1 GSA Public Buildings Service Leased Space May
1 GSA Public Buildings Service Leased Space
May 2013 LEASE PROCESS & LEASE REFORM OVERVIEW R 4 Leasing Division, 4 PR 77 Forsyth Street, SW Atlanta, GA 30303 404. 562. 2753 www. gsa. gov/leasing
3 GSA Public Buildings Service Lease Process REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
4 GSA Public Buildings Service Requirements Development REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
5 GSA Public Buildings Service Space Request • r 4 spacerequest@gsa. gov • Standard Form 81 or other approved communication • Acknowledge upon receipt REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
6 GSA Public Buildings Service GSA Point of Contact • Assigned to Lease Contracting Officer (LCO)/Specialist (LCS) or Project Manager REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
7 GSA Public Buildings Service Confirming Requirements • How much space do you need? • Is there anything special or unique about your – ANSI/BOMA OFFICE AREA space needs? (ABOA) • Are there any preferences • What type of space do you we should consider? need? • Where do you need the • How long do you space? anticipate occupying the • When do you need the space? REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
8 GSA Public Buildings Service GSA Considers FMR Chapter 102 CICA Special Requirements Executive Order 13006 1984 Consider Rural Development Act of 1972 Executive Order 12072 Executive Order 11988 Congressional Districts
9 GSA Public Buildings Service Understanding Delineated Area DOs REQUIREMENTS DEVELOPMENT DONTs PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
10 GSA Public Buildings Service Acquisition Strategy Lowest Cost Tradeoff REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
11 GSA Public Buildings Service Determine Lease Model Simplified Succeeding/Superseding Streamlined Standard On Airport REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
12 GSA Public Buildings Service Types of Lease Models Lease Model Rent Simplified ≤ $150 k Net Avg. Annual Rent Succeeding/ Superseding All Levels Streamlined ≤ $500 k Net Annual Rent • telephone Standard All Levels On Airport All Levels REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS Parameters Smaller Leases; Security Level I & II Stay-In-Place Leases Small to Mid-Size Leases; Security Level I-III; 3 TI approaches Applicable to all security & rent levels and leases not accommodated by other models. Agencies located at the airport LEASE POST AWARD OCCUPANCY
13 GSA Public Buildings Service Agency Commitment to: Incorporate schedule (15 milestones) Include the draft Occupancy Agreement (OA) REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
14 GSA Public Buildings Service Pre-Solicitation REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
15 GSA Public Buildings Service Advertising • If Requirement > 10 k ABOA Square Feet – LCO must advertise via Fed. Biz. Oppz • If Requirement < 10 k ABOA Square Feet – LCO must seek competition REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
16 GSA Public Buildings Service Market Survey • Who Should Come? – GSA LCO/LCS – Agency Rep with Signatory Authority – GSA Broker (if applicable) REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
GSA Public Buildings Service 17 Owner ss me n t Assessment § Is the owner willing to modify the building to meet the requirements? As se § If not, is the building capable of meeting those requirements? Building Mission and RLP Requirements § Does the building meet the agency’s mission requirements? § Does the building meet the RLP requirements?
