lease construction acquisition process brian whelan laura strohbach

LEASE CONSTRUCTIONLEASE CONSTRUCTIONACQUISITION PROCESSACQUISITION PROCESS

Brian Whelan Laura StrohbachBrian Whelan Laura Strohbach

FEDERAL VS. LEASEFEDERAL VS. LEASESIMILARITIESSIMILARITIES

Notice at fedbizopps.govNotice at fedbizopps.gov Required if >=Required if >= 10,000 square feet10,000 square feet

Variety of procurement Variety of procurement approachesapproaches Option to use 2 Phase Design-BuildOption to use 2 Phase Design-Build

Davis Bacon wage ratesDavis Bacon wage rates Small Business Small Business

Subcontracting PlansSubcontracting Plans if if >=$550,000 contract value>=$550,000 contract value

FEDERAL VS. LEASEFEDERAL VS. LEASESIMILARITIESSIMILARITIES

Notice at fedbizopps.govNotice at fedbizopps.gov LEED-NCLEED-NC

Minimum SilverMinimum Silver Central Contractor Central Contractor

Registration (CCR)Registration (CCR) Performance MeasuresPerformance Measures

FEDERAL VS. LEASEFEDERAL VS. LEASEMAJOR DIFFERENCESMAJOR DIFFERENCES

Use SFO, not RFPUse SFO, not RFPDo not post SFO at FBODo not post SFO at FBODo not use FedTedsDo not use FedTeds

One Design-Build projectOne Design-Build projectOfferor assembles teamOfferor assembles team

Brooks Act provisions do Brooks Act provisions do not applynot apply

P100 does not applyP100 does not apply


Lease Cost Relative to Lease Cost Relative to Market measureMarket measure

Contractor Performance Contractor Performance System is not used….yet.System is not used….yet.

Online Representations Online Representations and Certifications and Certifications Application is not used…Application is not used…yet.yet.


Generally leases have Generally leases have shorter overall schedulesshorter overall schedules

Scoring treatment is Scoring treatment is differentdifferent

Most contract risk is with Most contract risk is with lessorlessor MaterialsMaterials FinancingFinancing PerformancePerformance

PROCUREMENT TYPESPROCUREMENT TYPES

Lowest price, technically Lowest price, technically acceptableacceptable Meet minimum SFO requirements Meet minimum SFO requirements

to be technically acceptable, ORto be technically acceptable, OR Go-No Go FactorsGo-No Go Factors

Best Value Trade-offsBest Value Trade-offs One Phase One Phase Two Phase Design-Build per FAR Two Phase Design-Build per FAR

36.336.3

TWO PHASE DESIGN BUILDTWO PHASE DESIGN BUILD

Phase I factors must evaluate:Phase I factors must evaluate: ExperienceExperience Past PerformancePast Performance Other Technical FactorsOther Technical Factors

Design Philosophy and ApproachDesign Philosophy and Approach Site Plan perhapsSite Plan perhaps

Phase II factors are tailored to Phase II factors are tailored to customer and market, e.g.:customer and market, e.g.: Design considerationsDesign considerations SecuritySecurity Environmental ConsiderationsEnvironmental Considerations PricePrice

2 PHASE SSEB EVALUATIONS2 PHASE SSEB EVALUATIONS

Experience:Experience: Be specific—what types of similar Be specific—what types of similar

projects are defined in SFO?projects are defined in SFO? More than standard resumeMore than standard resume SFO Paragraph to prevent “bait SFO Paragraph to prevent “bait

and switch”and switch” Do not make evaluators wade Do not make evaluators wade

through unwanted and unneeded through unwanted and unneeded informationinformation


Past Performance:Past Performance: Demonstrated by reviews provided Demonstrated by reviews provided

by referencesby references Your responsibility to ensure Your responsibility to ensure

references for cited project can be references for cited project can be contactedcontacted

SFO states how references will be SFO states how references will be obtained:obtained: Phone callsPhone calls EmailEmail Online questionnaire (for future)Online questionnaire (for future)


Technical FactorsTechnical Factors SFO tells what to submitSFO tells what to submit Evaluate provided information Evaluate provided information

against the factors BEFORE price is against the factors BEFORE price is consideredconsidered

<=5 most highly qualified <=5 most highly qualified offerors advance to Phase IIofferors advance to Phase II

