TSA Lease Was Voided to Block ‘Ill-Gotten Gain’

A newly released order by Judge Charles Lettow provides some details on the federal judge’s decision to void the Transportation Security Administration’s lease for a new HQ at Victory Center in Alexandria.

Lettow issued his order after a protest from rival bidder Boston Properties, which claimed that the General Services Administration improperly favored the property at 5001 Eisenhower Ave over a Boston Properties site near the Franconia-Springfield Metro station. The order indicates that the GSA knowingly leased more space than Congress authorized, but had hoped to insulate itself from a protest overturning the decision, the Washington Business Journal reports. Both the House and Senate had authorized a lease for up to 625k SF, far less than the 665k SF lease that was signed at Victory Center.

"Despite foreseeing a protest, GSA chose to execute the lease with Victory Center. GSA now argues that its decision cannot be undone. If the court were to accept this argument, it would mean that GSA could immunize itself from post-award injunctive relief by signing flawed contracts and then claiming in court that the awards cannot be vacated. It would be inequitable to permit the government to 'preserve its ill-gotten gain' in such a manner," Lettow wrote in his order.

The highly unexpected ruling was handed down on Nov. 11. The order is dated Nov. 25 and was released after parties to the lease and the federal government agreed to a series of redactions, mainly involving pricing and square footage. [WBJ]

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