18 GSA Public Buildings Service Decision to Solicit • telephone REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
19 GSA Public Buildings Service Solicitation REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
20 GSA Public Buildings Service Request for Lease Proposal (RLP) & Lease RLP Solicitation specifics REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE Lease Not part of contract and drops out after award The Contract POST AWARD OCCUPANCY
21 GSA Public Buildings Service Agency Specific Requirements (ASR)/Special Requirements • Requirements unique to the procurement that are not captured in the RLP or Lease templates – Examples: computer room specifications, room schedules, specialty items • LCO/S may have to edit the package supplied by the agency REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 21
22 GSA Public Buildings Service Agency Concurrence Send draft to agency for review Make any necessary changes; assemble final version REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 22
23 GSA Public Buildings Service Issuing an RLP Package • Minimum response time is • Send copy, with cover letter, to: – All Offerors found capable of meeting requirements – Any party requesting a copy – Tenant agency (facilities) – GSA Property Manager – Federal Protective Service REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 23
24 GSA Public Buildings Service Evaluation of Offerors REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
25 GSA Public Buildings Service LCO/S Goals • • • Maintain good relationships Stay on schedule Find objective criteria Stay within your defined price range Verify technical compliance Make fair and reasonable determination REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 25
26 GSA Public Buildings Service Technical Review • • • Fire Protection of Life Safety (FPLS) Scaling of Offered Space Seismic Safety Energy Star Federal Protective Service (FPS) REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
27 GSA Public Buildings Service Evaluation of Proposals Lowest cost technically acceptable Tradeoff • Lowest cost=lowest PV • Technically acceptable = satisfies RLP requirements • May not be lowest offer • Non-monetary award factors considered (e. g. design, experience, past performance, location)
28 GSA Public Buildings Service Final Proposal Revision (FPR) • FPR: last opportunity for Offeror to revise proposal prior to award • Post-FPR: no negotiations allowed; clarifications only • Prior to the call for FPR, the LS should have at least one responsive proposal in hand REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 28
29 GSA Public Buildings Service Evaluation of Offerors REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
30 GSA Public Buildings Service Recommending the Space • Issue space recommendation – Agency acceptance – Building information – Floor plan • Revise OA to reflect negotiated lease terms • Agency must sign OA prior to lease award REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 30
31 GSA Public Buildings Service Assembling Lease • Lease Contract Agency’s Special Requirements (ASR) – Interagency Security Criteria Specifications – • • REQUIREMENTS DEVELOPMENT PRESOLICITATION Lease Amendments GSA Form 3517 (General Clauses) GSA Form 3518 (Reps and Certs) Floor plans EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 31
32 GSA Public Buildings Service Awarding the Lease • Only an LCO can award a lease • Lease awarded after executed by GSA & Lessor • Provide copy to agency REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 32
33 GSA Public Buildings Service Evaluation of Offerors REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
34 GSA Public Buildings Service Preparing Design Intent Drawings (DIDs)? Lessor • Through DID workshop or offline GSA • In-house interior designer or contract services • Reimbursable cost/verify funding Tenant Agency • In-house interior designer REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
35 GSA Public Buildings Service Simplified Model: Post-Award • Per OA ad hoc clause, agency committed to “assist with development of DIDs” • Lessor obligated to complete DIDs within 10 working days of award – Three versions maximum • Review of Construction Drawings (CD) not required REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 35
36 GSA Public Buildings Service Succeeding/Superseding: Requirements Development • Client agency is satisfied with space • Minimal alterations required – Carpet/paint refresh – Scope of Work required for other improvements REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 36
37 GSA Public Buildings Service Streamlined/Standard Model Features • Three Tenant Improvement (TI) options – Turnkey Pricing with Design Schematic – TI Allowance – Turnkey Pricing with Pre-Award DIDs REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 37