PricePrice Only evaluated in Phase IIOnly evaluated in Phase II

PERFORMANCE MEASUREPERFORMANCE MEASURE

Lease Cost Relative to Market Lease Cost Relative to Market (LCRM) reported to Congress(LCRM) reported to Congress

Current goal is 9.0% below Current goal is 9.0% below marketmarket

Use SIOR and other published Use SIOR and other published data to compare lease rates to data to compare lease rates to market ratesmarket rates

No exemptions for new lease No exemptions for new lease construction projectsconstruction projects

LCRM and PRICING POLICYLCRM and PRICING POLICY

Annual rent normally is sum of:Annual rent normally is sum of: Building ShellBuilding Shell Amortized Tenant ImprovementsAmortized Tenant Improvements Amortized Building Specific Amortized Building Specific

SecuritySecurity Operating CostsOperating Costs

Agencies get TI allowance Agencies get TI allowance locally adjusted for marketlocally adjusted for market

Need offer breakout so we can Need offer breakout so we can bill agency accuratelybill agency accurately

OFFEROR’S FEESOFFEROR’S FEES

Tenant Improvement Allowance Tenant Improvement Allowance includes all fees (PM, A/E, GC, includes all fees (PM, A/E, GC, etc.)etc.)

New SFO paragraph and 1364 to New SFO paragraph and 1364 to evaluate these fees PRIOR to evaluate these fees PRIOR to awardaward

Fees affect NPV resultsFees affect NPV results

DESIGN EXCELLENCEDESIGN EXCELLENCE

Draft DE SFO developed in 2000Draft DE SFO developed in 2000 Many regions use a form of itMany regions use a form of it National Office plans to finalize National Office plans to finalize

documents and new documents and new construction package for more construction package for more consistencyconsistency

In use for FBI Field Office In use for FBI Field Office programprogram

DESIGN EXCELLENCEDESIGN EXCELLENCEand SUSTAINABILITYand SUSTAINABILITY

Evaluate offeror’s architect—the Evaluate offeror’s architect—the lead designerlead designer

No bait and switchNo bait and switch LEED-NC SilverLEED-NC Silver Performance Specs, generallyPerformance Specs, generally Looking for creativity and Looking for creativity and

functionalityfunctionality Leased so balance aesthetics Leased so balance aesthetics

with marketabilitywith marketability

DESIGN EXCELLENCEDESIGN EXCELLENCEand SUSTAINABILITYand SUSTAINABILITY

Moving toward agency specific Moving toward agency specific SFOsSFOs FBIFBI CourtsCourts CISCIS

Updating “green lease” clausesUpdating “green lease” clauses Go by our booth to see more Go by our booth to see more

examplesexamples

SITE SELECTIONSITE SELECTION

Preferred method--PBS obtains Preferred method--PBS obtains no cost assignable site option, no cost assignable site option,

OROR

Developer options site and Developer options site and includes as part of offerincludes as part of offer

Who funds NEPA studies?Who funds NEPA studies?

EAs and EISs in federal and EAs and EISs in federal and lease projects are funded by lease projects are funded by agencyagency

ESAs in owned projects funded ESAs in owned projects funded by PBSby PBS

ESAs in lease projects funded by ESAs in lease projects funded by lessorlessor SFO language for region to fund SFO language for region to fund

and recoup cost from first and recoup cost from first month(s)’ rentmonth(s)’ rent

Frequently Asked QuestionsFrequently Asked Questions

I attended a pre-bid conference I attended a pre-bid conference for a lease construction project. for a lease construction project. Can I get a copy of the sign-in Can I get a copy of the sign-in list?list?

Yes, the contracting officer may Yes, the contracting officer may release this information.release this information.


I was notified that my offer will I was notified that my offer will advance to Phase II of the advance to Phase II of the procurement. May I get a list of procurement. May I get a list of the others who also advanced?the others who also advanced?

No, this is procurement sensitive No, this is procurement sensitive information and cannot be information and cannot be released priorreleased prior to award of a lease.to award of a lease.


I want to make an offer on an SFO I want to make an offer on an SFO that requires a LEED accredited that requires a LEED accredited professional as a team member. I professional as a team member. I have never done this before and have never done this before and do not want to now.do not want to now.

Your offer will be rejected Your offer will be rejected because it fails to meet abecause it fails to meet a minimum SFO requirement.minimum SFO requirement.


