in their agency-wide space-planning  documents and in their Real Property Efficiency Plans. To accomplish  these analyses, we developed separate coding schemes for each of the  two types of documents. These were based on information obtained in  our literature review, interviews with subject matter experts, and our  professional judgment. We then identified relevant sections and common  themes, and coded and tabulated the results. To validate the coding  results, we used a second, independent coder.

To determine the specific ways agencies include telework in their office  space planning, we selected a non-generalizable sample of three CFO  Act agency sub-agencies as illustrative case studies. To select sub- agencies, we analyzed data from the Office of Personnel Management’s  (OPM) Public Use 2014-2015 Telework Data call.  First, we applied two  selection criteria: (1) agency-wide progress toward a stated goal of using  telework to reduce real estate costs, and (2) agency-reported data  indicating that more than 25 percent of sub-agency employees  teleworked 3 or more days per pay period. Next, we considered variations  in sub-agency size and percentage of employees eligible to telework.  Finally, we excluded candidates that had recently been selected for  related GAO work and we excluded sub-agencies related to agency  administration such as Offices of Inspector General or Secretary-level  offices. We assessed the reliability of the OPM’s data by interviews with  knowledgeable officials and by reviewing prior assessments of the same  data, and we found the data reliable for our purposes.

As a result of this process, we selected (1) the Department of the  Treasury’s Bureau of the Fiscal Service (Fiscal Service); (2) the  Department of Health and Human Services’ (HHS) Centers for Disease  Control and Prevention (CDC); and (3) the Department of Justice’s Office  of Justice Programs (OJP). For each of the selected agencies, we  interviewed agency officials and reviewed their telework and space- planning documents. We also visited four sub-agency office locations to  determine if and how telework played a role in any space reductions or  efficiencies along with any associated cost savings. In addition to these  three sub-agencies, we used the General Services Administration (GSA)  as a comparative example since it is responsible for providing space- planning guidance to client agencies and has experience using telework  in space planning. We interviewed GSA officials, reviewed relevant  documents, and visited three GSA office locations with recent space  reductions or efficiencies. In total, we conducted seven site visits  including two Fiscal Service locations, one location each for CDC and  OJP, and three GSA locations (National Headquarters, Region 2 Office,  and Region 3 Office) in Washington, D.C.; New York City; and  Philadelphia, respectively.

To identify any challenges the 23 civilian CFO Act agencies faced in  using telework in office space planning, we analyzed results from survey  questions addressed to challenges, interviewed sub-agency and GSA  officials as detailed above, interviewed two private sector subject matter  experts, and representatives from four private-sector entities that had  reported using telework to reduce and use office space more efficiently.  Statements made by knowledgeable federal officials, outside experts and  private sector entities are not generalizable to the universe of civilian CFO  Act agencies. We also analyzed the section of each of the 23 civilian CFO  Act agencies’ Real Property Efficiency Plans devoted to challenges  agency face in reducing space. We selected the two subject matter  experts––representatives from Global Workplace Analytics and Fentress  Facility Planning and Analytics––based on: (1) their experience working  with federal agencies to incorporate telework programs into the space  planning process; (2) information compiled in our literature review; (3)  prior GAO reports; (4) internal GAO recommendations; and (5) industry  recommendations. We selected the four private sector entities (AT&T,  Deloitte, Adobe, and CapitalOne) based on our literature review,  recommendations from industry experts, and reports of having achieved  space efficiencies including space reduction, cost savings, or cost  avoidance(s).

To identify what guidance or information on using telework as a space- planning tool GSA makes available through its website, we reviewed the  contents of multiple GSA websites including Telework, Total Workplace,  Alternative Work, and GSA Telework Resources. We followed links and  reviewed webpage contents for information on how agencies might use  telework as a strategic tool to reduce space or use space more efficiently.  We compared GSA’s guidance and website information to relevant  statutory requirements and federal internal controls standards related to  external communication.

We conducted this performance audit from January 2017 to March 2018  in accordance with generally accepted government auditing standards.  Those standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.

Appendix II: Selected Agency Case Study Profiles

Appendix III: Comments from the General Services Administration

Appendix IV: GAO Contact and Staff Acknowledgments

In addition to the contact named above, David J. Wise (Director); Amelia  Bates Shachoy (Assistant Director); Lindsay Bach (Analyst-in-Charge);  Geoff Hamilton; Malika Rice; Kelly Rubin; Shelia Thorpe; Elise Vaughan  Winfrey; and Amelia Michelle Weathers made key contributions to this  report.