38 GSA Public Buildings Service On-Airport Model: TIs • GSA contracts for build-out in most situations – Lump sum funding required when airport authority cannot fund TI • Airport authority may do build-out if they can provide TI funding REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 38
39 GSA Public Buildings Service CD Review Process Initial construction drawings REQUIREMENTS DEVELOPMENT PRESOLICITATION GSA and tenant agency review SOLICITATION EVALUATION OF OFFERORS LEASE Final construction drawings POST AWARD OCCUPANCY 39
40 GSA Public Buildings Service TI Competitive Process • Lessor must demonstrate best efforts to obtain most competitive price • Minimum of two qualified contractor proposals • Proposal shall be submitted in the Tenant Improvement Cost Summary (TICS) Table • Bids must reflect terms of lease and approved design • Bids must separate shell from TI items REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 40
41 GSA Public Buildings Service Negotiating the TI • TI process is a negotiation • LCO/S reviews line items – Shell vs TI • Ensure proper documentation – Lease Amendment(s) – OA REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 41
42 GSA Public Buildings Service Granting Notice To Proceed (NTP) • Only LCO can grant NTP when: ü Fair and reasonable determination made ü Lessor’s cost proposal is accepted (based on lowest bid and qualified contractor) ü Funds are available • Must state price agreed upon – Do not state “not to exceed” REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 42
43 GSA Public Buildings Service Build-out • • • Construction kickoff and coordination Progress inspection process Change order process Final acceptance inspection process Project close-out REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 43
44 GSA Public Buildings Service Lease Process REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY
45 GSA Public Buildings Service Turn. Key Opportunity (TKO) • Project close-out Meeting – Agency Representatives – GSA Representatives (LCO/S, Building Manager) – FPS – Lessor & Building Manager • Discuss Roles and Responsibilities REQUIREMENTS DEVELOPMENT PRESOLICITATION EVALUATION OF OFFERORS LEASE POST AWARD OCCUPANCY 45
May 6, 2013 Lease Design Process and Project Schedules Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA 30303 404. 331. 3584 www. gsa. gov
GSA Public Buildings Service Design Process 47
GSA Public Buildings Service Design Process Components • Design Intent Documents – Establishes your Agency’s layout and basic requirements – Agency approval required • Construction Documents – Reflection of the Design Intent Documents – Agency Review for compliance with Design Intent Documents. 48
GSA Public Buildings Service Design Intent Documents • Dimensioned Office Layout in the defined space (walls, doors and other features) • Locations of Electrical, Data, Telephone outlets • Special Requirements Defined : HVAC, Lighting, millwork, plumbing, systems furniture, etc • Finishes • Electrical and HVAC Load information 49
GSA Public Buildings Service Design Intent Document • Three Methods – Government Furnished – Lessor Furnished – Design Intent Workshop 50
GSA Public Buildings Service Design Intent Document Methods • Government Furnished – Prepared by the Agency – Agency Cost – Set Time Frame – No collaboration with Design Architect – No independent Review 51
GSA Public Buildings Service Design Intent Document Methods • Lessor Furnished – Prepared by the Lessor’s Architect – No Cost to Agency – Code compliance – Limited Collaboration (2 meetings) – Drawings reviewed independently – Only one Revision without additional cost – Lessor Provided Budget Estimate 52
GSA Public Buildings Service Design Intent Document Methods • Design Intent Workshop – Requires Agency Preparation – Very collaborative – Shorter Duration (Day vs. Weeks) – Immediate revisions and feedback – May require Travel – Approvals Expected at end of Workshop 53
GSA Public Buildings Service Construction Drawing • Fully detailed drawings • Specifications for all the materials to be used. • Equipment sized based on requirements in the DIDs • Used to get permits 54
GSA Public Buildings Service Construction Drawings Development • Based on Approved DIDs • Prepared by the Lessor’s Architect and Engineer • Reviewed by the Government – Compliance with Design Intent document – Compliance with Lease Requirements • Used for Tenant Improvement Pricing 55
GSA Public Buildings Service Project Schedule Overview 56
GSA Public Buildings Service Project Schedule Overview • Lease Expiration date is the controlling date – Notification Letters – Solicitation – Occupancy • Project Schedule Objective – Complete your new project prior to current lease expiration 57
GSA Public Buildings Service Project Schedule Overview • Key Activities – Notification Letters – Requirements and Delineated Area – Lease Acquisition – Design – Construction – Relocation 58