I did not advance to Phase II. What kind of I did not advance to Phase II. What kind of information can I get at a pre-award debriefing?information can I get at a pre-award debriefing?

At a minimum, At a minimum,

(1) The agency’s evaluation of significant elements in (1) The agency’s evaluation of significant elements in the offeror’s proposal; the offeror’s proposal;

(2) A summary of the rationale for eliminating the (2) A summary of the rationale for eliminating the offeror from the competition; and offeror from the competition; and

(3) Reasonable responses to relevant questions about (3) Reasonable responses to relevant questions about whether source selection procedures contained in whether source selection procedures contained in the solicitation, applicable regulations, and other the solicitation, applicable regulations, and other applicable authorities were followed in the processapplicable authorities were followed in the process of eliminating the offeror from the competition. of eliminating the offeror from the competition.


Can I get my ranking during the pre-award Can I get my ranking during the pre-award debriefing?debriefing?

No, FAR 15.505(f) prevents us from disclosing No, FAR 15.505(f) prevents us from disclosing pre-award:pre-award:

The number of offerors The number of offerors The identity of other offerorsThe identity of other offerors The content of other offerors’ proposals The content of other offerors’ proposals The ranking of other offerorsThe ranking of other offerors The evaluation of other offerors, or The evaluation of other offerors, or Other prohibited or exempt information, Other prohibited or exempt information, e.g. trade secrets, names of references, etc.e.g. trade secrets, names of references, etc.


But, can I find out who won?But, can I find out who won?

We must notify unsuccessful offerors within We must notify unsuccessful offerors within 3 days after the date of contract award, That 3 days after the date of contract award, That notices includes notices includes (i) The number of offerors solicited; (i) The number of offerors solicited; (ii) The number of proposals received; (ii) The number of proposals received; (iii) The name and address of each offeror (iii) The name and address of each offeror receiving an award; receiving an award; (iv) For leasing, normally the total contract (iv) For leasing, normally the total contract price need be furnished in the notice; andprice need be furnished in the notice; and(v) In general terms, the reason(s) the (v) In general terms, the reason(s) the offeror’s proposal was not accepted, unless offeror’s proposal was not accepted, unless the price information in paragraph (b)(1)(ivthe price information in paragraph (b)(1)(iv) ) of this section readily reveals the reason. of this section readily reveals the reason.


I made it to Phase II. What kind of feedback should I I made it to Phase II. What kind of feedback should I expect after my Phase II offer is evaluated?expect after my Phase II offer is evaluated?

The contracting officer should discuss deficiencies, The contracting officer should discuss deficiencies, significant weaknesses, and adverse past significant weaknesses, and adverse past performance information to which the offeror has not performance information to which the offeror has not yet had an opportunity to respond. yet had an opportunity to respond.

The contracting officer also is encouraged to discuss The contracting officer also is encouraged to discuss other aspects of the offeror’s proposal that could, in other aspects of the offeror’s proposal that could, in the opinion of the contracting officer, be altered or the opinion of the contracting officer, be altered or explained to enhance materially the proposal’s explained to enhance materially the proposal’s potential for award. However, the contracting officer is potential for award. However, the contracting officer is not required to discuss every area where the proposal not required to discuss every area where the proposal could be improved. The scope and extent of could be improved. The scope and extent of discussions are a matter of contracting officer discussions are a matter of contracting officer judgment. judgment.


Recently our short-listed team was told we Recently our short-listed team was told we could bring no more than 5 people to the oral could bring no more than 5 people to the oral presentation. We had to hope we had presentation. We had to hope we had selected the right 5 people to attend vs. selected the right 5 people to attend vs. having the freedom to bring each of the key having the freedom to bring each of the key participants. participants.

A limit, if any, will vary by procurement. The A limit, if any, will vary by procurement. The limit is intended to help the Government limit is intended to help the Government evaluate how well you understand the evaluate how well you understand the requirements of the SFO and what a good requirements of the SFO and what a good representation would be.representation would be.

QUESTIONS?QUESTIONS?

[email protected]@gsa.gov

Real Estate Acquisition DivisionReal Estate Acquisition Division 202.208.0664202.208.0664

Check out gsa.gov/leasingCheck out gsa.gov/leasing

mailto:[email protected]

lease construction acquisition process brian whelan laura strohbach

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