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After TSA Lease Voided, Bidders Looking For A Second Chance

The TSA's current HQ in Pentagon City

After a federal judge voided the lease for a TSA HQ in Alexandria last year, bids for a new contract are due to the GSA in just a few weeks, and some of the areas major real estate power players are still competing.

Boston Properties, which successfully protested GSA's awarding of the lease to Prudential Real Estate Investors, is now competing for the new lease. Its site in Springfield was the runner-up in the GSA's consideration for the original bid, out of four offers. 

"It is our intent to compete to the best extent we can and hopefully prevail," Boston Properties senior vice president Ray Ritchey tells Bisnow

Prudential is also likely competing to win the contract, with representation from JLL, after the GSA initially picked its Alexandria site for the HQ but the lease was voided by a federal judge because the GSA signed a 665k SF lease after stating a previous maximum of 625k SF for bids.

In addition, JBG—at Hoffman Town Center—and Vornado are likely to submit offers to the GSA, a source with knowledge of the process says. 

The GSA has not set an official final due date for proposals, but contracting officer Mark Stadsklev tells Bisnow he anticipates the deadline will be late July to early August.

Last August, the GSA announced it had awarded the lease to Prudential to move the TSA HQ to Victory Center, a vacant office building at 5001 Eisenhower Ave

Then, in November federal judge Charles Lettow voided the lease, ruling that the GSA unlawfully favored the Victory Center property over Boston Properties' site.

The GSA was initially looking to move the TSA into a new HQ in 2018 after its current lease expired, but after the judge voided the new lease, the GSA in April announced it was delaying the TSA's move until 2020.