GSA Public Buildings Service Notification Letters • Letters Customer Account Response Tracking System – Notifications at the 24, 22, 20 months from Lease expiration – Final Notification at the 18 months from Lease expiration • Why so far in advance of the lease expiration? 59
60 GSA Public Buildings Service Requirements • Planning Schedule (45 Days) • Delineated Area • Square Footage and Employee Count • Agency Special Requirements – Amount of space by Type – Requirements for each Type of space • Mechanical • Electrical • Architectural Customer Involvement
61 GSA Public Buildings Service Lease Acquisition • Planning Schedule (165 Days) – Market Survey – RLP Preparation – Proposal Preparation time – Proposal Evaluation – Negotiations – Award Customer Involvement
62 GSA Public Buildings Service Design • Planning Schedule (135 Days) – Design Intent Documents (DID) – Construction Drawings – Proposals and Evaluation – Negotiations Customer Involvement
63 GSA Public Buildings Service Construction and Relocation • Schedule for Construction (180 Days) – Durations Vary widely – Change Orders impact the Schedule • Schedule for Relocation (15 Days) – – Furniture and Equipment Cabling Phones Physical Moves Customer Involvement
GSA Public Buildings Service Your Role in Meeting the Schedule • Provide your requirements 18 months from your current lease expiration • Provide timely review comments to all documents. • Minimize changes during construction • Timely Acquisition of furniture, phones and cabling 64
GSA Public Buildings Service What can I do to shorten the delivery time? • Provide Agency Specific Requirements • • • early in the process Labor Relations Activities Focused Scheduling (Right People Right Time) Expedited Reviews Design Intent Workshops Limiting changes during construction 65
GSA Public Buildings Service Contact Information Brian Whelan 404 -331 -1652 Brian. whelan@gsa. gov 66
May 1, 2013 Automated Advanced Acquisition Program (AAAP) Information Briefing Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA 30303 404. 331. 3584 www. gsa. gov
GSA Public Buildings Service Agenda • • • Purpose Background Issues Conclusion Questions 68
GSA Public Buildings Service Purpose • Provide Overview of the AAAP – Value of AAAP to the Leasing Program – Vision for the Future of the AAAP – Current Status of AAAP Initiatives • R 4 Pilot 69
GSA Public Buildings Service Background • NCR – Started as the Advanced Acquisition Program (AAP) in 1991 – AAAP Developed in 2005 – System upgrade to Salesforce in FY 2012 • 1 st PBS Business Application in Salesforce 70
71 GSA Public Buildings Service NCR AAAP Transactions FY Lease Awards ABOA % of NCR Lease Awards 2009 38 857, 646 58% 2010 28 788, 461 33% 2011 34 981, 697 40% 2012* 7 112, 036 14% Fiscal Years 2009 -2012 NBC / In -House 63% AAAP 37% AAAP has awarded at least 1/3 of transactions NCR. *FY 2012 - The AAAP online system was shutdownthe andlease upgraded to meet newfor security standards and numbers the Salesforce. com platform. These demonstrate the high volume of deals that can be done through the AAAP.
GSA Public Buildings Service How AAAP Works • Advertisement issued every month in Fed. Biz. Opps • Government posts Request for Lease Proposals (RLP) on Salesforce • Open Period - 1 st through 7 th of every month • Lessors Create their Offers in the Salesforce Application – During the Open Period - Lessors Submit / Change / Update Offers • Offers Carry Forward Month-to-Month 72
73 GSA Public Buildings Service Traditional vs. AAAP Procurement Traditional Advertisement RLP Development Offer Submission Final Proposal Revision Lease Award AAAP Final Proposal Revision Lease Award Traditional AAAP Advertisement 2 -4 weeks 0 RLP Development 6 -8 weeks 0 Offer Submission 4 -6 weeks 0 Total Time Saved Approx. 12 – 18 weeks
GSA Public Buildings Service Issues • Marketing in each City – Lessor database is critical to ensuring competition • Regional Client Agency Buy-in – Lowest Cost Technically Acceptable – Time Savings – Overcoming Fear of the Unknown 74
GSA Public Buildings Service Vision • New Tool for Leasing Specialists – Reduce cycle time • Higher Customer Satisfaction – Address smaller/ less complex lease requirements efficiently • Spend less time on smaller requirements • Save money through lowest cost technically acceptable lease awards • Implement in R 4 this year – Projected: 3 lease awards in FY 13, 10 in FY 14 75
GSA Public Buildings Service AAAP Salesforce Application • building information 76
77 GSA Public Buildings Service Money/Billing Money/ Billing
May 1, 2013 GSA PBS Space Pricing & Updates Erin Armstrong, Portfolio Management Division 77 Forsyth Street, SW Suite 130 Atlanta, GA 30303 404. 562. 1954 www. gsa. gov
GSA Public Buildings Service Today’s Conversation Topics • How Rent Is Priced – Owned – Leased • • OA Versions & Signature Requirements Definition Of “Shell” Definition Of “TI” Tenants’ Right To Release Space 79
