Harrisburg, PA – The Pennsylvania Department of General Services (DGS) announced today that the National Association of State Chief Administrators has selected the Shapiro Administration’s Space Optimization and Utilization Project (SOUP), as the recipient of the 2026 Innovation in State Government Award for Facilities and Real Estate Optimization. The Innovation in State Government Awards recognize state administration programs, projects, and initiatives that demonstrate leading practices and deliver measurable results.
Under the leadership of Governor Josh Shapiro, DGS launched SOUP to reduce unnecessary lease costs, make better use of existing Commonwealth facilities, and modernize workplaces so agencies can better serve Pennsylvanians. Since 2023, the program has generated $23.6 million in lease cost savings and reduced the Commonwealth’s leased office footprint by more than 639,000 square feet through June 2026.
“This award belongs to the people who did the work,” said Acting DGS Secretary Sandra Aguilera. “Our teams listened to agencies and employees. They planned difficult moves with care. They solved problems and kept services running. I am proud of them, and I thank NASCA for recognizing their work.”
SOUP began with the Commonwealth’s first comprehensive review of more than 13 million square feet owned and leased office space. The review brought together information that had previously been considered separately, including how space was being used, where employees were working, when leases were scheduled to expire, and where renovations or relocations created opportunities to act. DGS then leverages that information to manage the Commonwealth’s full office portfolio rather than reviewing one agency or one lease at a time. Projects are often timed around lease expirations, relocations, renovation cycles, and other natural transition points, allowing the Commonwealth to reduce costs without creating unnecessary disruption.
DGS measures SOUP’s success by tracking how much each project saves or avoids in lease costs and how much leased space the Commonwealth eliminates or reduces. Those savings and reductions come from ending or reducing leases, renegotiating master leases, co-locating agencies, and meeting more space needs within facilities the Commonwealth already occupies.
“SOUP gives us one clear process for managing Commonwealth real estate as a portfolio,” said Cathy Califano, Deputy Secretary for Administration and Real Estate Services. “We look at how space is being used, what leases are coming due, and where existing facilities can meet the need. Then we work with agencies to carry out the move and measure the results. That approach is saving money, reducing square footage, and helping us make better decisions year after year.”
The program also established common workplace standards for flexible space, shared private areas, collaboration and focus zones, furniture, reservation technology, and accessibility. These standards help projects move more quickly while still allowing DGS to respond to the needs of the agencies and employees who will use each space. DGS uses town halls, design workshops, workspace walkthroughs, and detailed relocation planning to understand how agencies work and address concerns before employees move.
As a result, SOUP has changed the starting point for Commonwealth real estate decisions — instead of asking how much space an agency has historically occupied, DGS asks what space is needed, where it is needed, and how it can be provided at the lowest responsible long-term cost.
Receiving national recognition from NASCA reflects the Shapiro Administration’s continued focus on delivering real results and improving government efficiency, while saving taxpayer dollars.
Read NASCA’s announcement about the 2026 Innovation in State Government Award.
Learn more about the Space Optimization and Utilization Project.
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