80 GSA Public Buildings Service How Rent Is Priced • Owned Space – Appraisal with applicable charges added – Return On Investment (ROI) • Leased Space – Passthrough of the underlying lease contract rent, any operating charges not included in the lease contract rent but paid by PBS, PBS lease fee, any security charges PDG Section 1. 2, 6. 1
81 GSA Public Buildings Service The Occupancy Agreement • Complete, concise statement of the business terms governing the relationship between PBS and the tenant agency for a specific space assignment • Billing document on which subsequent rent payments are made • Budgeting tool for customer agency • Every occupancy must have its own OA PDG Section 2. 1, 3. 1
82 GSA Public Buildings Service The 4 Parts Of Every OA • • Description of Space and Services Clauses (Terms and Conditions) Signature Page Financial Summary PDG Section 2. 1, 3. 1
83 GSA Public Buildings Service OA Iterations Requiring Signature • Tenant agency expands or reduces space at existing location • Services are added or deleted • PBS or lessor agrees to fund additional TIs, which are then amortized over the remaining OA term or an extended OA term • PBS or the tenant agency wishes to revise the OA terms (must mutually agree). PDG Section 2. 1. 5, 3. 1. 5
84 GSA Public Buildings Service Administrative OA Iterations Not Requiring Signature – Cover Letter • Joint use amenities added to or removed from the building • Capital expenditures for new or enhanced security fixtures or features approved by the Facility Security Committee (FSC) added to the building housing the lease • Lease extensions, if the extension is advancing only the lease expiration date and there are no changes in rent or square footage • Parking spaces added to or removed from an assignment • Antennas added to or removed from an assignment PDG Section 2. 1. 5, 3. 1. 5
85 GSA Public Buildings Service Annual OA Updates – No Signature, No Transmittal • • • Operating costs Real estate taxes Parking Antennas Building-specific amortized capital (BSAC) security, if applicable • Joint use PDG Section 2. 1. 5, 3. 1. 5
GSA Public Buildings Service 86 PBS Building Shell • The complete enveloping structure, the base building systems, and the finished common areas of a building that adjoin the tenant areas. Detailed in PDG Sections 2. 4. 1, 3. 5. 1
GSA Public Buildings Service PBS Building Shell • Base Building Includes: – Base structure and building enclosure – Base building electrical & mechanical systems – Common areas • Tenant Areas Includes: – Wall board on exterior perimeter & interior core walls – Common corridor stud walls without gypsum board – Suspended acoustical tile ceiling with parabolic fluorescent lighting (open office layout) – Concrete floor 87
88 GSA Public Buildings Service Building Shell in Tenant Area Suspended ceiling with fluorescent light fixtures HVAC distribution for general office space Electrical service to floor for general office space Level Concrete Floor Primed gypsum wall board on exterior perimeter walls & core elements
89 GSA Public Buildings Service Building Shell • PBS uses the shell definition for consistency • Building standards and design guides are not part of the building shell merely because they are called “standards” • Tenant agency driven upgrades to building shell are separately priced and considered TIs • The shell and TI distinction is an impermeable barrier or "firewall" across which funding cannot shift PDG Sections 2. 4. 1, 3. 5. 1
90 GSA Public Buildings Service Shell Rent – Leased Space • Pass-through of the underlying PBS lease contract shell rent • Lessors use shell definition in SFO or RLP to develop their shell rental rate – PBS policy is to include cyclic painting and carpet replacement in leases as a shell cost – Design Intent Drawings (DIDs) included in shell unless Contracting Officer specifies Government will provided DIDs. PDG Section 2. 4. 1
91 GSA Public Buildings Service Tenant Improvements • The finishes and fixtures tenant agency elects that typically take space from the shell condition to a finished, usable condition; compliant with all applicable building codes and standards • The existence of building standards does not mean they are part of shell – they are still TIs (e. g. suite entry door specification, restricted color palettes) PDG Sections 2. 5. 1, 3. 6. 1
92 GSA Public Buildings Service Typical Tenant Improvements • Electrical wiring, outlets, and horizontal conduit, including cable trays and hooks, within the tenant agency’s demised premises and to the building core. • Carpeting or other floor covering; raised access flooring • Plumbing fixtures within the demised premises and all lines connecting to the building core–except for common bathrooms • Partitioning and wall finishes • Doors (including suite entry), sidelights, frames, and hardware • Millwork • Thermostats • Window treatments PDG Sections 2. 5. 2, 3. 6. 2
93 GSA Public Buildings Service Application of TI Allowances • Tenant agency elects how its space is to be finished • Rent payment is lower if an amount less than the allowance limit is used • If the full allowance is not used for initial buildout, it is no longer available • Can only be used to pay for items that are real property, or which become real property when attached or affixed to the building PDG Sections 2. 5. 9, 3. 6. 9
94 GSA Public Buildings Service TI Cannot Fund Personal Property Examples Include: • Furniture • Microwaves • Refrigerators • Artwork • Personal computers • Audiovisual equipment • Televisions for conference rooms • Phone handsets • Physical relocation expenses of personal property PDG Sections 2. 5. 9, 3. 6. 9
95 GSA Public Buildings Service Application of TI Allowance • Initial occupancies (including expansions) – New space, new tenant – Tenant agency provided the full TI allowance – Tenant agency cannot buy down the general allowance in first generation space through use of an RWA • Backfill occupancies – 2 nd generation space, new tenant – The full TI allowance may be provided to tenant agency, subject to availability of funds PDG Sections 2. 5. 3, 3. 6. 3
96 GSA Public Buildings Service Application of TI Allowance • Midoccupancy / post initial occupancy – TIs typically funded by the tenant agency – No obligation to provide TI allowance, but may be provided to tenant agency subject to availability of funds • Continuing occupancies – Leased Space Tenant agency provided the full TI allowance PDG Sections 2. 5. 3, 3. 6. 3
97 GSA Public Buildings Service Tenant Agency Rights - Cancellation • Prior to Contract Execution – No fault cancellation • After Contract Execution, Prior to Occupancy – Agency is liable for the lesser of these two costs • In the case of a lease, the lease buyout costs, or • 16 month rental obligation had it occupied the space, plus the unamortized balance of the TIs PDG Section 5. 1
98 GSA Public Buildings Service Agency Rights - Return of Space • After the first 12 months of the OA term, tenant has right to release space to PBS with 4 months’ notice provided the following conditions are met: – There is no longer a need for the space – The space is in marketable blocks – The space is not designated as noncancelable – Applies to Continuing Occupancies PDG Section 5. 3
GSA Public Buildings Service 99 Marketable Space? • Location: Space not accessible from common corridor • Size: USF is contiguous, but must consider accessibility
100 GSA Public Buildings Service Noncancelable Space • Remote or not easily accessible location • Special purpose use or buildout necessitating significant capital outlays to retrofit the space to a more conventional use • Unusual term • Lack of any realistic federal need for the space, other than the requesting tenant agency • Any other factors that would significantly impair PBS’ ability to backfill the space PDG Sections 2. 15. 2, 5. 2
101 GSA Public Buildings Service Tenant Agency Rights • Tenant agency is entitled to a reduction in the PBS fee from 7% to 5% for leased assignments designated as non-cancelable – Tenant agencies may not volunteer to designate their space as non-cancelable as PBS solely makes that determination; will be reflected in the first pro forma OA – Once space has been designated (or not designated) as non-cancelable, it may not be changed during the OA term PDG Section 5. 2
102 GSA Public Buildings Service PBS Lease Fee • Leases charged a fixed, non-divisible 7% PBS Fee • 7% Fee applies to all lease actions with two exceptions: – 5% fee for non-cancelable space – 4% fee for USPS controlled space • PBS Fee covers – Contract risk – Lease acquisition services – Lease administration PDG Sections 2. 15, 3. 16
GSA Public Buildings Service Contact Information Erin Armstrong (404) 562 -1954 erin. armstrong@gsa. gov 103
May 1, 2013 B&FMD – RWA Management Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA 30303 404. 331. 3584 www. gsa. gov
GSA Public Buildings Service B&FMD – RWA Management Maletha Singleton, Branch Chief (Acting Director) Sharon Back, READ Financial Analyst Shelia Watson, D&C Financial Analyst (Acting Branch Chief) 105
GSA Public Buildings Service B&FMD – RWA Management • Program Analysts – Scott Foute Florida, Alabama – Randall Hayes Georgia, Mississippi – Angela Bradshaw North Carolina, South Carolina, Kentucky, and Tennessee 106
GSA Public Buildings Service 107 RWA Management Branch • What Is An RWA? Formal agreement between GSA and customer agency whereby PBS agrees to provide materials and services and the customer agency agrees to reimburse GSA costs. It identifies the bona fide need and financial agreements. • When Is An RWA Used? • For alterations to an existing space • For tenant improvement costs • For above standard services ( i. e. overtime utilities)
GSA Public Buildings Service 108 RWA Management Branch • GSA RWA Form 2957 Requirements – Agency’s Fund Certifying Official’s Signature and Date – Agency Fund Certifying Official is knowledgeable about funding authority – GSA’s Approving Official’s Signature and Date – Certified amount to match the cost estimate – RETA allows users to create, generate, and retain an electronic copies of all documents https: //extportal. pbs. gsa. gov/portal/page? _pageid=36, 1&_dad= portal&_schema=PORTAL
GSA Public Buildings Service RWA Management Branch • Required Supporting Documentation – A well developed Scope of work – A Reasonable Cost Estimate matching the amount of the RWA – A Bona fide need that is established by customer 109
GSA Public Buildings Service RWA Management Branch • RWA Amendments – Are routinely accepted from agencies – Are used to increase or decrease the RWA amount – Changes in the Scope must meet three requirements: • The Funds are legally available for new purpose • The Bona fide need exists • The Appropriation has not lapsed for obligational authority 110
GSA Public Buildings Service RWA Management Branch • Region 4 RWA Mailbox – R 04. RWA. TEAM@GSA. GOV – Zero and not the letter O – Centralization of RWA transmittals – Primary point of contact for RWA information 111
GSA Public Buildings Service RWA Management Branch • RWA Fee Structure – Project Management (4%) – Covers: • PBS Associates’ (or contact employees hired by PBS) for oversight of Tenant Improvement work • Applies to Space Programming, Design, and Construction Costs • Recaptures business line (regional and field office) overhead – Fee does not apply to: • Personal property costs such as Furniture, Equipment, and Supplies • PBS Labor Costs billed directly to the RWA 112
GSA Public Buildings Service 113 RWA Management Branch • GSA’s Sliding Scale – Recoups indirect general and administrative overhead – The overhead fee is based on actual expenses – The sliding scale is capped at $30, 000 RWA cumulative dollar amount
GSA Public Buildings Service 114 RWA Management Branch • Laws Governing RWAs – 31 U. S. C 1501(a): Purpose of Appropriation • Agencies have authority to spend funding for certain purposes and must have documentary evidence to support this. – 31 U. S. C 1502: Bona Fide Need • Funds are available only for expenses properly incurred during period of availability. – 31 U. S. C 1341: Anti-deficiency Act • Officials may not authorize expenditures exceeding amount available in a fund for the obligation. – 31 U. S. C 1552: Period of Availability • On Sept. 30 of 5 th fiscal year after period of availability, account shall be closed any remaining balances will be canceled.
116 GSA Public Buildings Service RWA Management Branch GSA Accepts RWA 1/15/2013 Period Of Funding Appropriation Availability As of 9/30/2018 Appropriation is cancelled by Congress Year 1 As of 9/30/2013 period of funding appropriation expires for new obligations Year 3 Year 4 Year 5 Period Of Contract Performance (Liquidation Period) FY 2013 Appropriation Year 2 FY 2014 FY 2015 FY 2016 FY 2017 Year 6 FY 2018 FY 2019
GSA Public Buildings Service RWA Management Branch • Expiring Customer Funds – Customer funds expire Sept 30 of the final year they are available for expense – Last billing cycle of the fiscal year is Sept 25 – All receiving reports must process by Sept 15 to ensure billing to our customer prior to expiration of their funds – What happens if we miss this date and bill late? 117
GSA Public Buildings Service RWA Management Branch • RWA Billing – What triggers a Bill? • Inspection or Receiving Report – 4% Project Management Fee automatically applied on top of “eligible” expenses – Overhead automatically applied to all expenses – Billing Term is identified on GSA Form 2957 • Block 9 B 118
GSA Public Buildings Service 119 RWA Management Branch • RWA Time Line • Year-end Internal Controls – RWA end of fiscal year acceptance “cut-off” date is established by GSA’s Office of Chief Acquisition Officer via an annual acquisition letter – RWAs submitted after the acceptance “cut-off” date risk automatic rejection by GSA
GSA Public Buildings Service RWA Management Branch • RWA Closeout – RWAs should be closed when work is complete -Substantial/Physical Completion – Contractual Completion: Contract closed – RWA Team has 30 days from this date to close RWA in RETA – Financial Completion: All costs have been billed and all invoices have been paid. RWA Close-out notice submitted to agency; agency may de-obligate remaining funds 120
GSA Public Buildings Service RWA Management Branch • Closeout • RWA Cancellations – Customer Agency may cancel an RWA anytime before charges are incurred by PBS against an RWA • Customer must submit an Amendment to cancel the RWA – If GSA has incurred costs, GSA will bill the Customer • Any remaining funds may be de-obligated by the customer 121
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